FDD Items 3 & 4 · 2026 filing
The Maids litigation history
What The Maids disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- Not extracted
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Franchisor filed 4 lawsuits during the last fiscal year against former franchisees for breach of franchise agreement/promissory note/personal guaranty, trademark infringement, and unfair competition: (1) v. Sparkle Maids LLC/Nobes seeking $467,469.33; (2) v. Raising Dreams Group LLC/Wallace seeking at least $127,323 (includes trademark infringement, trade secret misappropriation, non-compete violation); (3) v. Edwin Manukyan seeking $69,385.32; (4) v. GoStar International Group USA LLC/Xu/Wang seeking at least $250,429 (includes underreported revenues, unauthorized post-termination use of marks). No litigation against the franchisor was disclosed. No bankruptcy disclosed.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?