FDD Items 3 & 4 · 2026 filing
Yesco litigation history
What Yesco 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- 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
Statement of claim issued October 8, 2015 against 2261116 Ontario Inc. (226), 2470322 Ontario Ltd. (247), Wilf Goldlust and Gerald Patt for breach of contract and seeking injunction. 226 was franchisee for Ontario. Counterclaims filed by Goldlust and 226 alleging breach of contract, breach of good faith, misrepresentation and violations of Arthur Wishart Act. Partial summary judgment granted to franchisor dismissing misrepresentation claims (July 2017). Claims against Goldlust and 226 settled September 2017. Remaining claims against Patt and 247 settled August 2018 with one-year non-compete agreement.
Disclosure signals that moved the score
How this shows up in the verdict
- 1 litigation matter (franchisee termination/nonpayment, counterclaims)
- Audited, Item 19 disclosed, no bankruptcy/going-concern
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
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?