FDD Items 3 & 4 · 2026 filing
1-800-Packouts litigation history
What 1-800-Packouts 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
- 2
- 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
Two disclosed Item 3 matters: (1) Pending - 1-800-Packouts Holdco, LLC v. Laura Gippert, Kevin Shaw, and We Live Aloha, LLC (D. Colo., filed Nov 21, 2025); franchisor sued a former franchisee for breach of contract / competing business, defendants counterclaimed; pending pre-discovery. (2) Prior - 1-800-Packouts of Ohio, LLC v. 1-800-Packouts Holdco, LLC (Portage County, OH, 2019) and the franchisor's reciprocal suit in Cherokee County, GA (2019); settled May 2020, both dismissed with prejudice.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation against franchisees for breach of contract and competing business operations suggests enforcement disputes and potential non-compete interpretation conflicts
- Prior settled lawsuit (2019) involving franchisee breaches indicates historical relationship friction and possible systemic agreement compliance issues
- Modest unit growth (10.9% YoY) is solid but insufficient to offset litigation risks and validate scalability of the model
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?