FDD Items 3 & 4 · 2026 filing
1 Percent Lists litigation history
What 1 Percent Lists 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 pending cases: (1) Jessica Wynne Vogel v. 1 Percent Lists Franchises, LLC et al. (E.D. La., No. 2:25-cv-661), a former franchisee's suit alleging business opportunity law violations, fraudulent inducement, breach of contract, and tortious interference following termination of her franchise agreement; franchisor filed a counterclaim; trial set September 2026. (2) 1 Percent Lists Franchises, LLC v. Sell Smart, LLC et al. (22nd JDC, Parish of St. Tammany, No. 2025-15215), franchisor's suit against a franchisee and guarantors for non-compete violations and unpaid royalties.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation alleging fraudulent inducement and breach of contract in North Carolina — suggests potential misrepresentation during franchise sales process
- Going Concern status is 'False' — unclear if this means going concern exists (negative) or doesn't exist (positive), but lack of clarity itself is concerning
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?