FDD Items 3 & 4 · 2025 filing

Aaron's litigation history

What Aaron's disclosed about lawsuits, arbitrations and bankruptcy in the 2025 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 20; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2025; Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

Item 3 discloses 20 actions (1 pending, 19 concluded). Matters include a 2025 securities/fiduciary-duty suit over the 2024 going-private transaction; an ADA accessibility class action; multiple PC Rental Agent privacy suits (Byrd, Winslow, Price, Peterson); a TCPA class action (Grogan, $2.175M settlement); franchisee disputes (Kaco, MKW); and numerous FTC and state AG investigations/consent orders (FTC store-swap and privacy CIDs, Texas AVC, California AG $25M restitution, Pennsylvania AVCs, Washington no-poach AOD). Aaron's appeared as both plaintiff and defendant.

Item 3 (litigation) · 20 matters disclosed · 1 pending listed

Litigation cases

The franchisor and its predecessor

Concluded (13)

Tracy Arnold v. Aaron’s, LLC, et al.
concluded
Brought by a third party · filed 2022-03-04 · E.D. Tenn. · 2:22-cv-00024-TAV
“… 2:22-cv-00024-TAV (E.D. Tenn. Mar. 4, 2022). On March 30, 2022, Aaron’s received a class act”Page 16 of the 2025 FDD, Item 3
Outcome: “The court approved the settlement agreement and entered dismissal of the case on October 19, 2022. 2”
Aaron’s, Inc. v. Kaco, LLC and Randy Brown (the “Kaco Dispute”)
concluded
Brought by the franchisor · Aaron’s, Inc. · filed 2020-05-18 · American Arbitration Association, Atlanta Regional Office · 01-20-0005-2953
“Aaron’s, Inc. v. Kaco, LLC and Randy Brown (Case No.01-20-0005-2953) (“Kaco Dispute”), American Arbitration Association, Atlanta Regional Office, file”Page 17 of the 2025 FDD, Item 3
Outcome: “The case was settled in October 2020, and dismissal of the case was filed December 1, 2020.”
Stein v. Aaron’s, Inc., et. al.
concluded
Brought by a third party · Aaron’s, Inc. · filed 2020-02-28 · S.D.N.Y. (transferred to N.D. Ga.) · 1:20-cv-01796-LLS
“… 1:20-cv-01796-LLS (S.D.N.Y., Feb. 28, 2020). Filed in U.S. District Court for the Southern Distri”Page 17 of the 2025 FDD, Item 3
Outcome: “The Court granted Aaron’s motion to dismiss on September 29, 2022”
Turtle Creek Assets, Ltd. vs. Aaron’s Inc.
concluded
Aaron’s, Inc. · filed 2020-02-18 · State Court of Cobb County · 20-A-628; 20102626
“… (State Court of Cobb County, 20-A-628, Feb. 18, 2020) Civil Action File No. 20102626). This was a contract”Page 16 of the 2025 FDD, Item 3
Outcome: “The court approved the settlement agreement and entered dismissal of the case on November 2, 2022. 3” (page 17)
United States of America Federal Trade Commission Civil Investigative Demand to Aaron’s, Inc. (store swaps / reciprocal purchase agreements)
concluded
Government or regulatory action · Aaron’s, Inc. · filed 2019-04-12 · U.S. Federal Trade Commission · File No. 191-0074
“United States of America Federal Trade Commission Civil Investigative Demand to Aaron’s, Inc. (File No. 191-0074). On April 12, 2019, Aaron’s received a civil investigati”Page 19 of the 2025 FDD, Item 3
Outcome: “The Consent Order was approved by the FTC full commission on May 11, 2020.”
Within this matter, as the filing narrates it
- FTC Transactions re: Store Swaps
  concluded
  Government or regulatory action · names a predecessor · Aaron’s, Inc. · filed 2019-04-12 · U.S. Federal Trade Commission
  “… On April 12, 2019, The FTC served a CID from its competition division related to the practice of “store swaps” among”Page 22 of the 2025 FDD, Item 3
  Outcome: “On July 23, 2019, we entered a Consent Order with the FTC th”
Counted as one matter, the way Item 3 groups it.
United States of America Federal Trade Commission Civil Investigative Demand to Aaron’s, Inc. and Progressive Leasing, LLC
concluded
Government or regulatory action · Aaron’s, Inc.; Progressive Leasing, LLC · filed 2018-07-02 · U.S. Federal Trade Commission; consent order entered in the U.S. District Court for the Northern District of Georgia · File No. 1823127
“… (together, File No. 1823127). On July 2, 2018,”Page 18 of the 2025 FDD, Item 3
Outcome: “The Consent Order was entered by the U.S. District Court for the Northern District of Georgia on April 22, 2020. 9.”
Aaron’s, Inc. v. MKW Investments, Inc. et. al.
concluded
Brought by the franchisor · Aaron’s, Inc. · filed 2016-04-27 · U.S. District Court for the Northern District of Georgia (appealed to the Eleventh Circuit) · 1:16-cv-01363-ELR; 11th Cir. 18-13666-H
“… (Civil No. 1:16-cv-01363-ELR). U.S. District Court for the Northern District of Georgia, filed April 27, 2016, alleging cla”Page 18 of the 2025 FDD, Item 3
Outcome: “In November 2019 the parties settled the case.” (page 19)
Lomi Price v. Aaron’s, Inc. and NW Freedom Corporation
concluded
Aaron’s, Inc. · filed 2013-02-27 · 13-EV-016812B
“… (Case No. 13-EV-016812B), filed on February 27, 2013. Plaintiff was an ind”Page 18 of the 2025 FDD, Item 3
Outcome: “This case has been resolved as part of the global settlement discussed above in Byrd v. Aa”
Michael Winslow and Fonda Winslow v. Sultan Financial Corporation, Aaron’s, Inc., John Does (1-10), Aaron’s Franchisees and Designerware, LLC
concluded
Brought by a third party · Aaron’s, Inc. · filed 2013-03-05 · Los Angeles Superior Court, moved to C.D. Cal. · BC502304; CV23-02684 MWF (SHx)
“… (Case No. BC502304), Los Angeles Superior Court”Page 17 of the 2025 FDD, Item 3
Outcome: “The case was dismissed by U.S. District Court for the Central District of California on September 16, 2019. 7.” (page 18)
State of California Attorney General’s Office Investigation of Aaron’s
concluded
Government or regulatory action · Aaron’s, Inc. · filed 2012 · Superior Court of the State of California, County of Los Angeles · BC 559774
“… (Case No. BC 559774), Superior Court of the State of California, County of Los Angeles (October 14”Page 20 of the 2025 FDD, Item 3
Outcome: “Aaron’s and the California Attorney General filed a Joint Stipulation For Entry of Final Judgment and Permanent Injunction (“”
Crystal and Brian Byrd v. Aaron’s, Inc., Aspen Way Enterprises, Inc., John Does (1-100) Aaron’s Franchisees and Designerware, LLC (the “Byrd Litigation”)
concluded
Brought by a third party · Aaron’s, Inc. · filed 2011-05-16 · U.S. District Court, Western District of Pennsylvania · 1:11-CV-101-SPD
“Crystal and Brian Byrd v. Aaron’s, Inc., Aspen Way Enterprises, Inc., John Does (1-100) Aaron’s Franchisees and Designerware, LLC, (Civil No.:1:11-CV-101-SPD) (“Byrd Litigation”). U.S. Distr”Page 17 of the 2025 FDD, Item 3
Outcome: “The U.S. District Court for the Eastern District of Pennsylvania entered a dismissal of the case on March 27, 2020.”
United States of America Federal Trade Commission Investigation of Aaron’s (consumer privacy / PC Rental Agent)
concluded
Government or regulatory action · Aaron’s, Inc. · filed 2011-08-05 · U.S. Federal Trade Commission · File No. 1223264
“United States of America Federal Trade Commission Investigation of Aaron’s, (File No. 1223264), Civil Investigation Commencement Date: August 5, 2011. The FTC i”Page 19 of the 2025 FDD, Item 3
Outcome: “On March 11, 2014, the FTC approved a final Consent Order, w” (page 20)
In Re: The State of Texas and Aaron Rents, Inc. (Assurance of Voluntary Compliance)
concluded
Government or regulatory action · Aaron Rents, Inc. · filed 2007-04-25 · District Court of Travis County, Texas · D-1-GV-07-000722
“In Re: The State of Texas and Aaron Rents, Inc., (D-1-GV-07-000722), District Court of Travis County, Texas, filed April 25, 2007. On April 25, 2007, Aaron’s en”Page 19 of the 2025 FDD, Item 3
Outcome: “Aaron’s agreed to reimburse the Office of the Attorney General of Texas $100,000 for fees and c”

Officers and directors (individuals, not the company)

Pending (1)

Berrin Koksal v. Douglas A. Lindsay et al.
pending
Brought by a third party · Douglas A. Lindsay and other named officers/directors · filed 2025-02-11 · N.D. Ga. · 1:25-cv-00754-LMM
“… Civil Action No. 1:25-cv-00754-LMM (N.D. Ga.): This matter was filed February 11, 2025. Plaintiff alleges violations”Page 16 of the 2025 FDD, Item 3
Outcome: “the Company filed a motion to dismiss the Amended Complaint. This matter is pending.”

This list shows 14 of the 20 matters Item 3 discloses; the rest are in the filing.

One proceeding above is indented under the matter it belongs to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 20 Item 3 discloses agree.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Extensive litigation history including FTC consent orders, data security breaches, customer privacy violations, and ongoing securities class action creates legal/reputational risk

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?

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