FDD Items 3 & 4 · 2026 filing
Allegra litigation history
What Allegra 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
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $100K
- As stated in Item 3
- 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
Item 3 discloses 3 concluded matters: (1) Signs by Tomorrow of Siouxland, Inc. et al. v. Sign & Graphics Operations LLC (Iowa) - franchisee breach-of-contract suit against former affiliate SGO, settled March 2018; (2) Allegra Network LLC v. United Sign Ventures, LLC (AAA arbitration) - franchisor demand for unpaid amounts/post-termination obligations; counterclaims alleging fraud and Michigan Franchise Investment Law violations; settled April 2018 with respondents paying franchisor $100,000; (3) In re: Alliance Franchise Brands LLC (Washington DFI consent order, 2025) - DFI found imposing the $50/month Technology Services Fee on five pre-2019 Washington franchisees violated the WA Franchise Investment Protection Act; franchisor entered Consent Order July 2025 to refund TSF payments and pay $4,000 toward DFI costs.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple litigation cases including breach of contract, non-payment arbitration, and state consent order indicate franchisor-franchisee relationship strain and regulatory scrutiny
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?