FDD Items 3 & 4 · 2026 filing
Another Broken Egg Cafe litigation history
What Another Broken Egg Cafe 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
- 0
- Item 3, as counted in the filing
- Largest disclosed settlement
- N/A
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
No litigation required to be disclosed in Item 3
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
CFO Casey Rees was formerly SVP-Finance of Tijuana Flats Restaurants, LLC, which (with an affiliate) filed Chapter 11 in April 2024; plan of reorganization confirmed January 2025. Not a bankruptcy of the franchisor itself or its officers in that capacity.
Disclosure signals that moved the score
How this shows up in the verdict
- Going concern status is FALSE — suggests potential financial instability or undisclosed restructuring at corporate level
- No litigation disclosed but going concern flag suggests latent legal or operational disputes
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?