FDD Items 3 & 4 · 2026 filing
Arby’s litigation history
What Arby’s 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
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $3.0M
- 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
5 concluded actions: (1) Alongis class action re sandwich misrepresentation, settled $625,000 in 2025; (2) Jaghori wagyu beef class action, settled $155,000 in 2022; (3) Data Security Consumer consolidated class action, settled up to $2M cap in 2019; (4) Data Security Financial Institution consolidated case, settled up to $2.99M cap in 2020; (5) Multi-jurisdictional no-poaching settlement with 11 state AGs in 2019, no monetary payment. No pending actions disclosed.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple class action lawsuits regarding product misrepresentation (meat quantity/wagyu content) and data security breaches damage brand reputation and consumer trust
- No-poaching litigation and multi-state settlements indicate hostile franchisor-franchisee relations and potential labor recruitment restrictions
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?