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FranchiseVerdict

FDD Items 3 & 4 · 2026 filing

Arcpoint litigation history

What Arcpoint 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
3
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$175K
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

Concluded arbitration (Rachel DeMara v. ARCpoint/Cresso Brands, AAA Claim No. 01-24-0007-6286) settled Nov 2025 for $175,000 paid to franchisee, mutual termination of Franchise Agreement, lease assumption. Two 2025 non-compete enforcement lawsuits filed by franchisor against former franchisees (First Choice Labs/Sagar; Neo Pacific/AccuTest NW/Collyer) in US District Court, District of South Carolina.

Item 3 (litigation) · 3 matters disclosed

Litigation cases

The franchisor

Concluded (1)

  • Rachel DeMara vs. ARCpoint Franchise Group, LLC and Cresso Brands, LLC

    settled

    Brought by a franchisee · filed 2024-09-06 · American Arbitration Association · 01-24-0007-6286

    “… American Arbitration Association, AAA Claim No. 01-24-0007-6286.”Page 11 of the 2026 FDD, Item 3

    Outcome: “we caused $175,000 to be paid to the franchisee; we assumed the franchisee’s lease; the franchisee agreed to comply with all of the post-termination obligations, including the non-compete; the parties mutually released one another of claims; and the arbitration was dismissed with prejudice on December 19, 2025.”

Status not stated in the filing (2)

  • ARCpoint Franchise Group, LLC v. First Choice Labs, LLC, Shelly Sagar, and Sandeep Sagar

    Brought against a franchisee · filed 2025-09-10 · U.S. District Court for the District of South Carolina, Greenville Division · 6:25-cv-12508-DCC

    “… U.S. District Court for the District of South Carolina, Greenville Division, Civil Action No. 6:25-cv-12508-DCC (September 10, 2025).”Page 12 of the 2026 FDD, Item 3
  • ARCpoint Franchise Group, LLC v. Neo Pacific Corporation, AccuTest NW LLC, Taylor Collyer, and Ryan Collyer

    Brought against a franchisee · filed 2025-07-28 · U.S. District Court for the District of South Carolina, Greenville Division · 6:25-cv-08586-DCC

    “… U.S. District Court for the District of South Carolina, Greenville Division, Civil Action No. 6:25-cv-08586-DCC (July 28, 2025).”Page 12 of the 2026 FDD, Item 3

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.

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?