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
settledBrought 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?