FDD Items 3 & 4 · 2025 filing

Bath Tune-Up litigation history

What Bath Tune-Up disclosed about lawsuits, arbitrations and bankruptcy in the 2025 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: 4; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2025; Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

4 actions disclosed: (1) bankruptcy adversary proceeding vs former franchisee Brian Hill (settled 2024); (2) HFC KTU LLC v. Orange Diamond Remodeling Solutions - breach of contract/non-payment (dismissed 2024-2025); (3) HFC KTU LLC v. Fillmore Enterprises - amounts due under franchise agreement (filed Aug 2024); (4) Aussie Pet Mobile administrative proceeding before Maryland Securities Commissioner (Consent Order 2006, affiliate matter)

Item 3 (litigation) · 4 matters disclosed

Litigation cases

The franchisor

Concluded (2)

HFC KTU LLC v. Orange Diamond Remodeling Solutions, LLC, et al. (Texas court and JAMS)
dismissed
Brought against a franchisee · filed 2023-11-07 · 442nd Judicial District, Denton County, Texas; JAMS · 23-10360-442; JAMS 5310000642
“HFC KTU LLC v. Orange Diamond Remodeling Solutions, LLC, et al., In the District Court, Denton County, Texas, 442nd Judicial District, Cause No. 23-10360-442 ( “Litigation”), filed on or about November 7, 2023 (“Petition”) and HFC KTU LLC vs. Orange Diamond Remodeling Solutions et al., filed in JAMS, JAMS Ref.”Page 13 of the 2025 FDD, Item 3
In re: Brian J. Hill fdba Home Innovation Concepts LLC, Kitchen Tune Up of Poughkeepsie (adversary proceeding by HFC KTU LLC)
settled
Brought by the franchisor · filed 2023-08-21 · U.S. Bankruptcy Court, Southern District of New York · 23-35702 (CGM)
“In re: Brian J. Hill fdba Home Innovation Concepts LLC, Kitchen Tune Up of Poughkeepsie, United States Bankruptcy Court Southern District of New York, Case No. 23-35702 (CGM), August 21, 2023.”Page 13 of the 2025 FDD, Item 3

Status not stated in the filing (1)

HFC KTU, LLC v. Fillmore Enterprises, Inc. et al.
Brought against a franchisee · filed 2024-08-06 · County Civil Court, Harris County, Texas · 123229
“HFC KTU, LLC v. Fillmore Enterprises, Inc. et. al., County Civil Court, Harris County, Texas; Case No. 123229, filed August 6, 2024.”Page 13 of the 2025 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

In the Matter of: Aussie Pet Mobile, Inc. and Ian Moses
concluded
Government or regulatory action · Aussie Pet Mobile, Inc. (affiliate) · Securities Commissioner of Maryland · 2004-0162
“… (Administrative Proceeding before the Securities Commissioner of Maryland;”Page 14 of the 2025 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.

Disclosure signals that moved the score

How this shows up in the verdict

Multiple litigation disclosures including franchisor breach of contract actions against franchisees, indicating collection or compliance disputes
Bankruptcy adversary proceeding by franchisee guarantor indicates financial distress among franchisees

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?

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