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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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)
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?