FDD Items 3 & 4 · 2024 filing
BeBalanced litigation history
What BeBalanced disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Dawn Cutillo and Infinity Health LLC v. David Cutillo and Infinity Health Advisors LLC (Case 5:21-CV-02787 EDPA, filed 2021, settled July 1, 2024). Claims included copyright infringement, breach of fiduciary duty, fraud, and related claims. Settlement included adding Dawn Cutillo to board and as Chief Science Officer.
Disclosure signals that moved the score
How this shows up in the verdict
- Multi-year litigation (2021-2024) involving fraud and breach of fiduciary duty allegations, even with settlement, raises governance and trust concerns
- Settlement resulted in plaintiff joining board/executive team, indicating potential past mismanagement or philosophical conflicts requiring structural remediation
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?