FDD Items 3 & 4 · 2025 filing
Big Chicken litigation history
What Big Chicken 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
BC Licensing LLC v. DMD Chicken LLC et al., D. Nev. Case No. 2:25-cv-00453; franchisor sued former franchisee for breach of contract; defendants filed counterclaim against franchisor and others.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Item 4: Officer Christopher Gumprecht (VP Marketing & IT) was VP of Technology at Roti Restaurants LLC when it filed Chapter 11 subchapter 5 bankruptcy (Case No. 24-13827, N.D. Ill., Aug 23 2024). Plan confirmed Feb 26, 2025.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation (breach of contract + counterclaim) involving franchisor creates legal/operational uncertainty and potential precedent risk
- Going Concern = False suggests franchisor financial instability or accounting irregularities warranting deeper investigation
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?