Skip to main content
FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Black Rifle Coffee Company litigation history

What Black Rifle Coffee Company 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
$400K
As stated in Item 3
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

Tang Capital Partners breach of contract re: warrant agreement (pending trial July 2025); 1791 Management LP fraud/breach claims (dismissed); Strategy and Execution Inc. breach of contract (settled $400K in Jan 2025); Clark et al. breach of contract re: warrant agreement (stayed)

Item 3 (litigation) · 4 matters disclosed · 3 pending listed

Litigation cases

The franchisor

Pending (1)

  • Strategy and Execution, Inc. v. Black Rifle Coffee Company LLC

    pending

    filed 2023-02-03 · U.S. District Court, Western District of Texas · 5:23-cv-00135-FB

    “Strategy and Execution, Inc, v. Black Rifle Coffee Company LLC (US District Ct., W.D. Tex., filed February 3, 2023, Case No. 5:23-cv-00135-FB).”Page 10 of the 2025 FDD, Item 3

    Outcome: “the parties settled all remaining claims not subject of the pending motions, in which $400,000 was paid to the counterparty in accrued liabilities related to this matter.” (page 11)

Concluded (1)

  • 1791 Management LP v. BRC Inc., Authentic Brands LLC, Black Rifle Coffee Company LLC, et al.

    dismissed

    filed 2022-05-20 · Superior Court of California, Orange County · 30-2022-01260703-CU-FR-CJC

    “1791 Management LP, v. BRC Inc., Authentic Brands LLC, Black Rifle Coffee Company LLC, et. al. (Sup. Ct. Cal., Orange County, filed May 20, 2022, Case No. 30-2022-01260703-CU-FR-CJC). 1791 Capital Partners, LP (“Plaintiff”) filed a complaint against BRC Inc.,”Page 10 of the 2025 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (2)

  • Clark et al. v. BRC Inc.

    pending

    BRC Inc. (ultimate parent) · filed 2023-06-22 · U.S. District Court, Southern District of New York · 1:23-cv-05340-RWL

    “… (US District Ct., S.D.N.Y., filed June 22, 2023, Case No. 1:23-cv-05340- RWL). Plaintiff John Brian Clark, JBC Structured Products, LLC and Marathon Capital LLC (“Clark”) filed this breach of contract action against defendant BRC Inc.”Page 11 of the 2025 FDD, Item 3
  • Tang Capital Partners, LP v. BRC Inc.

    pending

    BRC Inc. (ultimate parent) · filed 2022-04-28 · U.S. District Court, Southern District of New York · 22-CV-3476 (RWL)

    “Tang Capital Partners, LP, v. BRC Inc. (US District Ct., S.D.N.Y., filed April 28, 2022, Case No. 22-CV-3476 (RWL)). Tang Capital Partners, LP (“Tang Capital”) filed this breach of contract action against BRC Inc. (“Company”).”Page 10 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 active litigation cases including royalty disputes with Strategy and Execution, Inc. suggest operational/payment conflicts
  • Litigation involving warrant agreements and Tang Capital Partners suggests corporate governance instability and potential founder/investor conflicts

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?