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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- $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)
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
- Going Concern designation is FALSE, but absence of financial transparency (no revenue/income disclosure) creates blind spot for profitability assessment
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?