FDD Items 3 & 4 · 2026 filing
BoConcept litigation history
What BoConcept disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
5 disclosed cases: (1) BoConcept Princeton NJ franchisee lawsuit 2020, settled Oct 2022; (2) Rosenblum landlord suit re LA franchisee, settled Oct 2022; (3) BC Aventura Florida franchisee group Chapter 11 bankruptcy Nov 2024, closed Nov 2025; (4) Exceptional Capital CA franchisee fraud suit May 2025, settled Nov 2025; (5) Henrik Eriksen former employee RICO/whistleblower suit Aug 2025, ongoing
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Franchisee group (BC Aventura et al.) filed Chapter 11 Nov 2024 in Southern District of Florida; liquidation plan approved April 2025, closed November 2025. Franchisor not a named creditor.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active lawsuits including allegations of franchisor scheme to eliminate franchises, suggesting hostile franchisor-franchisee relationship and potential bad faith practices
- Going concern status is true, signaling existential viability questions about the parent company's financial stability
- Bankruptcy involving Florida-based stores and multi-claim litigation by southern California franchisee suggests operational/financial distress across geographies
- Lease guarantee dispute and wrongful termination/whistleblower suit indicate governance and HR issues that may signal broader management dysfunction
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?