FDD Items 3 & 4 · 2026 filing

Byrider litigation history

What Byrider 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 9; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $750K; As stated in Item 3

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Multiple historical cases involving predecessor: Ohio AG consumer protection action (settled 2005), Kentucky AG consumer protection action (settled 2006, $300K payment), Baker v. Byrider arbitration (settled 2018, $500K), Marcantonio arbitration (settled 2020, franchisee paid $25K+$169K), Venturcap arbitration (settled 2020, Byrider paid $750K), Bradford parties arbitration (settled 2021, Bradford paid $1.5M). Current franchisor: Goldstein arbitration (settled 2025, partial $50K refund). Actions against franchisees: Barson (2023/2024) and Driscoll (2025) for breach of franchise agreement.

Item 3 (litigation) · 9 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (7)

Stanley Goldstein v. Byrider Franchising Partners, LLC
settled
Brought by a franchisee · filed 2025-05-19 · Judicial Arbitration and Mediation Services, Indianapolis, Indiana · 5340001668
“… No. 5340001668 (Judicial Arbitration and Mediation Services, Indianapolis, Indiana).”Page 18 of the 2026 FDD, Item 3
Outcome: “Byrider Franchising Partners agreed to a partial refund to Goldstein of $50,000.00 in lump sum payment. Legal Action Against Franchisees: In 2023, Byrider Franchising, as the franchisor under Franchise Agreements executed by it with certain entities owned by Randall Barson, initiated arbitration before JAMS for recovery of damages arising from breach of such entities’ Franchise Agreements.”
Byrider Franchising, LLC v. Anthony Marcantonio, et al.
settled
Brought by the franchisor · Byrider Franchising, LLC f/k/a Byrider Franchising, Inc. (our predecessor) · filed 2019-08-22 · American Arbitration Association, Indianapolis, Indiana · 01-19-0002-6424
“… American Arbitration Association, Indianapolis, Indiana, No: 01-19-0002-6424.”Page 16 of the 2026 FDD, Item 3
Outcome: “the parties entered into a settlement agreement on July 21, 2020 under which Anthony Marcantonio paid Byrider Franchising $25,000 in lump sum within seven days after signing the settlement agreement and further promised to pay Byrider Franchising $169,000 in monthly installments pursuant to a signed promissory note.” (page 17)
Venturcap Investment Group V. LLC, et al. v. Byrider Franchising, LLC
settled
Brought by a franchisee · Byrider Franchising, LLC (our predecessor) · filed 2018-11-27 · American Arbitration Association, Providence, Rhode Island · 02-18-0004-3851
“… No. 02-18-0004- 3851 (American Arbitration Association, Providence, Rhode Island).”Page 17 of the 2026 FDD, Item 3
Outcome: “The parties entered into a settlement agreement on February 26, 2020 under which Byrider Franchising agreed to pay: (1) the claimants a total amount of $750,000 into escrow to be released upon settlement of the MAG Lawsuit, consisting of: (i) $375,000 in lump sum payment; and (ii) $375,000 in”
H. Jeffrey Baker, et al. v. Byrider Franchising, LLC, et al.
settled
Brought by a franchisee · Byrider Franchising, LLC (our predecessor), with J.D. Byrider Systems, LLC and Byrider Holding Corp. · filed 2017-07-21 · JAMS Arbitration, Boston Division · 14000
“… JAMS Arbitration, Boston Division, Case No: 14000. On July 21, 2017, the former franchisees of a Byrider dealership in Branford, Connecticut, CT102 LLC and Sixela LLC, and personal guarantor of those entities’ franchise agreement, H. Jeffrey Baker, initiated an arbitration demand against Byrider Franchising, J.D.”Page 16 of the 2026 FDD, Item 3
Outcome: “agreed to pay claimants $500,000 to fully settle all claims and counterclaims against all parties. The first payment of $250,000 was made on May 11, 2018, and the remaining payments will be made in equal monthly installments.”
State of Ohio, ex rel Jim Petro Attorney General of Ohio vs. Byrider Sales of Indiana S, Inc., Byrider Franchising, Inc., Byrider Finance, Inc., et al.
judgment
Government or regulatory action · Byrider Franchising, Inc. (now Byrider Franchising, LLC, our predecessor) · filed 2005-02-09 · Court of Common Pleas, Franklin County, Ohio · 05CVH021505
“State of Ohio, ex rel Jim Petro Attorney General of Ohio vs. Byrider Sales of Indiana S, Inc., Byrider Franchising, Inc., Byrider Finance, Inc., Lakewood Car Credit Company, Lakewood Acceptance Corp., North Shore Auto Sales, Inc., North Shore Auto Financing,”Page 15 of the 2026 FDD, Item 3
Outcome: “a Complaint and Consent Judgment Entry and Order were filed concurrently on February 9, 2005, in the Court of Common Pleas, Franklin County, Ohio.”
Commonwealth of Kentucky ex rel Gregory D. Stumbo, Attorney General vs. James Maguire, J. Marc Maguire, Auto Acceptance Corporation, CNAC of Kentucky, Inc., J. Maguire Enterprises, Inc., Auto Acceptance, LLC, CNAC of Kentucky, LLC, J. Maguire Enterprises, LLC, and J.D. Byrider Systems, Inc.
judgment
Government or regulatory action · J.D. Byrider Systems, Inc. (a seller of the franchising business we acquired) · filed 2004-12-16 · Commonwealth of Kentucky, Jefferson Circuit Court · 04CI10575
“Commonwealth of Kentucky ex rel Gregory D. Stumbo, Attorney General vs. James Maguire, J. Marc Maguire, Auto Acceptance Corporation, CNAC of Kentucky, Inc., J. Maguire Enterprises, Inc., Auto Acceptance, LLC, CNAC of Kentucky, LLC, J. Maguire Enterprises, LLC, and J.D.”Page 15 of the 2026 FDD, Item 3
Outcome: “J.D. Byrider Systems, Inc. paid $300,000.00 to the Attorney General as reimbursement, attorneys' fees and other costs of the investigation and litigation.”
Byrider Franchising, LLC v. JDB Utah, LLC
settled
Brought by the franchisor · Byrider Franchising, LLC (our predecessor) · Judicial Arbitration and Mediation Services, Indianapolis, Indiana · 1345001472
“… No. 1345001472 (Judicial Arbitration and Mediation Services, Indianapolis, Indiana).”Page 17 of the 2026 FDD, Item 3
Outcome: “the parties entered into a settlement agreement on June 21, 2021, pursuant to which the Bradford Parties agreed to pay Byrider Franchising $1,500,000 in two installments: the first installment of $900,000 being due at signing, and the second installment of $600,000 being due two years later.” (page 18)

Status not stated in the filing (2)

Matter with no printed caption (No. 5340001556)
Brought against a franchisee · filed 2025 · JAMS · 5340001556
“In 2025, Byrider Franchising Partners, as the current franchisor under the Franchise Agreement executed by it with certain entities owned by Charles Driscoll, initiated arbitration before JAMS for recovery of damages arising from breach of such entities’ Franchise Agreement.”Page 18 of the 2026 FDD, Item 3
Matter with no printed caption
Brought by the franchisor · Byrider Franchising, LLC (our predecessor) · filed 2023 · JAMS · 5340000624
“In 2023, Byrider Franchising, as the franchisor under Franchise Agreements executed by it with certain entities owned by Randall Barson, initiated arbitration before JAMS for recovery of damages arising from breach of such entities’ Franchise Agreements.”Page 18 of the 2026 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 litigation cases including two state attorney general actions against predecessors for consumer practices and arbitrations involving contract breaches and fee disputes
Investment of $947K – $1.6M requires strong ROI justification given system contraction and litigation overhang

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?

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