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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 8
- Item 3, as counted in the filing
- Largest disclosed settlement
- $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.
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–$1.58M 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?