FDD Items 3 & 4 · 2025 filing
Church’s Texas Chicken litigation history
What Church’s Texas Chicken 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
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $175K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
1 concluded enforcement case (Cajun v. Carolina Café 2024); 2 UK concluded cases (Chaudhry/Nawaz 2014, settled); 1 concluded GA/MS case (Thomas & Irons 2018-2019); 1 concluded CA case (Pacific Premier Bank / Royal California 2025); 2 pending cases (Royal Texas TX State/Federal Actions and Second Texas Federal Action involving Triangle)
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Quiznos affiliate QFA Royalties LLC filed Chapter 11 in March 2014 (In re QCE Finance LLC, et al., Case No. 14-10543-LSS, D.Del.). Plan became effective June 30, 2014; case closed December 15, 2015. Pre-dates High Bluff's acquisition of Quiznos in 2018.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigations including franchisor-initiated enforcement cases (Carolina Café Services, Royal Texas LLC) and fraud settlements signal adversarial franchisor-franchisee relationships
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?