FDD Items 3 & 4 · 2025 filing
Crave Cookies litigation history
What Crave Cookies 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- 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
1 pending (Crave Cookies LLC v. D&G Ownership Group, arbitration, Feb 2025, settlement negotiations); 1 prior (Crave Cookies LLC v. Boman Cookies, arbitration, found in favor of Crave); 1 prior (Crumbl LLC v. Crave Cookies, D. Utah 2022, dismissed by stipulated motion)
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
Crave Cookies, LLC v. D&G Ownership Group, LLC
pendingBrought by the franchisor · Crave Cookies, LLC · filed 2025-02-28 · Arbitration · 01-25-0001-1780
“… Arbitration Case number 01-25-0001-1780 Crave Cookies filed suit against a former franchisee on February 28, 2025.”Page 10 of the 2025 FDD, Item 3
Concluded (2)
Crumbl LLC v. Crave Cookies, LLC
dismissedBrought by a third party · Crave Cookies, LLC · filed 2022-05-10 · U.S. District Court for the District of Utah · 2:22-cv-00319-DAO
“… No. 2:22-cv-00319-DAO (D. Utah filed May 10, 2022). Crumbl, one of our competitors, filed suit against us.”Page 10 of the 2025 FDD, Item 3
Crave Cookies, LLC v. Boman Cookies, LLC
concludedBrought by the franchisor · Crave Cookies, LLC · Arbitration · 01-23-0004-3130
“… Arbitration Case number 01-23-0004-3130 Crave Cookies filed suit against a former franchisee and actively disputes and contests the Counterclaims.”Page 10 of the 2025 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
- Two litigation cases (one pending, one won by franchisor) indicate franchisee-franchisor relationship friction despite small unit base
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?