FDD Items 3 & 4 · 2025 filing
CycleBar litigation history
What CycleBar 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
- 13
- Item 3, as counted in the filing
- Largest disclosed settlement
- $450K
- 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
Multiple pending actions against Xponential-affiliated brands and officers alleging pre-sale disclosure violations, fraudulent inducement, and breach of franchise agreements (AKT Lawsuit, Yoga Six/Enlightened Armadillo, Nickle Acquisition, 4LMVMT Arbitration, AHC Lawsuit, Zaltsman Arbitration); one completed settlement (Anderson Holdings, ~$28,000 equipment buyout); four pending shareholder securities/derivative lawsuits against parent XFI (Taylor General, Akande, Ayers, WBP Pension Fund, Nelson); and a California DFPI regulatory Consent Order requiring a $450,000 administrative penalty for FDD registration misrepresentations.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Xponential's Chief Operating Officer of North America, Timothy Weiderhoft, and his wife filed a personal Chapter 7 bankruptcy petition on August 9, 2023 (Case No. 2:23-bk-05397-BKM, District of Arizona) after an unrelated restaurant venture failed during COVID-19; discharge granted December 20, 2023.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple pending and completed litigation actions involving franchisor, including pre-sale disclosure violations and securities claims, suggesting compliance issues
- Going Concern status = False suggests potential financial instability at franchisor level
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?