FDD Items 3 & 4 · 2026 filing
D1 Training litigation history
What D1 Training 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
- 19
- Item 3, as counted in the filing
- Largest disclosed settlement
- $80K
- 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
D1 is involved in one completed arbitration it initiated against a former franchisee (won on all claims, $218,191.93 liquidated damages awarded); faces multiple pending franchisee lawsuits/arbitrations (Ostrow, Beckham, Chriss, Rose, Garrett, Garrigan, Reisterer, Vest, Wesselhoft, Cozad, Robberson) alleging fraud and misrepresentation about the franchise system, some settled via territory repurchase; an EEOC discrimination charge is pending; and affiliate Ringside Development (BIO-One) settled four state franchise-registration enforcement actions (CA, IL, WA) between 2018-2021.
Disclosure signals that moved the score
How this shows up in the verdict
- Active multi-franchisee litigation alleging fraud and misrepresentation of semi-absentee model — core business claim is disputed
- Affiliate (BIO-One) regulatory settlements for unregistered franchise sales suggest compliance and disclosure issues across related entities
- Going concern status despite 41% YoY unit growth indicates profitability/cash flow problems at corporate level despite expansion
- 7% royalty on $679k avg revenue ($47.6k annually) combined with $480k+ initial investment creates extended payback period with litigation risk 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?