FDD Items 3 & 4 · 2024 filing

Dickey's Barbecue Pit litigation history

What Dickey's Barbecue Pit disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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: 17; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $2.4M; As stated in Item 3

Bankruptcy (Item 4): Disclosed; Franchisor, parent, predecessor or officer

Filing year: 2024; Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

6 pending cases including franchisee claims for fraudulent inducement, breach of contract, RICO, and data security/consumer protection class actions; 5 concluded cases including a $2.35M data breach class settlement and a $500K franchise dispute settlement.

Item 3 (litigation) · 17 matters disclosed · 6 pending listed

Litigation cases

The franchisor

Pending (6)

Ashwani Jaiswal v. Dickey’s Barbecue Restaurants Inc.
pending
Brought by a franchisee · filed 2024-03-27 · American Arbitration Association · 01-24-0003-3754
“… American Arbitration Association Case No. 01-24-0003-3754, Filed on March 27, 2024.”Page 17 of the 2024 FDD, Item 3
Outcome: “The arbitration is currently pending, and no final hearing date has been set.”
Within this matter, as the filing narrates it
- Ashwani Jaiswal v. Dickey’s Barbecue Restaurants, Inc.
  dismissed
  Brought by a franchisee · names the franchisor · filed 2023-09-20 · C.D. Cal. · 5:23-cv-019121-JGB-SP
  “… No. 5:23-cv-019121-JGB-SP (C.D. Cal.) Filed on September 20, 2023”Page 17 of the 2024 FDD, Item 3
  Outcome: “As a result, Mr. Jaiswal’s lawsuit was dismissed on March 6, 2024, and Mr. Jaiswal refiled his claims in arbitration before the AAA on March 27, 2024.”
Counted as one matter, the way Item 3 groups it.
Daniel Unsworth et al. v. Dickey's Barbecue Restaurants, Inc. et al.
pending
Brought by a franchisee · filed 2024-06-06 · U.S. District Court for the Northern District of Ohio- Eastern Division · 5:24-cv-00975
“… Civil Action No. 5:24-cv-00975, U.S. District Court for the Northern District of Ohio- Eastern Division.”Page 18 of the 2024 FDD, Item 3
Outcome: “Dickey’s has filed a motion to stay the case pending mediation and, if necessary, arbitration, which motion is pending before the court.” (page 19)
Christopher Bruno & CJ Bruno Enterprise v. Dickey’s Barbecue Restaurants Inc.
pending
Brought by a franchisee · filed 2023-10-11 · American Arbitration Association · 01-23-0004-5005
“… American Arbitration Association Case No. 01-23-0004-5005, Filed on October 11, 2023.”Page 17 of the 2024 FDD, Item 3
Outcome: “The arbitration is currently pending as between Claimants and Dickey’s and is set for final hearing on September 8, 2025.”
G Six Consulting, LLC, Demetrius and Maria Gibson v. Dickey’s Barbecue Restaurants Inc., Roland Dickey, Jr., Jeff Gruber, Lee Quinn, Deborah Longworth, Stephen Mullet, and Virtual Brands, Inc.
pending
Brought by a franchisee · filed 2023-10-11 · American Arbitration Association · 01-23-0004-5053
“… American Arbitration Association Case No. 01-23-0004-5053, Filed on October 11, 2023.”Page 17 of the 2024 FDD, Item 3
Outcome: “The arbitration is currently pending as between Claimants and all parties identified above and is set for final hearing on April 28, 2025.” (page 18)
LPH Holdings & Mark Jones v. Dickey’s Barbecue Restaurants Inc.
pending
Brought by a franchisee · filed 2023-11-21 · American Arbitration Association · 01-23-0005-4534
“… American Arbitration Association Case No. 01-23-0005-4534, Filed on November 21, 2023.”Page 18 of the 2024 FDD, Item 3
Outcome: “The arbitration is currently pending as between Claimants and Dickey’s and is set for final hearing on January 27, 2025.”
Covington v. Dickey’s Barbecue Restaurants Inc.
pending
Brought by a franchisee · filed 2022-10-13 · United States District Court for the Northern District of Texas · 3:22-cv-02292-S
“… United States District Court for the Northern District of Texas, Case No. 3:22-cv-02292-S, Filed October 13, 2022.”Page 16 of the 2024 FDD, Item 3
Outcome: “Trial is currently set for June 2025.” (page 17)

Concluded (11)

Nathan Edwards v. Dickey’s Barbecue Restaurants, Inc.
settled
Brought by a franchisee · filed 2022-09-09 · Marysville Court of Common Pleas, Union County, Ohio · 22CV0163
“… Case No. 22CV0163, Marysville Court of Common Pleas, Union County, Ohio, filed on September 9, 2022.”Page 21 of the 2024 FDD, Item 3
Outcome: “Dickey’s refunded half of Mr. Edwards initial franchise fee ($10,000) in full and final settlement of all disputes and the case was dismissed by the Court on December 19, 2022.”
Michael Marhefka et al. v. Dickey’s Barbecue Restaurants, Inc.
settled
filed 2021-04-05 · United States District Court for the Southern District of California · 3:21-cv-00585-L-MDD
“… United States District Court for the Southern District of California, Case No. 3:21-cv-00585-L-MDD, Filed on April 5, 2021;”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Tammy Jeary et al. v. Dickey’s Barbecue Restaurants, Inc. d/b/a Dickey’s Barbecue Pit, and Dickey’s Capital Group
settled
filed 2021-01-20 · United States District Court for the Northern District of Texas · 3:21-cv-00137-K
“… United States District Court for the Northern District of Texas, Case No. 3:21-cv-00137-K, Filed on January 20, 2021;”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Demi Kostka et al. v. Dickey’s Barbecue Restaurants, Inc.
settled
filed 2020-11-06 · United States District Court for the Northern District of Texas · 3:20-cv-03424-K
“… United States District Court for the Northern District of Texas, Case No. 3:20-cv-03424-K, Filed on November 6, 2020;”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Latorsha Adams et al. v. Dickey’s Barbeque Restaurants, Inc. and Dickey’s Capital Group Inc.
settled
filed 2020-12-09 · United States District Court for the Northern District of Texas · 3:20-cv-03603-K
“… United States District Court for the Northern District of Texas, Case No. 3:20-cv-03603-K, Filed on December 9, 2020.”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Robert Stroman et al. v. Dickey’s Barbecue Restaurants, Inc.
settled
filed 2020-10-26 · United States District Court for the Northern District of Texas · 3:21-cv-00769-K
“… United States District Court for the Northern District of Texas, Case No. 3:21-cv-00769-K, Filed on October 26, 2020;”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Ross Diczhazy et al. v. Dickey’s Barbecue Restaurants d/b/a Dickey’s Barbecue Pit, Inc., and Dickey’s Capital Group Inc.
settled
filed 2020-11-09 · United States District Court for the Southern District of California · 3:20-cv-02189-L-MDD
“… United States District Court for the Southern District of California, Case No. 3:20-cv-02189-L-MDD, Filed on November 9, 2020;”Page 21 of the 2024 FDD, Item 3
Outcome: “The Court granted final approval to the settlement on June 6, 2023.”
Campbell Investments, LLC, Kevin Campbell, and Kody Campbell v. Dickey’s Barbecue Restaurants, Inc.
dismissed
Brought by a franchisee · filed 2017-06-27 · 2:17-cv-00832-DB
“… Case No. 2:17-cv-00832-DB, Filed on June 27, 2017;”Page 20 of the 2024 FDD, Item 3
Outcome: “In consideration for such dismissal, Dickey’s agreed to pay Campbell, Kevin Campbell, and Kody Campbell the sum of $500,000.”
Within this matter, as the filing narrates it · 2 proceedings
- Dickey’s Barbecue Restaurants, Inc. v. Campbell Investments, LLC, Kevin Campbell, and Kody Campbell
  concluded
  Brought against a franchisee · names the franchisor · filed 2018-04-26 · American Arbitration Association · 01-18-0001-6937
  “… American Arbitration Association, Case No. 01-18-0001-6937, Filed on April 26, 2018;”Page 20 of the 2024 FDD, Item 3
- Dickey’s Barbecue Restaurants, Inc. v. Campbell Investments, LLC, Kevin Campbell, and Kody Campbell
  concluded
  Brought against a franchisee · names the franchisor · filed 2018-07-11 · United States District Court for the Eastern District of Texas, Sherman Division · 4:18mc62
  “United States District Court for the Eastern District of Texas, Sherman Division, Civil Action No. 4:18mc62, Filed on July 11, 2018.”Page 20 of the 2024 FDD, Item 3
Counted as one matter, the way Item 3 groups it.
Jenkins v. Dickey’s Barbecue Restaurants, Inc.
judgment
Brought by a franchisee · filed 2016-12-14 · United States District Court for the Northern District of California · 4:16-cv-07133-KAW
“… United States District Court for the Northern District of California, Case No. 4:16-cv-07133-KAW, Filed on December 14, 2016.”Page 19 of the 2024 FDD, Item 3
Outcome: “With respect to Jenkins, the arbitrator found that Dickey’s breached the franchise agreement by failing to give Jenkins an operations manual and awarded Jenkins with $50,000 (the amount of royalties paid).”
Amy Meadows, Dawn Toff, Donna Schiano et al. v. Dickey’s Barbecue Restaurants, Inc.
concluded
Brought by a franchisee · filed 2015-05-12 · United States District Court for the Northern District of California · 3:15-cv-02139
“… United States District Court for the Northern District of California, Case No. 3:15-cv-02139, Filed on May 12, 2015”Page 19 of the 2024 FDD, Item 3
Outcome: “With respect to Toff, Schiano and Meadows, the arbitrator found that Dickey’s breached the franchise agreements by not allowing purchases from other suppliers, but denied all other claims brought by Toff, Schiano and Meadows.”
Dickey’s Barbecue Restaurants, Inc. and Restaurant Growth, Inc. v. Roger Dennis Perry
settled
Brought against a franchisee · filed 2014-03-24 · American Arbitration Association · 712014000167
“… American Arbitration Association Case No. 712014000167, Filed on March 24, 2014.”Page 20 of the 2024 FDD, Item 3
Outcome: “On January 6, 2015, Dickey’s entered into a settlement with Perry under which Dickey’s paid Perry $14,000 to regain operational control of the restaurant and each party released all claims against the other.”

3 of the proceedings above are indented under the matter they belong to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 17 Item 3 discloses agree.

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.

Disclosed in the 2024 Franchise Disclosure Document

Item 4: bankruptcy

Affiliates Stanford Sonoma Corp. and ORS.COM, Inc. filed Chapter 11 petitions on April 17, 2023. Both sold equipment to Dickey's franchisees. Joint reorganization plan was confirmed October 22, 2023, and substantially consummated by February 28, 2024.

Disclosure signals that moved the score

How this shows up in the verdict

Multiple franchisee litigation cases alleging breach of contract, fraud, and misrepresentation suggest systemic franchisor-franchisee relationship problems
Data security class-action settlement indicates operational/compliance vulnerabilities and potential reputational damage

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?

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