FDD Items 3 & 4 · 2025 filing
Dog Training Elite litigation history
What Dog Training Elite 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
- 4
- 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 arbitration among members/officers settled and dismissed with prejudice Oct 2025. 3 franchisor-initiated suits: 2 against Condorman/Neal Mestas (dismissed 2025), 1 against Ballard/Sbibos (pending) for breach of contract and failure to pay royalties.
Item 3 (litigation) · 4 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Dog Training Elite Franchising, LLC v. Sarah Jean Ballard, Robert Loran Ballard, and Sbibos, LTD
pendingBrought against a franchisee · filed 2024-07-26 · Utah federal district court · 2:24-cv-00526
“… (Utah federal district court.”Page 11 of the 2025 FDD, Item 3
Concluded (3)
Dog Training Elite Franchising, LLC v. Condorman, Inc. and Neal Mestas
dismissedBrought against a franchisee · filed 2024-07-26 · U.S. District Court for the District of Arizona · 2:24-cv-01861
“… (U.S. District Court for the District of Arizona.”Page 11 of the 2025 FDD, Item 3
Dog Training Elite Franchising, LLC v. Condorman, Inc. and Neal Mestas
dismissedBrought against a franchisee · filed 2024-08-21 · U.S. District Court for the District of Utah · 240905831
“… (U.S. District Court for the District of Utah. Filed August 21, 2024, Case No. 240905831).”Page 11 of the 2025 FDD, Item 3
Rucker Canine LLC, Fund Enterprises, L.L.C. vs. John Mestas, Neal Mestas, Arrow Kennels, Inc., DTE Demo Dog LLC and Dog Training Elite Franchising LLC
settledfiled 2024-09-10 · Arbitration (forum not named) · 01-24-0007-6758
“… (Filed September 10, 2024, Arbitration Case number 01-24-0007-6758).”Page 10 of the 2025 FDD, Item 3
Outcome: “In October 2025, the arbitrator dismissed the case with prejudice.”
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
- Internal litigation involving breach of fiduciary duty and fund misappropriation suggests governance instability at franchisor level
- Three franchisor-initiated lawsuits indicate enforcement challenges and potential franchisee compliance/profitability issues
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?