FDD Items 3 & 4 · 2025 filing
Edible Arrangements litigation history
What Edible Arrangements 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
3 disclosed actions: (1) Batroukh arbitration 2015 - settled; (2) ZRIZA franchisee arbitration 2020 - settled 2021; (3) Card Isle Corporation v. Edible Arrangements et al. - trade secret/copyright/breach of contract, ongoing
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Card Isle Corporation v. Tariq Farid, Edible Arrangements, LLC, and Netsolace, Inc.
pendingBrought by a third party · filed 2020-11-24 · United States District Court for the Northern District of Georgia · 1:21-cv-01971
“… (United States District Court for the Northern District of Georgia, Case No. 1:21-cv-01971, filed November 24, 2020).”Page 14 of the 2025 FDD, Item 3
Outcome: “On August 30, 2023, the court entered summary judgment in our favor on the plaintiff’s claims of trade secret misappropriation, copyright infringement, and breaches of contract involving confidentiality and termination provisions of the underlying service agreement.”
Concluded (2)
ZRIZA9, Inc., ZRIZA, LLC, and ZRIZA18, LLC v. Edible Arrangements International, LLC, Edible Arrangements, LLC, EA Connect, LLC and Tariq Farid
settledBrought by a franchisee · filed 2019-12-19 · American Arbitration Association · 01-19- 0004-5629
“… (American Arbitration Association, Case No. 01-19- 0004-5629).”Page 13 of the 2025 FDD, Item 3
Outcome: “We and the claimants formally settled the dispute on February 3, 2021. We and the claimants formally terminated their Franchise Agreements, and we purchased the principal business assets of the claimants’ three stores for a total of $600,000, allowing us to assume ownership and control of their Businesses.”
Hussam Batroukh (Claimant) and Edible Arrangements International, LLC (Respondent)
settledBrought by a franchisee · filed 2015-09-11 · American Arbitration Association · 01-15-0004-4990 and 02-15-0004-9440
“… (American Arbitration Association, filed September 11, 2015, Case numbers 01-15-0004-4990 and 02-15-0004-9440).”Page 13 of the 2025 FDD, Item 3
Outcome: “We settled the dispute with the claimant on December 14, 2015, just before his franchise was scheduled to expire. We and the claimant formally terminated the Franchise Agreement, and a subsidiary of ours purchased the ongoing business, including its principal business assets, from the claimant for their market value of $123,000 and assumed ownership and control of the Edible Business.”
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
- Multiple litigation cases involving non-renewals, contractual breaches, and vendor disputes signal adversarial franchisor-franchisee relationships and legal risk exposure
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?