FDD Items 3 & 4 · 2025 filing
Eggspectation litigation history
What Eggspectation 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
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- $400K
- 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
1 pending action in Montreal by former COO's family trust alleging oppressive conduct and breach of fiduciary duties against CEO Renda and others, seeking dissolution and $2M CAD in damages. 1 concluded action by former Richmond VA franchisee (MKS Group) challenging termination; settled December 2021 with mutual releases and $400K asset purchase.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
CEO Castrenze Renda filed Consumer Proposal under Canadian Bankruptcy and Insolvency Act on December 19, 2012 (Case No. 500-11-044036-131, Montreal). Discharged May 14, 2015.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation involving founder Mr. Renda on oppressive conduct and fiduciary duty breach raises governance and capital allocation concerns
- Prior franchisee bankruptcy and forced asset reacquisition by franchisor signals collection risk and potential franchisee distress
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?