FDD Items 3 & 4 · 2026 filing
European Wax Center litigation history
What European Wax Center 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 6
- 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
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Pending: putative class action re: website communications interception (settlement fund cap $5,000,000, court-approved 2026); franchisee (EWC Michigan Management) dispute re: POS system access/termination. Prior: vendor trade-secret suit settled $179,000; parent-entity ownership dispute settled $140,000,000; franchisee arbitration re: wrongful termination settled $400,000. Governmental: WA AG investigation into no-poach provisions, resolved via Assurance of Discontinuance with no fines.
Item 3 (litigation) · 6 matters disclosed · 2 pending listed
Litigation cases
The franchisor and its predecessor
Pending (1)
EWC Michigan Management, Inc. v. EWC Franchise, LLC
pendingBrought by a franchisee · EWC Franchise, LLC · filed 2026-03-30 · Circuit Court of Wayne County, Michigan; removed to the United States District Court, Western District of Michigan · 2026-005737-CB; 26-cv-11284
“… Case No. 2026-005737-CB (Circuit Court of Wayne County, Michigan); Case No. 26-cv-11284 (United States District Court, Western District”Page 16 of the 2026 FDD, Item 3
Outcome: “the Company removed the action to federal court, where it is currently”
Concluded (3)
Worley Wax, LLC and Kelly Worley v. EWC Franchise, LLC
concludedBrought by a franchisee · EWC Franchise, LLC · filed 2021-06-11 · American Arbitration Association · 01-21-0004-2691
“… AAA Reference No. 01-21-0004-2691 (American Arbitration Association, Filed June 11, 2021).”Page 16 of the 2026 FDD, Item 3
Outcome: “On December 23, 2021, EWC Franchise, LLC and Worley entered into settlement agreement, pursuant to which EWC Franchise, LLC agreed to pay $400,000 to Worley, in” (page 17)
Within this matter, as the filing narrates it
EWC Franchise, LLC v. Renew Waxing Center, LLC d/b/a Pride Wax and Thandar Hlaing
concludedBrought by the franchisor · names a predecessor · EWC Franchise, LLC · Circuit Court for Pinellas County, Florida · 21-005630-CI
“EWC Franchise, LLC filed a Complaint against Renew Waxing Center, LLC d/b/a Pride Wax and its owner, Thandar Hlaing, in the Circuit Court for Pinellas County, Florida (Case No.”Page 16 of the 2026 FDD, Item 3
Outcome: “to dismiss with prejudice the lawsuit against Renew Waxing Center, LLC d/b/a Pride Wax and Thandar Hlaing in the Circuit Court” (page 17)
Counted as one matter, the way Item 3 groups it.
In Re Franchise No Poaching Provisions Investigation by the Office of the Attorney General, State of Washington
concludedGovernment or regulatory action · filed 2018-09-10 · Office of the Attorney General, State of Washington; Assurance of Discontinuance approved by the King County Superior Court
“… Issued September 10, 2018.”Page 17 of the 2026 FDD, Item 3
Outcome: “On September 9, 2019, the King County Superior Court approved our Assurance of Discontinuance and closed the”
Prince Development, LLC d/b/a Prince Reigns v. European Wax Center, Inc. and Joshua Coba
concludedBrought by a third party · European Wax Center, Inc. n/k/a DJNG, Inc. and Joshua Coba (officer) · filed 2012-08-23 · Broward County, Florida, 17th Judicial Circuit · 12-23961
“… Case No. 12-23961 (Broward County, Florida, 17th Judicial”Page 16 of the 2026 FDD, Item 3
Outcome: “In May 2016, the parties settled all remaining claims, and the court issued its Order of Dismissal Based On Settlement, on June 1, 2016.”
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
Sydney Dunn, individually and on behalf of all others similarly situated v. European Wax Center, Inc.
pendingBrought by a third party · European Wax Center, Inc. · filed 2025-06-30 · United States District Court, Northern District of California · 4:25-cv-05494-JST
“… Case No. 4:25- cv-05494-JST (United States District Court, Northern”Page 15 of the 2026 FDD, Item 3
Outcome: “The settlement agreement was approved by the court in April 2026 and is currently in the process of being administered.” (page 16)
Concluded (1)
EWC Holdings, Inc. v. Princeton Ventures II, LLC, Brazos/EWC, LLC
concludedEWC Holdings, Inc. (majority interest holder of parent EWC Ventures, LLC) · filed 2016-06-28 · Court of Chancery of the State of Delaware · 12519
“… Case No. 12519 (Court of Chancery of the State of Delaware”Page 16 of the 2026 FDD, Item 3
Outcome: “We were not a party in the lawsuit.”
One proceeding above is indented under the matter it belongs 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 6 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.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigations including governmental investigation into non-poaching provisions indicate compliance/culture risks
- Franchise termination arbitration (Worley Wax) and vendor disputes signal operational/relationship friction
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?