FDD Items 3 & 4 · 2025 filing
EXIT Realty litigation history
What EXIT Realty 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
- 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
1 subfranchisor case (Everyday Grace LLC v. Josvla Inc.); 5 franchisor cases including Evans v. EXIT (commission dispute, settled as to EXIT), 71353 Newfoundland v. EXIT (breach of contract $2.5M claim), McFall v. Canadian REA et al. (MLS buyer brokerage class action), Gibson v. NAR et al. (U.S. MLS commissions class action), Wallerstein v. EXIT (robocall TCPA class action)
Item 3 (litigation) · 6 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Don Gibson, et al., v. National Association of Realtors, et al.
pendingBrought by a third party · filed 2024-04-25 · United States District Court for the Western District of Missouri · 4:23-cv-00788-SRB
“… United States District Court for the Western District of Missouri, Civil Action No. 4:23-cv-00788-SRB, filed April 25, 2024.”Page 11 of the 2025 FDD, Item 3
Concluded (1)
Bruce Evans v. Christy Dwyer, EXIT Realty Lake Country, EXIT Realty Corp. International, et al.
settledBrought by the franchisor · filed 2022-12-29 · Superior Court Hart County, Georgia · 22-HV-00484
“… Superior Court Hart County, Georgia, Case No. 22-HV-00484, filed December 29, 2022.”Page 10 of the 2025 FDD, Item 3
Outcome: “Evans’ claim was dismissed against EXIT as part of a settlement on September 30, 2024; however, EXIT continues to pursue its indemnity claims against EXIT’s franchisee and guarantors. 71353 Newfoundland & Labrador Inc. and Baushape Design, Inc. v. EXIT Realty Corp. International.”
Status not stated in the filing (3)
Gregory Wallerstein v. EXIT Realty Corp. International
Brought by a franchisee · filed 2024-06-07 · United States District Court for the District of Columbia · 24-CV-01653-RDM
“… United State District Court for the District of Columbia, Case No. 24-CV-01653-RDM, filed June 7, 2024.”Page 11 of the 2025 FDD, Item 3
Kevin McFall v. Canadian Real Estate Association et. al.
Brought by a third party · filed 2024-01-18 · Federal Court of Canada · T-119-24
“… Federal Court of Canada, Court File No. T-119-24, filed January 18, 2024.”Page 11 of the 2025 FDD, Item 3
71353 Newfoundland & Labrador Inc. and Baushape Design, Inc. v. EXIT Realty Corp. International
filed 2016-12-06 · Ontario, Canada Superior Court of Justice · CV-16-565447
“… Ontario, Canada Superior Court of Justice, Case No. CV-16-565447, filed December 6, 2016.”Page 10 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Status not stated in the filing (1)
Everyday Grace LLC v. Key Players LLC, Josvla Inc., MJR Grace Group, LLC, Melly Rosario, and Hector Castillo
Brought by a franchisee · Josvla Inc. (EXIT NY METRO, the Subfranchisor) and Hector Castillo · filed 2024 · Supreme Court of New York, Suffolk County · 600849/2024
“… Index No. 600849/2024 (Sup. Ct., Suffolk County 2024).”Page 10 of the 2025 FDD, Item 3
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 breach of contract, tortious interference, and commission disputes suggest franchisor-franchisee relationship tensions and possible operational/contractual 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?