FDD Items 3 & 4 · 2026 filing
Fantastic Sams litigation history
What Fantastic Sams 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
- 7
- 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
1 pending arbitration (Fantastic Sams v. Yeretsyan, post-expiration non-compete, settled) and 5 prior actions: Linco/Martinez/Oppegaard (non-compete/trademark, settled with new franchise agreement); KAK Enterprises/Khan (non-compete, salon ceased operating); Eridon Enterprises/Hardaway (default/closure, counterclaims for breach/negligence/fraud, settled for $90,000 paid to franchisor); HopeWorks/Vasant (default/closure, counterclaims and separate CA state suit alleging misrepresentation, settled for $50,000 paid to franchisor); Halter/CMH Ventures (franchisee sought to invalidate non-compete, settled via amendment requiring franchisee to pay $25,000); F.S. Salons Sandy Springs/Stafford (non-compete violation, counterclaims for breach of contract/FTC Act/state consumer protection, settled for $53,500 paid to franchisor).
Item 3 (litigation) · 7 matters disclosed · 2 pending listed
Litigation cases
The franchisor
Pending (2)
Fantastic Sams Franchise Corporation v. Maral Yeretsyan
pendingBrought against a franchisee · filed 2026-02-13 · American Arbitration Association · 01-26-0000-7469
“… A.A.A., Case No. 01-26-0000-7469. On February 13, 2026, we filed an arbitration with the American Arbitration Association alleging that Respondent, a former franchisee located in California whose”Page 11 of the 2026 FDD, Item 3
Fantastic Sams Franchise Corp. v. KAK Enterprises, LLC and Khurram A. Khan
pendingBrought against a franchisee · filed 2025-04-02 · American Arbitration Association · 01-25-0001-6654
“… AAA Case No. 01-25- 0001-6654. On April 2, 2025, we filed an arbitration with the American Arbitration Association, alleging that respondents, former franchisees, were in violation of”Page 12 of the 2026 FDD, Item 3
Concluded (5)
Fantastic Sams Franchise Corp. v. Linco, LLC, Linda Martinez f/k/a Linda Oppegaard, and Darren Oppegaard
settledBrought against a franchisee · filed 2025-04-01 · U.S. District Court for the District of Colorado · 25-cv-01042-KAS
“… Case No. 25-cv-01042-KAS (D. Colo.).”Page 11 of the 2026 FDD, Item 3
Outcome: “Martinez and Linco, LLC and we have entered into a settlement in which they agreed to sign a new franchise agreement and to operate as a Fantastic Sams.” (page 12)
Fantastic Sams Franchise Corporation v. F.S. Salons Sandy Springs, LLC, FS Salons Store #2, LLC, FS Salons Store #3, LLC, and Todd A. Stafford
settledBrought against a franchisee · filed 2018-08-29 · American Arbitration Association · 01-18-0003-1581
“… AAA Case No. 01-18-0003-1581, filed on August 29, 2018, before the American Arbitration Association in Boston, Massachusetts.”Page 13 of the 2026 FDD, Item 3
Sharon Halter and CMH Ventures One, LLC v. Fantastic Sams Franchise Corporation
settledBrought by a franchisee · filed 2018-03-29 · American Arbitration Association · 01-18-0001-3212
“… AAA Case No. 01- 18-0001-3212, filed on March 29, 2018, before the American Arbitration Association in Boston,”Page 12 of the 2026 FDD, Item 3
Fantastic Sams Franchise Corporation v. Eridon Enterprises, Inc. and Eric Hardaway
settledBrought against a franchisee · filed 2017-01-14 · American Arbitration Association · 01-17-0000-3092
“… AAA Case No. 01- 17-0000-3092, filed January 14, 2017, before the American Arbitration Association in Boston, Massachusetts.”Page 12 of the 2026 FDD, Item 3
Fantastic Sams Franchise Corporation v. HopeWorks, LLC, Asha Vasant, and Umar Latif; Hope Works and Vasant v. FSFC, Fantastic Sams Salons Corporation, and John Does 1-10
settledBrought against a franchisee · filed 2017-05-10 · American Arbitration Association; Superior Court of the State of California, Orange County · AAA 01-17-0002-7304; 30-2017-00958860
“Fantastic Sams Franchise Corporation v. HopeWorks, LLC, Asha Vasant, and Umar Latif AAA Case No. 01-17-0002-7304, filed on May 10, 2017, before the American Arbitration Association (“AAA”) in Boston, Massachusetts.”Page 12 of the 2026 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
- Ongoing litigation over disclosure adequacy suggests franchisor may have misrepresented opportunity to previous franchisees — risk of similar claims against new franchisee
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?