FDD Items 3 & 4 · 2026 filing

Federal Injury Centers litigation history

What Federal Injury Centers 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: 5; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $100K; As stated in Item 3

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

Settled dispute with a former franchisee entity ($100,000 payment); ongoing suits by the franchisor against two former franchisees (Dynamic Health Carolinas; Restore Muscle and Joint entities) for breach of contract/post-termination covenants seeking damages of $659,672+ and $917,455+/$86,126 respectively; two state administrative rescission/fine orders (Virginia $1,000 investigation fee + rescission of 2 franchises; Maryland $10,000 fine + rescission offer for 3 franchises, declined) for offering/selling franchises without registration.

Item 3 (litigation) · 5 matters disclosed · 2 pending listed

Litigation cases

The franchisor

Pending (2)

Federal Injury Centers, LLC and OWCP AR and Recovery Specialists, LLC v. Restore Muscle and Joint SL, LLC, Restore Muscle and Joint, LLC, Troy Pearson, Kendra Pearson, Eric Nepute, and Jodee Nepute
pending
Brought against a franchisee · filed 2026-03-05 · U.S. District Court, Middle District of Florida, Tampa Division · 8:26-cv-00590-KKM-AAS
“… U.S. District Court, Middle District of Florida, Tampa Division, Case No. 8:26-cv-00590-KKM-AAS, filed March 5, 2026.”Page 16 of the 2026 FDD, Item 3
Federal Injury Centers, LLC and OWCP AR Recovery Specialists, LLC v. Dynamic Health Carolinas, PLLC, James Patton, Nobleworks Management Group, LLC, Peter Cox and Heidi Cox
pending
Brought against a franchisee · filed 2025-01-21 · U.S. District Court, Middle District of Florida, Tampa Division · 8:25-cv-00166-SDM-CPT
“… U.S. District Court, Middle District of Florida, Tampa Division, Case No. 8:25-cv-00166-SDM – CPT, filed January 21, 2025.”Page 15 of the 2026 FDD, Item 3

Concluded (3)

Federal Injury Treatment Centers of Florida, LLC v. Federal Injury Centers, LLC (State Action); Federal Injury Centers, LLC v. Federal Injury Treatment Center of Florida, LLC (Federal Action)
settled
Brought by a franchisee · filed 2021-09-27 · Circuit Court for the Sixth Judicial Circuit, Pinellas County, Florida; U.S. District Court for the Middle District of Florida · 21-004593-CI; 8:23-cv-0096-KKM-AEP
“Federal Injury Treatment Centers of Florida, LLC v. Federal Injury Centers, LLC, in the Circuit Court for the Sixth Judicial Circuit of Pinellas County, Florida, Case No. 21-004593-CI (the “State Action”);”Page 15 of the 2026 FDD, Item 3
Outcome: “Federal Injury Centers, LLC agreed to pay to Federal Injury Treatment Centers of Florida, LLC an amount equal to $100,000.”
Commonwealth of Virginia, State Corporation Commission v. Federal Injury Centers, LLC
settled
Government or regulatory action · Virginia State Corporation Commission, Division of Securities · SEC-2024-0029
“… Case No. SEC- 2024-0029. As a result of an investigation, the Virginia State Corporation Commission (“SCC”), Division of Securities (“Division”) concluded that we offered”Page 17 of the 2026 FDD, Item 3
In Re: Federal Injury Centers, LLC d/b/a Federal Injury Centers (Securities Commissioner of Maryland)
dismissed
Government or regulatory action · Securities Commissioner of Maryland · 2025-0039
“In Re: Federal Injury Centers, LLC d/b/a Federal Injury Centers, Administrative Proceedings before the Securities Commissioner of Maryland, Case No. 2025-0039.”Page 17 of the 2026 FDD, Item 3
Outcome: “payment of a $10,000 civil monetary fine. All three franchisees declined the rescission offer. Pursuant to a Final Order dated July 16, 2025, the case was dismissed.”

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 trademark disputes, breach of contract, and regulatory actions in Virginia and Maryland

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?

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