FDD Items 3 & 4 · 2025 filing

Fitness Machine Technicians FMT litigation history

What Fitness Machine Technicians FMT 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: 5; 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

5 predecessor/affiliate matters: 4 regulatory consent orders against TMA Franchise Systems (predecessor to Mosquito Authority) for franchise registration violations in Maryland (2013), Rhode Island (2013), Virginia (2015), and Minnesota (2017); plus 1 Soccer Shots affiliate assurance of discontinuance re no-poaching provisions (2019). No pending litigation for current franchisor.

Item 3 (litigation) · 5 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (4)

In the Matter of TMA Franchise Systems, Inc.
concluded
Government or regulatory action · TMA Franchise Systems, Inc. · Securities Division of the Office of the Attorney General of Maryland · 2013-0198
“… Case No. 2013-0198. On August 21, 2013, TMA entered into a Consent Order with the Securities Division of the Office of the”Page 12 of the 2025 FDD, Item 3
Outcome: “By the terms of the Consent Order, TMA agreed to i) permanently cease and desist from the offer and sale of franchises in violation of the Maryland Franchise Law;”
In the Matter of TMA Franchise Systems, Inc. d/b/a The Mosquito Authority
concluded
Government or regulatory action · TMA Franchise Systems, Inc. d/b/a The Mosquito Authority · Minnesota Department of Commerce · File No. 47341
“… Case No. File No. 47341. On August 11, 2017, TMA entered into a Consent Order with the Minnesota”Page 12 of the 2025 FDD, Item 3
Outcome: “By the terms of the Consent Order, TMA agreed to pay a monetary penalty of $1,000 to the Department of Commerce, disclose this Consent Order in this Franchise Disclosure” (page 13)
In the Matter of TMA Franchise Systems, Inc. d/b/a The Mosquito Authority and Joseph D. Osborne
concluded
Government or regulatory action · TMA Franchise Systems, Inc. d/b/a The Mosquito Authority · Virginia State Corporation Commission Division of Securities and Retail Franchising · SEC-2015-00002
“… Case No. SEC-2015-00002. On June 18, 2015, TMA entered into a Settlement Order”Page 12 of the 2025 FDD, Item 3
Outcome: “By the terms of the Settlement Order, TMA agreed to pay a monetary penalty of $20,000 and administrative costs of $2,500 to the Division, provide a copy of the Order to”
In the Matter of TMA Franchising, Inc.
concluded
Government or regulatory action · TMA Franchising, Inc. · Rhode Island Department of Business Regulation
“… On October 9, 2013, TMA entered into a Consent Agreement with the Rhode Island Department of Business Regulation to resolve”Page 12 of the 2025 FDD, Item 3
Outcome: “By the terms of the Consent Agreement, TMA agreed to submit an initial franchise application in accordance with Rhode Island franchise law, provide an offer of”

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

In Re: Franchise No Poaching Provisions (Soccer Shots Franchising, LLC)
concluded
Government or regulatory action · Soccer Shots Franchising, LLC · State of Washington, Office of the Attorney General (Assurance of Discontinuance) · 19-2-28301-7 SEA
“… Case No. 19-2-28301- 7 SEA. On or about October 28, 2019, Soccer Shots Franchising, LLC entered into an”Page 13 of the 2025 FDD, Item 3
Outcome: “On January 2, 2020, Soccer Shots Franchising, LLC confirmed in writing its compliance with the AOD to the State of Washington. Other than the above 5 actions,”

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

Affiliate litigation (Soccer Shots no-poaching settlement) indicates corporate culture issues with restrictive covenants that may impact franchisee autonomy

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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