FDD Items 3 & 4 · 2023 filing
Freshii litigation history
What Freshii disclosed about lawsuits, arbitrations and bankruptcy in the 2023 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2023
- Disclosures cover the prior ten years
Extracted from the 2023 Franchise Disclosure Document
Item 3: litigation
Two arbitration matters: (1) 2512549 Ontario Inc. v. Lettuce Eatery Canada (affiliate) — breach of contract re territory, settled Feb 2022; (2) Kore Meals, LLC v. Freshii Development, LLC and Freshii, Inc. — breach of Development Agent Agreement, settled Feb 2023. No litigation against franchisees in 2022.
Disclosure signals that moved the score
How this shows up in the verdict
- Going Concern warning signal suggests franchisor may face viability issues; combined with unit decline, raises questions about long-term support and system sustainability
- Two breach of contract litigations (Lettuce Eatery Canada affiliate and Kore Meals/Freshii Development) indicate internal conflicts, partner disputes, and potential franchisor-franchisee 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?