FDD Items 3 & 4 · 2025 filing
Frutta Bowls litigation history
What Frutta Bowls 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
- 2
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $3K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Two predecessor (Frutta Bowls Franchising, L.L.C.) regulatory actions: (1) NY AG Assurance of Discontinuance 2018 for selling franchises without registration, including $3,000 payment and rescission offer; (2) Maryland Securities Commissioner Consent Order 2018 for same, with rescission offer to 2 franchisees. Current franchisor discloses no litigation.
Item 3 (litigation) · 2 matters disclosed
Litigation cases
The franchisor and its predecessor
Concluded (2)
In the Matter of Frutta Bowls Franchising, L.L.C. and Brooke Gagliano
concludedGovernment or regulatory action · Frutta Bowls Franchising, L.L.C. · filed 2018 · Attorney General of New York · AOD No. 18-028
“… AOD No. 18-028 (Investigation by Eric T. Schneiderman, the Attorney General of New York).”Page 11 of the 2025 FDD, Item 3
Outcome: “Under the Assurance, we agreed (1) to comply with the New York State Franchise Sales Act, (2) to offer rescission of our agreements to a franchisee, who is a resident of New York, who was granted the right to operate Frutta Bowls outlets outside the State and to return to the franchisee any fees paid, and (3) to pay monetary relief to New York in the amount of $3,000.”
In the Matter of Frutta Bowls Franchising, L.L.C.
concludedGovernment or regulatory action · Frutta Bowls Franchising, L.L.C. · Securities Commissioner of Maryland (administrative proceeding) · 2018-0107
“… Case No. 2018-0107 (Administrative Proceeding Before the Securities Commissioner of Maryland).”Page 11 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.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Predecessor Frutta Bowls Franchising, L.L.C. filed Chapter 11 in U.S. Bankruptcy Court, District of New Jersey (Case No. 19-13230(MBK)) on February 15, 2019. Current entity acquired predecessor assets per Court order dated December 28, 2020.
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?