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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Fyzical litigation history

What Fyzical 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
3
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$50K
As stated in Item 3
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

Three disclosed cases: (1) Merissa Kihnke (former in-house counsel) whistleblower retaliation claims, first case dismissed without prejudice, refiled with franchisor counterclaim pending; (2) Dr. Christopher Mulvey whistleblower retaliation suit, stayed pending Florida Supreme Court decision; (3) PG Therapy LLC (franchisee) breach of contract/misrepresentation suit, settled January 2026 with franchisor paying $50,000.

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

Litigation cases

The franchisor

Pending (2)

  • Dr. Christopher Mulvey v. FYZICAL, LLC

    pending

    Brought by a third party · filed 2024-09-05 · U.S. District Court, Middle District of Florida · 2:24-cv-00372

    “… (Case No. 2:24-cv-00372 (United States District Court, Middle District of Florida)).”Page 15 of the 2025 FDD, Item 3
  • Merissa Kihnke v. FYZICAL, LLC and FYZICAL Acquisition Holdings, LLC

    pending

    Brought by a third party · filed 2023-09-20 · Circuit Court of the Twelfth Judicial Circuit, Sarasota County, Florida · 2023 CA 006891 NC; 2025 CA 004020 NC

    “… (Case No. 2023 CA 006891 NC (Circuit Court of the Twelfth Judicial Circuit, Sarasota County, Florida)).”Page 14 of the 2025 FDD, Item 3

Concluded (1)

  • PG Therapy LLC v. FYZICAL, LLC

    settled

    Brought by a franchisee · filed 2024-08-24 · Twelfth Judicial Circuit, Sarasota County, Florida · 24-CA-004357

    “… (Case No.: 24-CA-004357 (Twelfth Judicial Circuit in and for Sarasota County, Florida)). On August 24, 2024, PG Therapy LLC, a franchisee of FYZICAL, filed a complaint asserting causes of action for breach of contract,”Page 15 of the 2025 FDD, Item 3

    Outcome: “the parties entered into a mutual settlement and release agreement pursuant to which we paid $50,000 to the plaintiff. Other than these actions, no litigation is required to be disclosed in this Item ITEM 4.”

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.

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?