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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

GoMobile Tires litigation history

What GoMobile Tires 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
1
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

California Consent Order (2020): DFPI found affiliates offered 4 unregistered franchises in CA; $2,000 administrative penalty paid; matters resolved

Item 3 (litigation) · 1 matter disclosed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

  • California Consent Order, FIL ORG ID: 365468

    concluded

    Government or regulatory action · GoMobileTires USA, LLC and USA GoMobile, Inc. (and Derek Naidoo) · filed 2020-07-21 · California Department of Financial Protection and Innovation · 365468

    “… On July 21, 2020, the California Department of Financial Protection and Innovation (“DFPI”) (formerly known as the California Department of Business Oversight) and our affiliates, GoMobileTires USA, LLC and USA”Page 8 of the 2025 FDD, Item 3

    Outcome: “... Code section 31110, unless and until the offers have been duly registered under the FIL or are otherwise exempt; (2) Respondents were ordered to pay an administrative penalty in the total amount of $2,000.00 for violations of Corporations Code section 31110 within 60 days from the effective date of the Consent Order; (3) Derek Naidoo and all persons employed by the Respondents who will assist in ...”

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?