FDD Items 3 & 4 · 2025 filing
Grand Welcome litigation history
What Grand Welcome 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
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Ramsey et al. v. Grand Welcome Franchising LLC, et al.
pendingBrought by a franchisee · filed 2024-06-06 · Clark County, NV · A-24-894804-B
“… (Case No. A-24-894804-B, Clark County, NV): On June 6, 2024, a former franchisee filed suit against us, alleging breach of contract and other causes of action, following the franchisee’s sale of its franchise to a third-party.”Page 9 of the 2025 FDD, Item 3
Concluded (2)
Breitlow v. Grand Welcome Franchising, LLC et al.
dismissedBrought by a franchisee · filed 2024-02-15 · Orange County, Florida · 4:24-cv-01107-KGB
“… (Case No. 4:24-cv-01107-KGB, Orange County, Florida): On February 15, 2024, a franchisee filed a lawsuit against us alleging breach of contract, fraud, and other causes of action, seeking monetary damages and a declaratory judgment that the franchisee could operate independent of the franchise agreement.”Page 9 of the 2025 FDD, Item 3
Grand Welcome Franchising, LLC v. Kevin Allen, et al.; Arkansas Vacation Rental Property Management, Inc. et al. v. Grand Welcome Franchising, LLC et al.
settledBrought against a franchisee · filed 2024-08-08 · U.S. District Court, District of Nevada; U.S. District Court, Eastern District of Arkansas · 2:24-cv-01462
“Grand Welcome Franchising, LLC v. Kevin Allen, et al. (Case No. 2:24-cv-01462, U.S. District Court, District of Nevada); and Arkansas Vacation Rental Property Management, Inc. et al. v. Grand Welcome Franchising, LLC et al.”Page 9 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.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigation cases including pending breach of contract action indicate franchisor-franchisee relationship deterioration
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?