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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Green Motion litigation history

What Green Motion 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 & 4 at a glance

What the filing discloses

Cases disclosed
1
Item 3, as counted in the filing
Largest disclosed settlement
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

One action: 50154444 Ontario Inc. v. Green Motion Limited and officers (including CEO Richard Lowden) alleging violations of Ontario franchise disclosure law (Arthur Wishart Act). Filed May 2019, involves parent company not the US franchisor. As of last fiscal year end, informal confirmation that suit will be discontinued.

Disclosure signals that moved the score

How this shows up in the verdict

  • Active litigation alleging Ontario franchise law violations by parent company Green Motion Limited creates legal and reputational risk despite claimed discontinuation
  • Going Concern status 'False' is ambiguous—unclear if this means no going concern issues or if going concern issues exist

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?