FDD Items 3 & 4 · 2025 filing
Heights Wellness Retreat litigation history
What Heights Wellness Retreat 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)
- Disclosed · an officer
- 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 prior actions disclosed: Hayes v. Massage Heights (arbitration, 2019, franchisee awarded $344,933 after mutual breach finding, settled 2024); Busch Management Group v. Massage Heights (Texas court, 2020, settled with area rep agreement termination); Massage Heights v. Relax Investments (arbitration, 2018, respondent awarded $88,137.50 plus renewal rights). All resolved.
Item 3 (litigation) · 3 matters disclosed
Litigation cases
The franchisor
Concluded (3)
Busch Management Group, LLC v. Massage Heights Franchising, LLC
settledfiled 2020-04-15 · District Court of Harris County, Texas, 157th Judicial District · 2020-23498
“… (No. 2020-23498) (District Court of Harris County, Texas, 157th Judicial District).”Page 13 of the 2025 FDD, Item 3
Outcome: “On or about July 28, 2020, the area representative dismissed all claims in the lawsuit with prejudice. Massage Heights Franchising, LLC v. Relax Investments, LLC, Steven McFadden, and Trisha McFadden (1-18-0002-7596), Demand for Arbitration (filed July 19, 2018).”
Hayes v. Massage Heights Corporate, LLC
judgmentBrought by a franchisee · filed 2019-12-02 · Demand for Arbitration · 01-19-0004-2416
“… (01-19-0004-2416), Demand for Arbitration (filed Dec. 2, 2019). A Florida franchisee filed an arbitration demand against MH Franchising, alleging breach of contract, fraud in the inducement, fraud, fraudulent concealment, and misrepresentation relating to the accommodation of the franchisee’s hearing disability.”Page 13 of the 2025 FDD, Item 3
Outcome: “On October 4, 2024, franchisee signed a release acknowledging satisfaction of the promise to pay agreement. Busch Management Group, LLC v. Massage Heights Franchising, LLC (No. 2020-23498) (District Court of Harris County, Texas, 157th Judicial District).”
Massage Heights Franchising, LLC v. Relax Investments, LLC, Steven McFadden, and Trisha McFadden
judgmentBrought by the franchisor · filed 2018-07-19 · Demand for Arbitration (San Antonio, Texas) · 1-18-0002-7596
“… (1-18-0002-7596), Demand for Arbitration (filed July 19, 2018).”Page 13 of the 2025 FDD, Item 3
Outcome: “On August 21, 2019, the arbitrator found the Area Development Agreement was subject to renewal and awarded Respondent attorneys’ fees, expenses, and other relief, offset by the renewal fee owed to us for a total damage award of $88,137.50.”
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
Julia (Julie) Green, VP of Marketing, filed Chapter 13 bankruptcy in 2019 (Eastern District of NC, Docket 19-02644-5-DMW) due to unforeseen employment changes; discharged August 8, 2024.
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?