FDD Items 3 & 4 · 2026 filing
Hertz litigation history
What Hertz disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
- 30
- Item 3, as counted in the filing
- Largest disclosed settlement
- $20.0M
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
No pending or prior actions directly against Hertz System, Inc. as franchisor. Numerous cases involving parent The Hertz Corporation and affiliates, including class action settlements, franchise termination disputes, international subfranchisee trademark actions, and post-bankruptcy litigation. Largest settlement was $20 million (Moretti v. Hertz). Company emerged from Chapter 11 bankruptcy June 30, 2021.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
On May 22, 2020, Hertz System, Inc., The Hertz Corporation, and certain U.S. and Canadian affiliates filed for Chapter 11 bankruptcy (Case No. 20-11240 for Hertz System, Inc.) in the U.S. Bankruptcy Court for the District of Delaware. Emerged from bankruptcy June 30, 2021.
Disclosure signals that moved the score
How this shows up in the verdict
- Going Concern status is False — indicates parent company financial distress or bankruptcy risk
- Extensive litigation including bankruptcy claims, consumer protection violations, deceptive advertising, and securities cases — reputational and legal exposure
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?