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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

I Love Kickboxing litigation history

What I Love Kickboxing 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
5
Item 3, as counted in the filing
Largest disclosed settlement
$1.2M
As stated in Item 3
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

5 matters: 3 franchise fraud/misrepresentation suits against predecessors (ILKB LLC and ILKB TOO LLC), 1 Washington State governmental cease-and-desist action against ILKB LLC, and 1 JAMS arbitration award of $1,184,594 against predecessor ILKB LLC. All predecessor matters; franchisor (9Round Holding) itself not a defendant.

Disclosure signals that moved the score

How this shows up in the verdict

  • Going concern status is FALSE, suggesting the franchisor itself may be financially unstable or unable to continue operations
  • Multiple litigations including Franchise Sales Act violations, fraud/misrepresentation claims, and state cease-and-desist order from Washington demonstrate regulatory and legal credibility issues
  • Cumulative litigation against predecessors AND current entity suggests pattern of compliance failures rather than isolated incidents

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?