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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 5; 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

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.

Item 3 (litigation) · 5 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (4)

Matter with no printed caption
concluded
Government or regulatory action · ILKB LLC (with FC Oline Marketing, Inc. and Michael Alan Parella) · filed 2024-01-30 · State of Washington Department of Financial Institutions Securities Division · S-19-2812- 23-SC01
“On January 30, 2024, the State of Washington Department of Financial Institutions Securities Division issued Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Order No. S-19-2812- 23-SC01 to ILKB LLC, FC Oline Marketing, Inc, and Michael Alan Parella.”Page 12 of the 2025 FDD, Item 3
Roddie McDowall, Teresa Hatter McDowall, and Transcending Future Legacy v. ILKB LLC, Michael Parrella, ILKB TOO, LLC, Daniel Castellini, and Shaun York
judgment
Brought by a franchisee · ILKB TOO LLC and ILKB, LLC · filed 2020-12-20 · United States District Court, Eastern District of New York · 2:20-cv-06171
“Roddie McDowall, Teresa Hatter McDowall, and Transcending Future Legacy v. ILKB LLC, Michael Parrella, ILKB TOO, LLC, Daniel Castellini, and Shaun York;”Page 12 of the 2025 FDD, Item 3
Thomas Callen, Courtney Callen, and Golden Polar Bear, LLC v. ILKB LLC, Michael Parrella, Ryan Healy, Scott Ferrari, ILKB TOO, LLC, Daniel Castellini, and Shaun York
dismissed
Brought by a franchisee · ILKB TOO LLC and ILKB, LLC · filed 2020-07-24 · United States District Court, Eastern District of New York · 2:20-cv-03345
“Thomas Callen, Courtney Callen, and Golden Polar Bear, LLC v. ILKB LLC, Michael Parrella, Ryan Healy, Scott Ferrari, ILKB TOO, LLC, Daniel Castellini, and Shaun York;”Page 12 of the 2025 FDD, Item 3
The Orange Rabbit, LLC, Nicholas Giacopelli v. ILKB, LLC, Michael Parella, Ryan Healy, and Scot Ferrari
judgment
Brought by a franchisee · ILKB, LLC · filed 2019-03-27 · JAMS Resolution Center, New York (arbitration) · 1425029384
“… JAMS No. 1425029384.”Page 13 of the 2025 FDD, Item 3

Status not stated in the filing (1)

Roger Gould and Dolphin Kickboxing Company v. ILKB LLC, Michael Parrella, Ryan Healy, Scott Ferrari, ILKB TOO, LLC, Daniel Castellini, and Shaun York
Brought by a franchisee · ILKB TOO LLC and ILKB, LLC · filed 2020-10-26 · United States District Court, Eastern District of New York · 2:20cv-05154
“Roger Gould and Dolphin Kickboxing Company v. ILKB LLC, Michael Parrella, Ryan Healy, Scott Ferrari, ILKB TOO, LLC, Daniel Castellini, and Shaun York;”Page 12 of the 2025 FDD, Item 3
Outcome: “On September 26, 2024, the Court granted ILKB TOO LLC’s summary judgment motion and the case against our predecessor (IKKB TOO, LLC) was closed.”

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 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?

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