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FranchiseVerdict

FDD Items 3 & 4 · 2026 filing

InXpress litigation history

What InXpress 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
6
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
2026
Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Six disclosed matters: (1) Harr Advisors v. Mandalorian (garnishment/interpleader dispute, concluded); (2) InXpress v. Mandalorian Industries et al. (trade secrets/breach, default entered, dismissed w/o prejudice 12/2025); (3) Harr Advisors et al. v. InXpress (former franchisees allege fraud/negligent misrep re: Mandalorian transfer, seeking ~$1.6M, in discovery); (4) Hyse Industries Inc. bankruptcy/adversary proceeding naming InXpress and CEO Squadroni (damages sought $2.5-3M); (5) InXpress v. XGS LLC (collection suit, pending default judgment); (6) InXpress v. Toth et al. (collection suit, dismissed w/o prejudice 9/2025).

Item 3 (litigation) · 6 matters disclosed · 3 pending listed

Litigation cases

The franchisor

Pending (3)

  • Hyse Industries Inc. Bankruptcy Proceedings

    pending

    Brought by a franchisee · filed 2026-03-23 · United States Bankruptcy Court for the Western District of Washington · 26-40804-MJH; Adversary Proceeding No. 26-04016-MJH

    “… Case No. 26-40804-MJH filed in the United States Bankruptcy Court for the Western District of Washington on March 23, 2026 and Adversary Proceeding No. 26-04016-MJH, filed in the United States Bankruptcy Court for the Western District of Washington on March 25, 2026.”Page 13 of the 2026 FDD, Item 3
  • Harr Advisors, LLC, et. al. v. InXpress, LLC et. al.

    pending

    Brought by a franchisee · filed 2025-05-15 · Third District Court, Salt Lake County, Utah · 250903845

    “… Civil No. 250903845, originally filed May 15, 2025 in the Third District Court, Salt Lake County, Utah.”Page 12 of the 2026 FDD, Item 3
  • InXpress v. XGS et al

    pending

    Brought against a franchisee · filed 2021 · 3rd District, Utah · 210904867

    “… Civil No. 210904867 (3rd District, Utah), originally filed in 2021. InXpress filed claims against a former franchisee, XGS LLC, a Florida limited liability company and its owners Christopher Hortensi and Carla Hortensi.”Page 13 of the 2026 FDD, Item 3

Concluded (3)

  • Harr Advisors, LLC, a Colorado limited liability company v. Mandalorian Industries, LLC a Colorado limited liability company, dba InXpress 277

    concluded

    filed 2024-01-11 · Third District Court of Salt Lake County, Salt Lake Department, State of Utah · 246901067

    “Harr Advisors, LLC, a Colorado limited liability company v. Mandalorian Industries, LLC a Colorado limited liability company, dba InXpress 277;”Page 11 of the 2026 FDD, Item 3

    Outcome: “This case has concluded and Harr did not file any appeal or motion for reconsideration. InXpress LLC v. Mandalorian Industries, LLC, et. al., Civil No. 240903830, originally filed May 5, 2024 in the Third District Court, Salt Lake County, Utah.” (page 12)

  • InXpress LLC v. Mandalorian Industries, LLC, et. al.

    dismissed

    Brought against a franchisee · filed 2024-05-05 · Third District Court, Salt Lake County, Utah · 240903830

    “… Civil No. 240903830, originally filed May 5, 2024 in the Third District Court, Salt Lake County, Utah.”Page 12 of the 2026 FDD, Item 3

    Outcome: “This case was dismissed without prejudice in December 2025 and InXpress does not intend to refile the lawsuit at this time.”

  • InXpress v. Toth et al

    dismissed

    Brought against a franchisee · filed 2023-05-10 · 3rd District, Utah · 230903339

    “… Civil No. 230903339 (3rd District, Utah), originally filed on May 10, 2023. InXpress filed claims against former franchisee owners Richelyn Toth, Veronica Toth, Cody Toth, and Wayne Toth.”Page 13 of the 2026 FDD, Item 3

    Outcome: “This case was dismissed without prejudice in September 2025 and InXpress does not intend to refile the lawsuit at this time.”

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 active litigation cases (Mandalorian trade secret/breach, XGS and Toth debt collection) indicate franchisee disputes and collection issues

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?