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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 6
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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).
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
- Going concern status is FALSE — critical governance/financial stability issue
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?