FDD Items 3 & 4 · 2026 filing

JEI Learning Center litigation history

What JEI Learning Center 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: 7; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $205K; As stated in Item 3

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

Franchisor filed 4 lawsuits against franchisees in FY2022 to enforce covenants not-to-compete (all settled); also a 2013 Maryland Consent Order required predecessor JSLS to cease/desist unregistered franchise offers and pay a $15,000 civil penalty.

Item 3 (litigation) · 7 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (7)

JEI Learning Centers, LLC v. Elsie Koo
settled
Brought against a franchisee · filed 2022-06-29 · California Superior Court for the County of Los Angeles, Central District · 22STCV21102
“… California Superior Court for the County of Los Angeles, Central District, Case No. 22STCV21102 (June 29, 2022).”Page 13 of the 2026 FDD, Item 3
JEI Learning Centers, LLC v. Jennifer Ahn et al.
settled
Brought against a franchisee · filed 2022-02-10 · California Superior Court for the County of Los Angeles, Central District · 22STCV05098
“… California Superior Court for the County of Los Angeles, Central District, Case No. 22STCV05098 (February 10, 2022).”Page 13 of the 2026 FDD, Item 3
JEI Learning Centers, LLC v. Sivakumar Natarajan
settled
Brought against a franchisee · filed 2022-06-29 · California Superior Court for the County of Los Angeles, Central District · 22STVC21127
“… California Superior Court for the County of Los Angeles, Central District, Case No. 22STVC21127 (June 29, 2022).”Page 14 of the 2026 FDD, Item 3
JEI Learning Centers, LLC v., Rajesh Ravilla and Rista International, Inc.
settled
Brought against a franchisee · filed 2022-06-29 · California Superior Court for the County of Los Angeles, Central District · 22STVC21118
“… California Superior Court for the County of Los Angeles, Central District, Case No. 22STVC21118 (June 29, 2022).”Page 14 of the 2026 FDD, Item 3
Daekyo America, Inc. v. Joshua Gunsberger; and JEI Self Learning Systems, Inc.
settled
Brought by a third party · JEI Self-Learning Systems, Inc. (JSLS) · filed 2015-05-14 · Supreme Court of New York, County of Kings · 505946/2015
“… Supreme Court of New York, County of Kings, Index No. 505946/2015.”Page 13 of the 2026 FDD, Item 3
Daekyo America, Inc. v. One Hundred Center, Inc.; Albert E. Diaz; Manish Vakil; JEI Self- Learning Systems, Inc.; and Eugene Ahn
settled
Brought by a third party · JEI Self-Learning Systems, Inc. (JSLS) · filed 2015-03-06 · Superior Court of New Jersey, Law Division · BER- L-5025-15
“… Superior Court of New Jersey, Law Division, Docket No. BER- L-5025-15.”Page 12 of the 2026 FDD, Item 3
Outcome: “JSLS and Ahn denied any wrongdoing and did not admit any liability but agreed to pay $205,000 to Daekyo to settle the matter.” (page 13)
Daekyo America, Inc. v. Ruth Yong; Palm Academy, Inc.; and JEI Self-Learning Systems, Inc.
settled
Brought by a third party · JEI Self-Learning Systems, Inc. (JSLS) · filed 2015-03-27 · Superior Court of New Jersey, Law Division · BER-L-5025-15
“… Superior Court of New Jersey, Law Division Docket No. BER-L-5025-15.”Page 13 of the 2026 FDD, Item 3

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

History of litigation including trade secret misappropriation by predecessor (Daekyo America) and unregistered franchise sales violations suggests compliance and IP protection vulnerabilities

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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