FDD Items 3 & 4 · 2026 filing
Jet’s Pizza litigation history
What Jet’s Pizza 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
- 2
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $222K
- 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
Two disclosed cases: (1) Gregory Joseph Fekin v. Members of Kentucky #3, LLC, et al. (Macomb County Circuit Court, 2021-001643-CB) - breach of contract claim re: promissory note, settled confidentially for $222,250, dismissed Dec 2022; (2) Robert McDonald v. Jet's America, Inc. (Cook County, IL, 2021 CH 00658) - putative class action alleging violations of Illinois Biometric Information Privacy Act (employee thumbprint timekeeping), settled for $9,500 total in 2022.
Item 3 (litigation) · 2 matters disclosed
Litigation cases
The franchisor
Concluded (2)
Gregory Joseph Fekin v. Members of Kentucky #3, LLC., et al.
settledfiled 2022-05-04 · Macomb County Circuit Court · 2021-001643-CB
“… (Macomb County Circuit Court, Case No. 2021-001643-CB). On May 4, 2022, plaintiff brought a claim against Jet’s, two Franchisor-owned franchises, as well as John Jetts, James Galloway, and Amanda”Page 10 of the 2026 FDD, Item 3
Outcome: “on November 21, 2022 the parties entered into a confidential settlement agreement, which provided in pertinent part that Jet’s would pay plaintiff $222,250.00 in exchange for a release of claims.”
Robert McDonald v. Jet’s America, Inc.
settledBrought by a third party · filed 2021-02-10 · Circuit Court of Cook County, Illinois · 2021 CH 00658
“… (Case No. 2021 CH 00658, Circuit Court of Cook County, Illinois). On February 10, 2021, plaintiff, on his own behalf and on behalf of other similarly situated, filed a putative class action complaint against Jet’s,”Page 10 of the 2026 FDD, Item 3
Outcome: “The parties reached a settlement in principle in February 2022. Under the settlement, Jet’s agreed to pay a total of $9,500, inclusive of all costs.”
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
- Two litigation settlements (breach of contract and BIPA class action) indicate operational/legal compliance gaps
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?