FDD Items 3 & 4 · 2025 filing

Jimmy John's litigation history

What Jimmy John's 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: 14; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $1.8M; As stated in Item 3

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

11 disclosed cases involving JJF and related entities including class actions (alfalfa sprouts, data breach, overtime/FLSA, non-compete agreements, cookie labeling), franchisee arbitrations (CWL Investments transfer dispute, C&C Resources non-renewal), and biometric privacy suit. Most cases settled. One pending (C&C Resources liability phase; Dominick Polizzi biometric case). Three additional affiliate disclosure cases (Arby's and Dunkin' no-poaching provisions, Dunkin' data breach) included in Item 3.

Item 3 (litigation) · 14 matters disclosed · 2 pending listed

Litigation cases

The franchisor

Pending (1)

C&C Resources, Inc. v. Jimmy John’s Franchise, LLC
pending
Brought by a franchisee · filed 2021-08-16 · American Arbitration Association · 01-21-0016-1707
“… (American Arbitration Association Case No. 01-21-0016-1707). On August 16, 2021, C&C Resources, Inc. and Carl Dissette (“Claimants”), a franchisee and its owner, filed a Demand and Request for Emergency Relief”Page 26 of the 2025 FDD, Item 3
Outcome: “The interim award resolves the liability issues, with a future hearing to be scheduled to address damages and attorneys’ fees.”

Concluded (9)

Erwin v. Jimmy John’s LLC, et al.
settled
filed 2020-10-01 · United States District Court for the Southern District of Illinois (removed from the Circuit Court of St. Clair County, Illinois) · 3:20-cv-1268
“… (United States District Court for the Southern District of Illinois, Case No. 3:20-cv-1268).”Page 25 of the 2025 FDD, Item 3
Outcome: “On September 23, 2021, the parties, along with the plaintiff in the Martin v. Jimmy John’s Franchise, LLC, et al. mentioned above, entered into a Confidential Settlement Agreement and Release under which JJF and Jimmy John’s LLC agreed to pay all plaintiffs under both cases collectively a one-time settlement of $690,000,”
Martin v. Jimmy John’s Franchise, LLC, et al.
settled
filed 2020-01-04 · United States District Court for the Western District of Missouri (removed from the Circuit Court of Jackson County, Missouri) · 4:20-cv-00415-RK
“… (United States District Court for the Western District of Missouri, Case No. 4:20-cv-00415-RK).”Page 25 of the 2025 FDD, Item 3
Outcome: “On September 23, 2021, the parties, along with the plaintiffs in the Erwin v. Jimmy John’s LLC, et al. mentioned below, entered into a Confidential Settlement Agreement and Release under which JJF and Jimmy John’s LLC agreed to pay all plaintiffs under both cases collectively a one-time settlement of $690,000,”
Patel v. Jimmy John’s Franchise, LLC
settled
Brought by a franchisee · filed 2020-09-08 · Circuit Court of Cook County, Law Division · 2020 L 009628
“… (Circuit Court of Cook County, Law Division, Case No. 2020 L 009628).”Page 25 of the 2025 FDD, Item 3
Outcome: “On September 14, 2021, the parties entered into a Settlement Agreement and Mutual Release under which JJF committed to pay Franchisee a one-time payment of $10,000” (page 26)
Conrad v. Jimmy John’s Franchise, LLC, et al.
settled
filed 2018-01-24 · United States District Court for the Southern District of Illinois, East St. Louis Division · 3:18-cv-00133
“… (United States District Court for the Southern District of Illinois, East St. Louis Division, Case No. 3:18-cv-00133).”Page 24 of the 2025 FDD, Item 3
Outcome: “On November 5, 2021, the parties entered into a Confidential Settlement Agreement and Release under which JJF, JJE and Jimmy John’s LLC agreed to pay plaintiff a one-time payment of $10,000”
CWL Investments, LLC, et al. v. Jimmy John’s Franchise, LLC & James North
judgment
Brought by a franchisee · filed 2017-06-20 · American Arbitration Association · AAA No. 01-17-0003-6022
“… (American Arbitration Association, filed June 20, 2017, AAA No. 01-17-0003-6022).”Page 24 of the 2025 FDD, Item 3
Outcome: “This resulted in an award to CWL of $3.5 million in compensatory damages. The parties separately stipulated to an award of attorneys’ fees and costs in the amounts of $1 million and $367,239, respectively. The case has now concluded.”
In Re: Jimmy John’s Overtime Litigation (Brunner v. Jimmy John’s, LLC, et al.; Watson v. Jimmy John’s, LLC, et al.; Whiton v. Jimmy John’s LLC, et al.)
settled
Brought by the franchisor · filed 2016 · United States District Court for the Northern District of Illinois, Eastern Division · 14-cv-5509, 15-cv-1681, and 15-cv-6010
“In Re: Jimmy John’s Overtime Litigation (United States District Court for the Northern District of Illinois, Eastern Division, Case Nos. 14-cv-5509, 15-cv-1681, and 15-cv-6010).”Page 23 of the 2025 FDD, Item 3
Outcome: “Under the terms of the Settlement, Defendants paid approximately $1,835,000 to resolve all remaining claims and the parties agreed to a mutual release and the dismissal of the lawsuit. On June 8, 2021, the Court granted final approval of the proposed settlement, and on June 15, 2021, the Court closed the matter.”
People of the State of Illinois v. Jimmy John’s Enterprises, LLC and Jimmy John’s Franchise, LLC
concluded
Government or regulatory action · filed 2016-06-08 · Circuit Court of Cook County, Chancery Division · 2016CH07746
“… (Circuit Court of Cook County, Chancery Division, Case No. 2016CH07746).”Page 23 of the 2025 FDD, Item 3
Outcome: “by agreement of the parties, the court entered a Final Order and Consent Decree under which JJF and JJE collectively agreed to pay the ILAG $100,000” (page 24)
Irwin v. Jimmy John’s Franchise, LLC, et al.
settled
filed 2015 · United States District Court for the Central District of Illinois, Urbana Division · 2:14-cv-02275-HAB
“… (United States District Court for the Central District of Illinois, Urbana Division, Case No. 2:14-cv-02275-HAB).”Page 22 of the 2025 FDD, Item 3
Outcome: “On December 6, 2016, the parties entered into a Settlement and Release Agreement, which provided that the plaintiff would receive a one-time payment of $125,000 in exchange for the plaintiff’s agreement to dismiss the amended complaint, with prejudice, against JJF and JJE, along with a full release of claims and covenant not to sue.” (page 23)
Starks v. Jimmy John’s LLC, Jimmy John’s Franchise, LLC, et al.
settled
filed 2013-02-14 · Superior Court of the State of California, County of Los Angeles · BC501113
“… (Superior Court of the State of California, County of Los Angeles, Case No. BC501113).”Page 22 of the 2025 FDD, Item 3
Outcome: “to make a minimum total donation of $100,000 to certain food banks, to pay the named plaintiff $5,000, and to pay $370,000 in attorneys’ fees. All of those payments have been made, and the case was dismissed on June 26, 2015.”

Parent, affiliates, master franchisor and subfranchisor

Pending (1)

Dominick Polizzi, et al. v. Jimmy John’s LLC
pending
Jimmy John’s, LLC ('JJ') · filed 2023-06-13 · United States District Court for the Central District of Illinois (removed from the Circuit Court of Champaign County, Illinois) · 2:23-cv-02168-CSB-EIL
“… (United States District Court for the Central District of Illinois, Case No. 2:23-cv-02168-CSB-EIL, filed June 13, 2023). Plaintiffs filed a putative class action in the Circuit Court of Champaign County, Illinois against Jimmy John’s, LLC (“JJ”) alleging violations of the Illinois Biometric Information Privacy Act.”Page 26 of the 2025 FDD, Item 3
Outcome: “JJ denies all liability in this matter and intends to defend itself vigorously.”

Concluded (3)

New York v. Dunkin’ Brands, Inc.
concluded
Government or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“… (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019).”Page 27 of the 2025 FDD, Item 3
Outcome: “On September 21, 2020, without admitting or denying the NYAG’s allegations, DBI and the NYAG entered into a consent agreement to resolve the State’s complaint. Under the consent order, DBI agreed to pay $650,000 in penalties and costs,”
The People of the State of California v. Arby’s Restaurant Group, Inc.
settled
Government or regulatory action · Arby’s Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“… (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019).”Page 26 of the 2025 FDD, Item 3
Outcome: “Under the settlement agreement, ARG paid no money but agreed (a) to remove the disputed provision from its franchise agreements (which it had already done);” (page 27)
The People of the State of California v. Dunkin’ Brands, Inc.
settled
Government or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“… (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.)”Page 27 of the 2025 FDD, Item 3
Outcome: “Under the terms of the settlement, DBI agreed not to enforce either version of the no-poaching provision or assist Dunkin’s franchisees in enforcing that provision.”

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

Multi-faceted litigation including joint-employer allegations poses wage/benefits liability exposure for franchisees

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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