FDD Items 3 & 4 · 2025 filing
JPAR - Real Estate litigation history
What JPAR - Real Estate 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
- 4
- 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Indiana admin order for franchise sale after registration expired ($1,500 penalty). Three affiliate antitrust cases (JPPRES as co-defendant with Texas Association of Realtors and others re: commission rules). Settlement executed pending final court approval.
Item 3 (litigation) · 4 matters disclosed · 3 pending listed
Litigation cases
The franchisor
Concluded (1)
In the Matter of: JPAR Franchising, LLC
concludedGovernment or regulatory action · filed 2021-08-30 · The Office of the Indiana Secretary of State, Securities Division · 21-0013 CA
“Administrative Order In the Matter of: JPAR Franchising, LLC. The Office of the Indiana Secretary of State, Securities Division, Filed August 30, 2021 (Cause No. 21-0013 CA).”Page 11 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Pending (3)
Jeremy Keel, et al. v. House of Seven Gables Real Estate, Inc. et al
pendingBrought by a third party · JP Piccinini Real Estate Services, LLC (our affiliate) · filed 2025-01-27 · U.S District Court, Western District of Missouri, Western Division · 4:25-cv-00055-FJG
“… (Case No. 4:25-cv-00055-FJG, January 27, 2025, U.S District Court, Western District of Missouri, Western Division).”Page 12 of the 2025 FDD, Item 3
Outcome: “a settlement agreement has been executed that would resolve and dismiss all three cases above; however, the judge must still make a final ruling to approve of the settlement terms as part of the standard legal process and there is still opt-out and objection opportunity for class plaintiffs.”
Julie Martin, et al. v. Texas Association of Realtors, Inc. et al
pendingBrought by a third party · JP Piccinini Real Estate Services, LLC (our affiliate) · filed 2023-12-14 · U.S. District Court, Eastern District of Texas, Sherman Division · 4:423-cv-01104
“… (Case No. 4:423-cv-01104, December 14, 2023, U.S. District Court, Eastern District of Texas, Sherman Division).”Page 11 of the 2025 FDD, Item 3
QJ Team, LLC, et al. v. Texas Association of Realtors, Inc. et al
pendingBrought by a third party · JP Piccinini Real Estate Services, LLC (our affiliate) · filed 2023-11-13 · U.S. District Court, Eastern District of Texas, Sherman Division · 4:2023cv01013
“… (Case No. 4:2023cv01013, November 13, 2023, U.S. District Court, Eastern District of Texas, Sherman Division).”Page 12 of the 2025 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
- Three active class-action antitrust lawsuits against affiliate regarding commission practices create legal and reputational risk
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?