FDD Items 3 & 4 · 2026 filing
Kahala Coffee Traders litigation history
What Kahala Coffee Traders 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
- 18
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $75K
- 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
Multiple concluded cases involving affiliates including franchise disputes, trademark infringement, financial performance misrepresentation (Papa Murphy's), and state administrative actions. Three current lawsuits filed by Kahala Franchising against franchisees for breach of contract and trademark infringement.
Item 3 (litigation) · 18 matters disclosed
Litigation cases
The franchisor and its predecessor
Concluded (8)
KOHO, Inc. v. Kahala Franchising, L.L.C.
settledBrought by a franchisee · filed 2015 · Superior Court of the State of California for the County of Los Angeles · BC572565
“… Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc. (“Koho”) filed a Complaint against Kahala Franchising, L.L.C. (“Kahala”) alleging: (i) breach of contract; (ii) unjust enrichment; and (iii) declaratory relief.”Page 21 of the 2026 FDD, Item 3
Outcome: “On June 19, 2017, the parties entered into a settlement agreement whereby Kahala repurchased Koho’s Area Developer territory for the sum of $75,000 and forgave the remaining damages owed in the amount of $130,000.” (page 22)
Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee
settledBrought by a franchisee · The Extreme Pita Franchising USA, Inc. (predecessor in interest to affiliate MTY Franchising USA, Inc.), EP Development, Inc. and Feisal Ramjee · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7
“… Superior Court of the State of Washington for King County; Case No. 15-2-15120-7.”Page 21 of the 2026 FDD, Item 3
Outcome: “The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016.”
State of Maryland Determination
concludedGovernment or regulatory action · Triune, LLC (predecessor of BF Acquisition Holdings, L.L.C.) · filed 2012 · State of Maryland (Consent Order with the Office of the Attorney General of Maryland) · Case Number 2012-0073
“Concluded State Administrative Actions, Arbitration, and Litigation Involving BF Acquisition Holdings, L.L.C. and/or its predecessors State of Maryland Determination; Case Number 2012-0073.”Page 27 of the 2026 FDD, Item 3
Outcome: “Without admitting or denying the allegations, in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the future; (ii) pay the Office of the Attorney General the sum of $50,000 as a civil penalty;” (page 28)
State of Virginia Determination
settledGovernment or regulatory action · Triune, LLC (predecessor of BF Acquisition Holdings, L.L.C.) · filed 2012 · Division of Securities and Retail Franchising of the State Corporation Commission (Virginia) · Case Number SEC-2012-00027
“… Case Number SEC-2012-00027. In February 2012, the Division of Securities and Retail Franchising of the State Corporation Commission (the "Commission") alleged that during 2009 Triune, LLC (“Triune”): (i) offered or sold franchises in Virginia in 2009 that were not registered under the Virginia Retail Franchising Act”Page 28 of the 2026 FDD, Item 3
Outcome: “Without admitting or denying the allegations, on November 26, 2012, Triune voluntarily entered into a Settlement Order with the Commission and agreed: (i) to not violate the Virginia Act in the future; (ii) to pay Virginia the sum of $25,000 as a penalty and the sum of $5,000 to defray the Commission’s costs of investigation;”
New York Department of Law claim against Blimpie Associates, Ltd. and Joseph Dornbush (no case caption printed)
concludedGovernment or regulatory action · Blimpie Associates, Ltd. and Joseph Dornbush (formerly the President of Blimpie) · filed 1992 · New York Department of Law
“In May 1992, Blimpie Associates, Ltd. (“Blimpie”) and Joseph Dornbush (formerly the President of Blimpie) (collectively “Respondents”) responded to a claim by the New York Department of Law that it had sold franchises during a period of time when Blimpie’s prospectus had not been updated by amendment.”Page 26 of the 2026 FDD, Item 3
Outcome: “Without the admission of any wrongdoing, Respondents consented to the entry of an order in which Respondents agreed: (i) to entry of a judgment enjoining them from further violations of the New York Franchise Sales Act; and (ii) to pay the sum of $18,000 to the State of New York as an additional allowance.”
In the Matter of Maui Wowi Franchising, Inc.
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (predecessor in interest to Kahala Franchising, L.L.C.) · Securities Commissioner of Maryland · Case No. 2005-0651
“On November 11, 2005, Maui Wowi Franchising, Inc., the predecessor franchisor of the Maui Wowi brand (“MWF”), entered into a Consent Order with the Securities Commissioner of Maryland (“Commissioner”) resulting from MWF inadvertently entering into four franchise agreements with Maryland residents after its registration in Maryland expired on June 9, 2004”Page 27 of the 2026 FDD, Item 3
Outcome: “At this time, MWF is in full compliance with the Consent Order.”
In the Matter of Maui Wowi Franchising, Inc. (No. Case No. 2007-0194)
concludedGovernment or regulatory action · Maui Wowi Franchising, Inc. (MWF) · Securities Commissioner of Maryland · Case No. 2007-0194
“On September 12, 2007, “MWF” entered into a Consent Order with the Maryland Commissioner resulting from MWF inadvertently entering into two franchise agreements with two Maryland residents (“Second Maryland Franchisees”) without delivering to them the appropriate Offering Circular.”Page 27 of the 2026 FDD, Item 3
Outcome: “to reimburse the Maryland Attorney General for its investigation and resolution costs in the total amount of $2,500.”
In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog
concludedGovernment or regulatory action · SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc. (predecessor of affiliate SFF, L.L.C.) · Securities Commissioner of Maryland (Administrative Proceeding) · Case No. 2012-0055
“… Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2012-0055.”Page 26 of the 2026 FDD, Item 3
Outcome: “On August 29, 2012, the Commissioner and SFE agreed to enter into a consent order whereby SFE, without admitting or denying any violations of the law, agreed to: (i) immediately and permanently cease from the offer and sale of franchises in violation of the Maryland Franchise Law;”
Status not stated in the filing (3)
Kahala Franchising, L.L.C. v. Byron Washington and Bram Berg
Brought against a franchisee · United States District Court for the Southern District of New York · 1:25-cv-06392
“… United States District Court for the Southern District of New York; Case No.: 1:25-cv-06392.”Page 29 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter
Brought against a franchisee · United States District Court in and for the Eastern District of Washington · 2:25-cv-00426
“Suit for Breach of Contract Kahala Franchising, L.L.C. v. Golden Enterprises, Inc.; DBH Associates, LP, Deseret Sales, Inc., Randy Herzog, Laurie Herzog, Amy Wilson, Rob Wilson, Clare Hunter, Deobrah Hunter; United States District Court in and for the Eastern District of Washington; Case No.: 2:25-cv-00426.”Page 28 of the 2026 FDD, Item 3
Kahala Franchising, L.L.C. v. Mid Valley Foods, Inc., Candyce Dilbeck, Steve Hopkins, Gegory M. Hopkins
Brought against a franchisee · United States District Court in and for the District of Arizona · 2:25-cv-04166-KML
“… United States District Court in and for the District of Arizona; Case No.: 2:25-cv-04166-KML.”Page 28 of the 2026 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (3)
Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, LLC
settledBrought by a franchisee · Wetzel’s Pretzels, L.L.C. · filed 2019 · American Arbitration Association (Los Angeles, California) · AAA Case No. 01-19-0002-9326
“On or about September 11, 2019, Pretzelsdallas1, Inc., (“Claimant/Counter Respondent”) a franchisee, filed a demand for arbitration against Wetzel’s Pretzels, L.L.C. (“Respondent/Counter Claimant”) with the American Arbitration Association in which it alleged claims for (i) recission and restitution for intentional misrepresentation, (ii)”Page 24 of the 2026 FDD, Item 3
Outcome: “On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid Claimant/Counter Respondent the sum of $125,000. The matter was subsequently dismissed with prejudice.”
Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc.
settledBrought by a franchisee · Famous Dave’s of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549
“… American Arbitration Association, Minneapolis, Minnesota, Case No. 01 16 0000 8549.”Page 22 of the 2026 FDD, Item 3
Outcome: “On July 20, 2016, the arbitrators ruled in partial favor of the pre-hearing motion filed by Famous Dave’s by dismissing Claimants’ MFA claims against Famous Dave’s. Upon the dismissal of the MFA claims, Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement”
DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, et al. v. Papa Murphy’s International LLC, et al.; consolidated with Mitch and Kristen Brink, Brink Holdings Inc., et al. v. Papa Murphy’s International LLC, et al.
settledBrought by a franchisee · Papa Murphy’s International LLC, with Papa Murphy’s Company Stores, Inc., PMI Holdings Inc., Papa Murphy’s Intermediate Inc., Papa Murphy’s Holdings, Inc., Lee Equity Partners LLC and named board memb · filed 2014 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated); 14-2-01743-3
“DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud's Pizza, Robert J. Dickerson Trust UA, Rob Dickerson, 4LM Enterprises, Inc., Jana and Randell Liles, Ben and Kim Mayfield, SEAMS Holdings LLC, Scott and Erica Shelby, Robert Hoersting, PM Savannah LLC,”Page 24 of the 2026 FDD, Item 3
Outcome: “Each of the plaintiff groups entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was dismissed in June 2020.” (page 25)
Officers and directors (individuals, not the company)
Concluded (1)
In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al.)
settledW. Craig Barber (Chief Executive Officer) and Robert Langford (Chief Concept Officer - Family Restaurant Division) · filed 2017-12-01 · United States Bankruptcy Court for the District of Delaware · Case No. 15-12406 (KG)
“On December 1, 2017, the Chapter 7 trustee in the Restaurants Acquisition I, LLC (“RAI”) bankruptcy proceeding filed suit in the United States Bankruptcy Court against our Chief Executive Officer W. Craig Barber, our Chief Concept Officer – Family Restaurant Division Robert Langford and companies owned jointly by them alleging avoidance, fraudulent transfer,”Page 24 of the 2026 FDD, Item 3
Outcome: “On March 6, 2019, Barber and Langford each settled with the Chapter 7 trustee by each agreeing to pay to the trustee and estate separate payments totaling $150,000 each over a three-year period.”
This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.
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
- Extensive litigation history across multiple brands under same parent company, including registration violations and breach of contract cases in multiple states
- Parent company litigation involving predecessor brands (SweetFrog, Famous Dave's, Wetzel's, Papa Murphy's) indicates systemic compliance and operational issues
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?