FDD Items 3 & 4 · 2023 filing

KickHouse litigation history

What KickHouse disclosed about lawsuits, arbitrations and bankruptcy in the 2023 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: 2023; Disclosures cover the prior ten years

Extracted from the 2023 Franchise Disclosure Document

Item 3: litigation

Four concluded regulatory/administrative actions: Virginia (SEC-2021-00035), Maryland (Case No. 2020-0118), Washington (Consent Order S-20-3022-21-CO01), and California — all related to affiliate KickHouse Fitness Licensing LLC offering licenses deemed to be franchises without proper registration. All resolved via consent orders; no ongoing litigation disclosed.

Item 3 (litigation) · 4 matters disclosed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Concluded (4)

In the Matter of State Corporation Commission v. KickHouse Fitness, LLC
settled
Government or regulatory action · KickHouse Fitness, LLC ('KickHouse') · filed 2022-01-06 · Virginia State Corporation Commission, Division of Securities and Retail Franchising · SEC-2021-00035
“… (³KickHouse´) ± On or about April 26, 2021, the Virginia Division of Securities and Retail Franchising (³Division´) submitted an inquiry to KickHouse seeking clarification and information as to KickHouse activities in Virginia.”Page 10 of the 2023 FDD, Item 3
Outcome: “A Settlement Order was entered on January 6, 2022, and the matter was then captioned as Case No. SEC-2021-00035 to identify the settlement.”
In the Matter of Determining Whether there has been a violation of the Franchise Investment Protection Act of Washington by KickHouse Fitness Licensing, LLC
concluded
Government or regulatory action · KickHouse Fitness Licensing, LLC · filed 2021-04-14 · Washington State Department of Financial Institutions, Securities Division · S-20-3022-21-CO01
“… Administrative hickeouse J OMOP caa ENMF”Page 10 of the 2023 FDD, Item 3
In the Matter of KickHouse Fitness Licensing LLC
concluded
Government or regulatory action · KickHouse Fitness Licensing LLC ('KickHouse Licensing') · filed 2021-01-05 · Securities Commissioner of Maryland (administrative proceeding) · 2020-0118
“… (³KickHouse Licensing´), Administrative Proceeding Before the Securities Commissioner of Maryland, Consent Order Dated January 5, 2021: Case No. 2020-0118.”Page 10 of the 2023 FDD, Item 3
In the Matter of The Commissioner of Financial Protection and Innovation v. KickHouse Fitness, LLC
concluded
Government or regulatory action · KickHouse Fitness, LLC and KickHouse Fitness Licensing LLC · California Department of Financial Protection and Innovation
“… The Commissioner of Financial Protection and Innovation (³Commissioner´) is responsible for administering and enforcing the California Franchise Investment Law (³CFIL´).”Page 11 of the 2023 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.

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?

Back to the KickHouse verdict Risk analysis on the brand page