FDD Items 3 & 4 · 2026 filing
Kiddie Academy litigation history
What Kiddie Academy 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
- 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
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Kiddie Academy has been party to franchise-relationship disputes: uncured defaults/relocation dispute (Radoste, settled 2017); trademark/copyright infringement after termination (Sumanth/Wonder World Learning, settled 2021); post-termination trademark dispute (Sierra Learning Academy, settled 2019, franchisee allowed transfer + partial refund); pending 2024 suit against former franchisee (Paradise Organization Corp.) for copyright infringement, breach of contract/guaranty, and trade secrets violations after removal of marks post-termination.
Item 3 (litigation) · 4 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Kiddie Academy Domestic Franchising, LLC v. Paradise Organization Corp., Sonu Chadha and Deepak Chadha
pendingBrought against a franchisee · filed 2024-04-23 · U.S. District Court for the Eastern District of New York · 2:24-cv-02864-JRB-JMW
“… (U.S. District Court for the Eastern District of New York, Case #2:24-cv-02864- JRB-JMW) On April 23, 2024, the Franchisor filed a complaint against the”Page 17 of the 2026 FDD, Item 3
Concluded (3)
Sierra Learning Academy, Inc. v. Kiddie Academy Domestic Franchising, LLC
settledBrought by a franchisee · filed 2018-11-16 · District Court for San Bernardino County, California · 3 CIVDS 1830239
“… District Court for San Bernardino County, California, Civil Action 3 CIVDS 1830239.”Page 17 of the 2026 FDD, Item 3
Kiddie Academy Domestic Franchising, LLC v. Supriya Sumanth, Sumanth Nandagopol, and Wonder World Learning, LLC
settledBrought against a franchisee · filed 2017-11-16 · U.S. District Court for the District of Maryland · 1:17-cv-03420-MJG
“… U.S. District Court for the Northern District of Maryland, Case #1:17-cv-03420-MJG.”Page 16 of the 2026 FDD, Item 3
Outcome: “The action was subsequently settled pursuant to an agreement executed on or about May 28, 2021, pursuant to which neither party admitted fault or paid any damages.”
Kiddie Academy Domestic Franchising, LLC v. Radoste, LLC (AAA); Radoste, LLC v. Kiddie Academy Domestic Franchising, LLC
settledBrought against a franchisee · filed 2016-07-06 · American Arbitration Association; Superior Court of New Jersey, Monmouth County · AAA 01-16-0002-7226; L-000089
“Kiddie Academy Domestic Franchising, LLC v. Radoste, LLC, American Arbitration Association, AAA Case # 01-16-0002-7226. This action was filed on July 6, 2016.”Page 16 of the 2026 FDD, Item 3
Outcome: “The matter was settled pursuant to an agreement executed on or about February 22, 2017. Franchisor admitted no fault or other wrongdoing.”
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?