FDD Items 3 & 4 · 2025 filing

Larks Entertainment litigation history

What Larks Entertainment 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: 9; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): Disclosed · an officer; Franchisor, parent, predecessor or officer

Filing year: 2025; Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

All 9 cases involve CEO Curt Skallerup personally or entities from his prior company Altitude Trampoline Parks / SR Franchising; cases include franchisee fraud claims, personal injury, lease guaranty disputes, and inter-party acquisition disputes; largest settlement $1,075,000 (Bump It Up). Several cases pending including Bedrock AAA arbitrations and state court action as of FDD date.

Item 3 (litigation) · 9 matters disclosed · 3 pending listed

Litigation cases

Officers and directors (individuals, not the company)

Pending (3)

Bedrock Property Solutions, LLC v. Altitude Franchising, LLC, SR Franchising, LLC, and ATP Franchising, LLC
pending
Brought by a franchisee · Curt Skallerup (CEO) - his former companies · filed 2024-01-03 · American Arbitration Association · 01-24-0000-0279
“… American Arbitration Association, Case No. 01-24-0000-0279, filed January 3, 2024.”Page 13 of the 2025 FDD, Item 3
SR Franchising, LLC, Jeffrey Alan Rutten and Curt Skallerup v. Bedrock Property Solutions, LLC
pending
Brought by the franchisor · Curt Skallerup (CEO) · filed 2024-03-11 · District Court, Tarrant County, Texas · 017-350989-24
“… District Court, Tarrant County, Texas, Case No. 017-350989-24, filed March 11, 2024.”Page 13 of the 2025 FDD, Item 3
Bedrock Property Solutions, LLC v. Curt Skallerup and Jeffrey Alan Rutten
pending
Brought by a franchisee · Curt Skallerup (CEO) · filed 2023-10-06 · American Arbitration Association · 01-23-0004-4093
“… American Arbitration Association, Case No. 01-23-0004-4093, filed October 6, 2023.”Page 13 of the 2025 FDD, Item 3

Concluded (6)

Bedrock Property Solutions, LLC v. SR Franchising, LLC, Altitude Franchising, LLC, Jeffrey Allen Rutten, and Curt Skallerup
dismissed
Brought by a franchisee · Curt Skallerup (CEO) · filed 2023-10-06 · United States District Court, Northern District of Texas · 4:23-cv-01026-O
“… United States District Court, Northern District of Texas, Case No. 4:23-cv-01026-O, filed October 6, 2023.”Page 13 of the 2025 FDD, Item 3
2434 South Interstate 35E Leasing, LLC and Milton 2434 South I-35, LLC v. Thomas Hjelm, Curtis Skallerup, Jeffrey Rutten, et al.
settled
Curtis Skallerup (CEO) · filed 2022-05-20 · District Court of Denton County, Texas · 22-4043-481
“2434 South Interstate 35E Leasing, LLC and Milton 2434 South I-35, LLC v. Thomas Hjelm, Curtis Skallerup, Jeffrey Rutten, SR Park Enterprises, LLC f/k/a Vertical Trampoline Park Enterprises, LLC, J&C IP, Inc., Lunacrossing, Ltd., and Triangle Property Management, Inc., District Court of Denton County, Texas, Cause No. 22-4043-481, filed May 20, 2022.”Page 17 of the 2025 FDD, Item 3
Outcome: “On March 26, 2025, Mr. Skallerup, Mr. Rutten, SR Park Enterprises, LLC and J&C IP, Inc. agreed to settle Plaintiffs’ claims in exchange for a mutual release of claims.”
ATP Holding Company, LLC (“ATPH”) v. Curtis Skallerup, Jeffrey A. Rutten, SR Franchising, LLC, et al.
settled
Curtis Skallerup (CEO) · filed 2020-05-11 · Superior Court, Delaware (and Court of Chancery countersuit No. 2020-0582) · N20C-05-098 MMJ CCLD
“ATP Holding Company, LLC (“ATPH”) v. Curtis Skallerup, Jeffrey A. Rutten, SR Franchising, LLC f/k/a Altitude Franchising, LLC, SR Management 2018, LLC f/k/a L&A Altitude Management LLC, Spike Apparel, LLC, SR Metal, LLC f/k/a ATP Metal, LLC, J&C IP, INC., SR”Page 15 of the 2025 FDD, Item 3
Outcome: “On December 4, 2021, the parties settled all claims and released all other claims against each other. The settlement required ATPH to pay Mr. Skallerup and Mr. Rutten each approximately $1,500,000 held in escrow and ATPH retained approximately $470,000, the total of which was the remaining balance of the purchase price under the APA.” (page 16)
William Pruitt v. Gastonia ATP, LLC d/b/a Altitude Trampoline Park, et al. and Curt Skallerup
settled
Brought by a third party · Curt Skallerup (CEO) · filed 2020-12-01 · Superior Court, Gaston County, North Carolina · 20-CVS-4241
“William Pruitt v. Gastonia ATP, LLC d/b/a Altitude Trampoline Park, ATP Alpha, LLC, Tim Kurtz, Altitude Franchising, LLC, ATP Franchising, LLC, SR Franchising, LLC, ATP Holding Company, LLC, ATP Investment Company, LLC, NRD Partners II, L.P., SR Management”Page 16 of the 2025 FDD, Item 3
Outcome: “In January 2024, the parties reached a global settlement in which SR Franchising and Curt Skallerup agreed to pay a total of $5,000.00, and plaintiff agreed to dismiss all claims with prejudice.” (page 17)
Bump It Up, LLC v. SR Park Enterprises, LLC, et al. and Curtis Skallerup
settled
Brought by a franchisee · Curtis Skallerup (CEO) · filed 2018-09-17 · District Court, Tarrant County, Texas · 067-302989-18
“Bump It Up, LLC v. SR Park Enterprises, LLC, f/k/a Vertical Trampoline Park Enterprises, LLC and d/b/a/ Altitude Trampoline Parks;”Page 14 of the 2025 FDD, Item 3
Outcome: “Defendants entered into a settlement agreement with BIU dated April 16, 2019, under which defendants were required to pay BIU a settlement amount of $1,075,000, and BIU executed an amendment to its license agreement which terminated and relinquished any right of first refusal it may have had, and which further limited the geographic scope of its protected territory.” (page 15)
Jim Kamp v. SR Park Enterprises, LLC, et al. and Curtis Skallerup
settled
Curtis Skallerup (CEO) · filed 2018-09-11 · District Court, Tarrant County, Texas · 017-302814- 18
“Jim Kamp v. SR Park Enterprises, LLC f/k/a Vertical Trampoline Park Enterprises, LLC and d/b/a Altitude Trampoline Parks;”Page 15 of the 2025 FDD, Item 3
Outcome: “Defendants entered into a settlement agreement with Kamp, which required the defendants to pay a settlement amount of $200,000 to Kamp, and Kamp executed an amendment to his license agreement which terminated and relinquished any right of first refusal he may have had, and under which Kamp would be entitled to certain assistance in finding a potential buyer to purchase his existing trampoline park.”

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.

Disclosed in the 2025 Franchise Disclosure Document

Item 4: bankruptcy

AJC ATP, LLC d/b/a Altitude Trampoline Park filed Chapter 11 bankruptcy March 16, 2021 (Case No. 21-12503-PDR, S.D. Fla.). Franchisor Larks LLC is not the debtor. CEO Curt Skallerup is a minority member, manager and creditor. Case dismissed April 23, 2021.

Disclosure signals that moved the score

How this shows up in the verdict

CEO has history of material litigation at previous franchise (Altitude Franchising) including pending arbitrations and fraudulent inducement allegations from former franchisees
Going concern status indicates financial instability at corporate level, creating risk of franchisor collapse and loss of support
CEO's litigation pattern suggests potential governance/ethics concerns that may carry forward to current franchise system

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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