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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 9
- Item 3, as counted in the filing
- Largest disclosed settlement
- $1.1M
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- 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.
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?