FDD Items 3 & 4 · 2025 filing
Liftology litigation history
What Liftology 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- $300K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Next Day Access, LLC v. Gardner et al., No. 250907184 (Sept. 2, 2025): Competitor filed suit in Utah alleging misappropriation of trade secrets, civil theft and conversion, and tortious interference arising from a former NDA employee allegedly providing confidential information to Liftology. Plaintiffs seek compensatory damages, punitive damages, treble damages, attorneys' fees, and injunctive relief; minimum $300,000 in damages alleged against the former employee. Franchisor denies wrongdoing.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation alleging misappropriation of trade secrets and tortious interference suggests potential IP vulnerability and ethical concerns at leadership level
- Going concern status raises solvency questions about franchisor's ability to provide ongoing support, technology updates, and marketing
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?