FDD Items 3 & 4 · 2024 filing

Lindora litigation history

What Lindora disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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: 2024; Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

4 cases disclosed: (1) Dance Fitness Michigan LLC et al. v. AKT Franchise LLC et al. (franchise disclosure/fraud claims by former AKT franchisees, CA Superior Court, filed Aug 30, 2023); (2) Enlightened Armadillo Inc. et al. v. Yoga Six Franchise LLC et al. (similar franchise disclosure/covenant claims, CA Superior Court, filed Nov 22, 2023); (3) City of Taylor General Employees Retirement System v. Xponential Fitness Inc. et al. (securities class action, CD Cal, filed Feb 9, 2024); (4) Gideon Akande v. Anthony Geisler et al. (derivative action re XFI, CD Cal, filed Mar 10, 2024). All involve affiliates/parent; franchisor Lindora Franchise LLC is named in context of affiliates.

Item 3 (litigation) · 4 matters disclosed · 4 pending listed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Pending (4)

City of Taylor General Employees Retirement System v. Xponential Fitness, Inc., Anthony Geisler, and John Meloun
pending
Brought by a third party · Xponential Fitness, Inc. (XFI, controls our parent Xponential) · filed 2024-02-09 · United States District Court for the Central District of California, Southern Division · 8:24-cv-00285
“… filed February 9, 2024, United States District Court for the Central District of California, Southern Division, Case No. 8:24-cv-00285 (the “Taylor General Lawsuit”).”Page 15 of the 2024 FDD, Item 3
Gideon Akande v. Anthony Geisler, John Meloun, Jair Clarke, Mark Grabowski, Chelsea A. Grayson, Brenda Morris, and Xponential Fitness, Inc.
pending
Brought by a third party · Xponential Fitness, Inc. (XFI) and its officers and directors · filed 2024-03-10 · United States District Court for the Central District of California, Western Division · 2:24-cv-01928
“… filed March 10, 2024, United States District Court for the Central District of California, Western Division, Case No. 2:24-cv-01928.”Page 15 of the 2024 FDD, Item 3
Dance Fitness Michigan LLC, et al. v. AKT Franchise, LLC, et al.
pending
Brought by a franchisee · AKT Franchise, LLC and AKT SPV (affiliates), with Xponential Fitness, LLC (our parent) and XFI · filed 2023-08-30 · Superior Court of the State of California, County of Orange · 30-2023-01345433-CU-AT-CXC
“… filed August 30, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023-01345433-CU-AT-CXC (the “AKT Lawsuit”).”Page 14 of the 2024 FDD, Item 3
Enlightened Armadillo, Inc., et al. v. Yoga Six Franchise, LLC, et al.
pending
Brought by a franchisee · Yoga Six entities (affiliates), with Xponential Fitness, LLC (our parent) and XFI · filed 2023-11-22 · Superior Court of the State of California, County of Orange · 30-2023-01367265-CU-AT-CXC
“… filed November 22, 2023, Superior Court of the State of California, County of Orange, Case No. 30-2023-01367265-CU-AT-CXC.”Page 14 of the 2024 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.

Disclosure signals that moved the score

How this shows up in the verdict

Litigation pattern across affiliate brands (AKT, Yoga Six) involving pre-sale disclosure violations suggests systemic compliance issues within XFI portfolio
Securities litigation against parent company officers raises questions about financial reporting accuracy and executive accountability

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?

Back to the Lindora verdict Risk analysis on the brand page Franchisee contacts for due-diligence calls