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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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.
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?