FDD Items 3 & 4 · 2025 filing
MAACO litigation history
What MAACO 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
- 10
- Item 3, as counted in the filing
- Largest disclosed settlement
- $675K
- 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
Two franchisor-initiated actions against former franchisees (both concluded/settled). Three pending shareholder derivative/securities class actions against parent Driven Brands Holdings. Three concluded franchisee actions against franchisor/affiliates (including settlement for $5.5M to Maaco from franchisee, $100K paid by MAA to franchisees, $675K paid by MAA). One Canada affiliate action (settled CAN$500K). One Arby's affiliate state AG settlement.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigations including shareholder derivative and securities class actions create franchisor stability uncertainty
- Going concern status is FALSE but pending securities litigation suggests financial/operational stress at parent level
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?