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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Manhattan Pizza litigation history

What Manhattan Pizza 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
3
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
2025
Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

1) VA State Corporation Commission v. Manhattan Pizza Company LLC and Jack Azar (2014) re unregistered franchise sales - settled with $15,000 penalty; 2) Franchisor named as defendant in 2021 personal injury lawsuit (resolved without liability); 3) Franchisor filed suit against Maryland franchisee in 2023 for unpaid royalties - default judgment entered

Item 3 (litigation) · 3 matters disclosed

Litigation cases

The franchisor

Concluded (2)

  • Matter with no printed caption

    judgment

    Brought against a franchisee · filed 2023

    “In 2023 Franchisor filed a lawsuit against a Maryland franchisee and Kishan Bikki pertaining to a claim for unpaid royalty fees for one of its two franchises.”Page 8 of the 2025 FDD, Item 3
  • Matter with no printed caption

    concluded

    Brought by the franchisor · filed 2021

    “In 2021, Franchisor was named as a defendant in a personal injury lawsuit brough against one of its franchisees and its delivery driver.”Page 8 of the 2025 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

  • Commonwealth of Virginia ex rel. State Corporation Commission v. Manhattan Pizza Company, LLC, Tanaz, LLC d/b/a Luv’N’Berry, and Jack Azar

    settled

    Government or regulatory action · Manhattan Pizza Company, LLC (MPC, our parent), Tanaz, LLC (affiliate) and Jack Azar (our President) · filed 2014 · Virginia State Corporation Commission · SEC-2014-00018

    “… in the Virginia State Corporation Commission, Case No. SEC-2014-00018.”Page 8 of the 2025 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

  • Multiple litigation incidents (2014 unregistered franchise sales, 2021 personal injury, 2023 royalty default judgment) indicate compliance and relationship issues

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?