FDD Items 3 & 4 · 2023 filing
medspa810 litigation history
What medspa810 disclosed about lawsuits, arbitrations and bankruptcy in the 2023 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
- 2
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $275K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2023
- Disclosures cover the prior ten years
Extracted from the 2023 Franchise Disclosure Document
Item 3: litigation
Two concluded predecessor litigation cases: (1) Henry & Malone v. Dunatov et al. (2014) - fraud allegations re regional developer agreement, settled for $275,000; (2) Angela Henry et al. v. SPA 810 (2017) - fraud/breach of contract re settlement payment failure, default judgment of $450,000 plus $12,500 attorney fees. All claims satisfied through SPA 810 bankruptcy reorganization.
Item 3 (litigation) · 2 matters disclosed
Litigation cases
The franchisor and its predecessor
Concluded (2)
Angela Henry et al. v. SPA 810, L.L.C. et al.
judgmentSPA 810, L.L.C. · filed 2017-02-17 · United States District Court for the Southern District of Texas, Houston Division · 4:17-cv-00517
“… Case No. 4:17-cv-00517 (filed February 17, 2017) On February 17, 2017, Plaintiffs filed another suit against SPA 810, L.L.C., John Dunatov, Timothy Reilly, and Kanna Reilly for fraud, breach of contract and”Page 13 of the 2023 FDD, Item 3
Henry & Malone v. John Dunatov, Timothy Reilly and Kanna Reilly
settledSPA 810, L.L.C. (and its principals) · filed 2014-06-30 · District Court of Harris County, Texas · 15-2115
“… Case No. 15-2115 (filed June 30, 2014) On or about June 30, 2014, Angela Henry and Jerome Malone filed a Petition in the District Court of Harris County, Texas, Case alleging fraud against John”Page 13 of the 2023 FDD, Item 3
Outcome: “At a court ordered mediation, the parties settled the lawsuit whereby SPA 810, L.L.C. and John Dunatov agreed to pay the Plaintiffs $275,000 over time according to the terms of a promissory note.”
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.
Disclosed in the 2023 Franchise Disclosure Document
Item 4: bankruptcy
Predecessor SPA 810, L.L.C. filed Chapter 11 in USBC District of Arizona (Case No. 2:18-bk-06718-DPC) on June 11, 2018; plan confirmed January 24, 2019. Also: Collision on Wheels International LLC (CEO Greg Longe) filed Chapter 7 in USBC Eastern District of Michigan on July 20, 2010, terminated December 10, 2014.
Disclosure signals that moved the score
How this shows up in the verdict
- Material litigation history: Two fraud/breach cases totaling $725,000 in settlements/judgments against predecessor entity and principals raises governance and integrity concerns
- Non-transparent rebranding: Transition from SPA 810 to medspa810 may obscure negative history; litigation involved 'predecessor' entity but same principals/operations
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?