FDD Items 3 & 4 · 2025 filing
Motto Mortgage litigation history
What Motto Mortgage 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
- 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Franchisor initiated 4 lawsuits against franchisees in fiscal year 2024: (1) breach of franchise and prior settlement agreement including confidentiality/non-disparagement; (2)-(4) suits to collect royalty payments. No actions brought against the franchisor.
Item 3 (litigation) · 4 matters disclosed · 4 pending listed
Litigation cases
The franchisor
Pending (4)
Motto Franchising, LLC v. Brooke Marin and Marin AB Holdings, LLC
pendingBrought against a franchisee · filed 2024-07-29 · U.S. District Court, District of Colorado · 24-CV-02083
“… Case No. 24-CV-02083, pending in the United States District Court, District of Colorado, filed July 29, 2024.”Page 15 of the 2025 FDD, Item 3
Motto Franchising, LLC v. Free Lunch LLC, Andrew Chock, and Simon Overmiller
pendingBrought against a franchisee · filed 2024-09-06 · Court of Common Pleas, York County, Pennsylvania (printed as 'Supreme Court of Pennsylvania, Court of Common Pleas, York County') · 2024-SU- 002620
“… Case No.: 2024-SU- 002620, pending in the Supreme Court of Pennsylvania, Court of Common Pleas, York County, filed September 6, 2024.”Page 15 of the 2025 FDD, Item 3
Motto Franchising, LLC v. Michael Guimares, Jr.
pendingBrought against a franchisee · filed 2024-07-03 · Trial Court of Massachusetts, Plymouth County Superior Court · 2483-CV-00516
“… Case No.: 2483-CV-00516, pending in the Trial Court of Massachusetts, Plymouth County Superior Court, filed July 3, 2024.”Page 15 of the 2025 FDD, Item 3
Motto Franchising, LLC v. Patrick Winsey, Jemila Winsey, and Steven Griffin
pendingBrought against a franchisee · filed 2024-03-06 · District Court, County of Denver, Colorado · 2024-CV- 030723
“… Case No.: 2024-CV- 030723, pending in the District Court, County of Denver, filed March 6, 2024; default judgement entered October 9, 2024.”Page 15 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
- Four active lawsuits in 2024 including royalty collection defaults, suggesting franchisee cash flow problems and franchisor-franchisee conflict
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?