FDD Items 3 & 4 · 2025 filing
Mr. Charlie’s Told Me So litigation history
What Mr. Charlie’s Told Me So 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Tustin Legacy, LLC v. Aaron Haxton, Taylor Mckinnon & Mr. Charlie Told Me So LLC (Cal. Super. Ct., Case No. 248MCV00901). Filed Feb 27, 2024. Corporate dispute re: alleged 25% ownership interest in affiliate MCTMS; compensatory damages sought of at least $1,200,000. Defendants filed cross-complaint. Case pending.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Amanda Marie Mckinnon and Antonio David Mckinnon filed Chapter 7 (Case No. 2:19-bk-13970-BB, Bankr. C.D. Cal.) on April 8, 2019; discharged July 24, 2019. Taylor Mckinnon (Co-Founder and Chief Marketing Officer) joined as Joint Debtor after spouse's medical issue. No other bankruptcy disclosed.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation involving ownership disputes and alleged fund diversion raises governance and financial integrity concerns
- Going Concern status is FALSE — indicates financial distress or sustainability questions at corporate 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?