FDD Items 3 & 4 · 2022 filing
Network Lead Exchange litigation history
What Network Lead Exchange disclosed about lawsuits, arbitrations and bankruptcy in the 2022 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)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2022
- Disclosures cover the prior ten years
Extracted from the 2022 Franchise Disclosure Document
Item 3: litigation
Four disclosed actions, all relating to affiliates: (1) FTC v. Minuteman Press/Speedy Sign-A-Rama (1993/1998 injunction re Signarama); (2) Maryland consent order re Signarama (1996); (3) California DFPI consent order re TGG (2021); (4) California DFPI consent orders re TGG, GCZ, and UFG (2022 trade show). NLX itself has no pending, completed, or restrictive order litigation.
Item 3 (litigation) · 4 matters disclosed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Concluded (4)
Matter with no printed caption
concludedGovernment or regulatory action · Great Greek Franchising, LLC, Graze Craze Franchising, LLC and UFG Group, Inc. · filed 2022 · California Department of Financial Protection and Innovation (consent orders with TGG, GCZ and UFG)
“The following orders relates solely to TGG, GCZ and UFG: In February 2022, TGG, GCZ, and UFG entered into consent orders with the State of California, and its Department of Financial Protection and Innovation, as it relates to alleged violations which occurred at a trade show in California.”Page 17 of the 2022 FDD, Item 3
In the Matter of: The Commissioner of Financial Protection and Innovation v. Great Greek Franchising, LLC
settledGovernment or regulatory action · Great Greek Franchising, LLC (TGG) · filed 2021 · California Department of Financial Protection and Innovation
“The following order relates solely to TGG: TGG entered into a consent order with the Department of Financial Protection and Innovation of the State of California in July 2021.”Page 17 of the 2022 FDD, Item 3
Federal Trade Commission, Plaintiff v. Minuteman Press International, Inc., Speedy Sign-A-Rama, USA, Inc., Roy W. Titus and Jeffrey Haber, Defendants
concludedGovernment or regulatory action · Speedy Sign-A-Rama, USA, Inc. (Signarama) · filed 1993-06-04 · United States District Court, Eastern District of New York · CV 93-2496
“… (CV 93-2496) Filed on June 4, 1993, in the United States District Court, Eastern District of New York.”Page 16 of the 2022 FDD, Item 3
In the Matter of Speedy Sign-A-Rama, USA, Inc.
settledGovernment or regulatory action · Speedy Sign-A-Rama, USA, Inc. (Signarama) · Securities Commissioner of Maryland · S-95-112
“Signarama entered into a consent order with the Securities Commissioner of Maryland in January 1996. The matter is captioned In the Matter of Speedy Sign-A-Rama, USA, Inc. and is Case No. S-95-112.”Page 17 of the 2022 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.
Disclosed in the 2022 Franchise Disclosure Document
Item 4: bankruptcy
Sean Joseph Palmer, Regional Vice President, filed Chapter 7 bankruptcy on April 21, 2015 (Case No. 15-01601-TOM7, Northern District of Alabama). Discharge granted July 20, 2015.
Disclosure signals that moved the score
How this shows up in the verdict
- Parent company litigation across three affiliate brands (Signarama, Great Greek Franchising, Graze Craze) involving franchise registration and sales practice violations suggests systemic compliance 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?