FDD Items 3 & 4 · 2025 filing
New York Fries litigation history
What New York Fries 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
- 6
- 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
Six pending matters disclosed: (1) K & B Atlantic Inc. v. Recipe Unlimited Corporation (Newfoundland, 2019) — former Milestones franchisee seeking ~CAD $4.9M; (2) N.A.M. 9 Hospitality Inc. v. Recipe Unlimited Corporation (Ontario, 2021) — former Fionn MacCool's franchisee seeking CAD $4M; (3) 2589352 Ontario Inc. v. Recipe Unlimited Corporation (Ontario, 2021) — former Kelseys franchisee seeking CAD $2.7M; (4) First of Five Inc. v. JSM Corporation and Recipe Unlimited Corporation (Ontario, 2017/2023) — Harvey's franchisee HVAC/lease dispute seeking CAD $24,706; (5) 9264-0101 Quebec Inc. v. Recipe Unlimited Corporation (Quebec, 2019) — Harvey's franchisee seeking ~CAD $150,000; (6) 2642681 Ontario Inc. v. Recipe Unlimited Corporation (ADRIC arbitration, 2023) — former NYF India master licensee, amounts unspecified. All cases involve Parent, not the US franchisor.
Item 3 (litigation) · 6 matters disclosed · 6 pending listed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Pending (6)
2642681 Ontario Inc. v. Recipe Unlimited Corporation
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2023-09-15 · Alternative Dispute Resolution Institute of Canada (originally ICC) · DCA 24-106
“… Alternative Dispute Resolution Institute of Canada File No. DCA 24-106.”Page 15 of the 2025 FDD, Item 3
2589352 Ontario Inc. v. Recipe Unlimited Corporation
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2021-09-10 · Ontario Superior Court of Justice · CV- 21-00668506-0000
“… (Ontario Superior Court of Justice, Case. No. CV- 21-00668506-0000).”Page 14 of the 2025 FDD, Item 3
N.A.M. 9 Hospitality Inc., N.A.M. 9 Holdings & Management Inc. and Nitin Mendiratta v. Recipe Unlimited Corporation, Dean Campbell, Luis Rego and Grant Cobb.
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2021-04-20 · Ontario Superior Court of Justice · CV-20-00001451-0000
“N.A.M. 9 Hospitality Inc., N.A.M. 9 Holdings & Management Inc. and Nitin Mendiratta v. Recipe Unlimited Corporation, Dean Campbell, Luis Rego and Grant Cobb.”Page 14 of the 2025 FDD, Item 3
9264-0101 Quebec Inc., Hugo Tremblay, Charles Tremblay v. Recipe Unlimited Corporation
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2019-11-29 · Quebec Superior Court · 500-17-110564-195
“… Quebec Superior Court, Claim No. 500-17-110564-195.”Page 15 of the 2025 FDD, Item 3
K & B Atlantic Inc., 66902 Newfoundland & Labrador Inc., 68225 Newfoundland & Labrador Inc. Myra King, Ronald Joseph Burke, Marsha Gail Burke v. Recipe Unlimited Corporation/Societe De Recettes Illimitees and Kevin King and 55732 Newfoundland and Labrador Inc.
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2019-03-19 · Supreme Court of Newfoundland and Labrador, General Division · 2019 01G 2136
“… (Supreme Court of Newfoundland and Labrador, General Division, Case.”Page 14 of the 2025 FDD, Item 3
First of Five Inc. v. JSM Corporation (Ontario) and Recipe Unlimited Corporation
pendingBrought by a franchisee · Recipe Unlimited Corporation (Parent) · filed 2017 · Ontario Superior Court of Justice, Small Claims Court; Ontario Superior Court of Justice; Divisional Court of Ontario · SC1700000112000
“… (Ontario Superior Court of Justice, Small Claims Court, Claim No. SC1700000112000.”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
- Parent company litigation in multiple countries (Canada, India) indicates franchise model may be fundamentally flawed or misrepresented
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?