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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 6
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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.
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?