FDD Items 3 & 4 · 2026 filing
Orangetheory Fitness litigation history
What Orangetheory Fitness disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $34K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
1) Rpash Inc./Regelean v. UFG (AAA 2016) - franchise territory misrepresentation claim; settled with $34,200 payment and transfer fee waiver. 2) Illinois v. The Bar Method Franchising Inc. (2009) - franchise registration violation; consent decree with $5,000 penalty. 3) NY AG v. The Bar Method Inc./Carl Diehl (Assurance No. 08-108) - franchise registration violation; AOD with $2,500 payment.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Thomas Leverton (CEO of parent companies) was CEO of CEC Entertainment, Inc. from July 2014 to February 2020. Approximately 4 months after he left, CEC Entertainment filed Chapter 11 bankruptcy (Case No. 20-33163, June 24, 2020). Plan confirmed December 15, 2020; discharge December 30, 2020.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple litigation actions including settled arbitration for demographic misrepresentation, permanent Illinois injunction for FDD violations, and NY Assurance of Discontinuance for unregistered sales — suggests compliance and disclosure issues
- Going Concern status raises questions about franchisor's financial stability and long-term viability
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?