FDD Items 3 & 4 · 2025 filing
Perkins Restaurant and Bakery litigation history
What Perkins Restaurant and Bakery 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
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- $26K
- As stated in Item 3
- 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
4 predecessor (PMC) employment/PAGA cases; Norwalt (wrongful termination + PAGA, settled $26K), Ramirez (PAGA wage deductions, settled $7K), Nourani (PAGA off-clock/overtime, no resolution), Cupp (class/PAGA rest breaks, individual arbitration, no resolution). All relate to predecessor franchisor Perkins & Marie Callender's LLC.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Predecessor PMC (Perkins & Marie Callender's LLC) filed Chapter 11 August 2019 (Case No. 19-11743, D. Del.). Also non-affiliate TOMS King LLC Chapter 11 filed January 2023 (Case No. 23-50001), cases closed May/July 2023 — disclosed because current Brand President Matt Carpenter was CEO of TOMS King during bankruptcy.
Disclosure signals that moved the score
How this shows up in the verdict
- Material employment litigation against predecessor franchisor (PMC) involving wage/hour violations and PAGA claims signals potential operational/compliance risks
- Successor franchisor liability exposure unclear given litigation tied to predecessor operations
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?