FDD Items 3 & 4 · 2025 filing
Pet Evolution litigation history
What Pet Evolution 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
- 1
- 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
One active case: AGDG Investments LLC and Fufu & Tommy LLC v. Pet Evolution Franchising LLC, Peter Carlson, Fred Macciocchi, Rian Thiele (Superior Court of California, Orange County, Case No. 30-2024-01437355-CU-BC-CJC). Former franchisees allege misrepresentations in offer and sale of unit and regional development franchise regarding sales volume, earnings, required investments, and other aspects in violation of California Franchise Investment Law, common law fraud, breach of contract, and unfair competition. Defendants filed a Demurrer on May 13, 2025.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation alleging fraud, misrepresentation of sales/earnings, and violations of California Franchise Investment Law — indicates potential systemic disclosure failures
- Going Concern = False — potential financial instability at franchisor level raises questions about support, technology, and brand 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?