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FranchiseVerdict

FDD Items 3 & 4 · 2022 filing

Poké Bar Dice & Mix litigation history

What Poké Bar Dice & Mix disclosed about lawsuits, arbitrations and bankruptcy in the 2022 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
2022
Disclosures cover the prior ten years

Extracted from the 2022 Franchise Disclosure Document

Item 3: litigation

Fusion Capital 1, LLC and Fusion Capital 2, LLC versus JB Brothers, Inc., Jason Park, Jeong Hi Ju, Yoon Ho Ju; USDC District of Maryland (1:19-cv-02947); former franchisee alleging violations of Virginia and Maryland franchise registration laws and common law fraud. Defendants' Motion to Dismiss granted April 13, 2020; case closed.

Disclosure signals that moved the score

How this shows up in the verdict

  • Recent litigation by former franchisee alleging registration law violations and fraud (though dismissed) raises compliance and trust concerns
  • Going concern status indicates potential franchisor financial instability, raising questions about support and system 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?