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FDD Items 3 & 4 · 2022 filing

Premier Martial Arts litigation history

What Premier Martial Arts 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
3
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
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

Three litigation matters disclosed: (1) California Commissioner consent order against PMAI for unregistered franchise sales and omissions in registration applications, resulting in $10,000 penalty and ongoing disclosure requirements; (2) UATP v. LOFA in Texas District Court (pending) involving breach of contract, tortious interference, fraud claims seeking $6.5M+ damages, with counterclaims by LOFA for conversion, breach of contract, and business interference; (3) Four franchisees (three current, one former) v. UATP and principals in New Jersey Superior Court alleging fraudulent inducement, unauthorized financial performance representations, breach of franchise agreements, and violations of multiple state consumer/franchise protection acts.

Item 3 (litigation) · 3 matters disclosed · 2 pending listed

Litigation cases

The franchisor

Concluded (1)

  • The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International and/or Premier Martial Arts

    concluded

    Government or regulatory action · filed 2021-11-18 · California Commissioner of Financial Protection and Innovation

    “The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International and/or Premier Martial Arts.”Page 13 of the 2022 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (2)

  • Adventure Park Hamilton LLC, Adventure Quest, Inc., Adventure Park Manchester LLC, and TBSM Adventure Corporation vs. UATP Management LLC, Michael O. Browning, Jr., Alix Wren, and James Crowley

    pending

    Brought by a franchisee · UATP Management LLC (our affiliate) and its officers · filed 2020-10-22 · District Court of Tarrant County, Texas (originally Superior Court of New Jersey, Bergen County) · 017-325200-21; BER-L-006331-20

    “… District Court of Tarrant County, Texas Case No. 017-325200-21.”Page 14 of the 2022 FDD, Item 3
  • UATP Management, LLC v. Leap of Faith Adventures, LLC

    pending

    Brought by the franchisor · UATP Management, LLC (our affiliate) · filed 2018-07-09 · District Court of Tarrant County, Texas · 017-300796-18

    “… District Court of Tarrant County, Texas Case No. 017-300796-18. On July 9, 2018, UATP filed this lawsuit (“Petition”) against the defendant Leap of Faith Adventures, LLC (“LOFA”), that, at the time of filing, was a distributor and installer of attractions used in Urban Air Adventure Parks.”Page 14 of the 2022 FDD, Item 3

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

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?