FDD Items 3 & 4 · 2025 filing
Prime Car Wash litigation history
What Prime Car Wash 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
Item 3 · 1 matter disclosed · 1 pending listed
Litigation cases
Officers and directors (individuals, not the company)
Pending (1)
Perry Properties, LLC, et al. v. Robert Hatfield and Chris Galloway
pendingThird-party plaintiff · Robert Hatfield (our CEO) and Chris Galloway (our former CFO) · filed 2025-05-15 · Indiana Commercial Court, Marion County · No. 49D01-2505-PL-023132
“Perry Properties, LLC, et al. v. Robert Hatfield and Chris Galloway, Indiana Commercial Court, Marion County, No. 49D01-2505-PL-023132. On May 15, 2025, the Plaintiffs, which are minority investors in various of our affiliated entities, filed a complaint against our CEO and Chris Galloway, our former CFO. The Plaintiffs allege that Messrs. Hatfield and Galloway mismanaged the affiliated businesses”Page 10 of the 2025 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.
Disclosure signals that moved the score
How this shows up in the verdict
- No litigation, bankruptcy, or going-concern
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?