FDD Items 3 & 4 · 2025 filing
Prime IV Hydration & Wellness litigation history
What Prime IV Hydration & Wellness 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
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- $7K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Item 3 · 2 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
Virginia State Corporation Commission, Division of Securities and Retail Franchising v. Prime I.V. Hydration & Wellness, Inc.
pendingGovernment or regulatory action · filed 2025-04-03 · Virginia State Corporation Commission · SEC-2024-00045
“v. Prime I.V. Hydration & Wellness, Inc. (SEC-2024-00045) On April 3, 2025, in response to self-reporting, the Virginia State Corporation Commission, Division of Securities and Retail Franchising (“Division”) initiated an investigation against Prime I.V. Hydration & Wellness, Inc. (“Prime I.V.”), alleging seven violations of the Virginia Retail Franchising Act”Page 13 of the 2025 FDD, Item 3
Concluded (1)
Washington Department of Financial Institutions, Securities Division Action
concludedGovernment or regulatory action · filed 2023 · Washington Department of Financial Institutions, Securities Division · Case No. S-23-3663-23- CO01
“Washington Department of Financial Institutions, Securities Division Action. Case No. S-23-3663-23- CO01 (December 2023). We entered into a Development Agreement and two Franchise Agreements with two Washington franchisees and collected Development Fees and Initial Franchise Fees when we were required by the state of Washington to defer payment of these fees until the Centers were operational.”Page 14 of the 2025 FDD, Item 3
Outcome:“On December 11, 2023, we signed a Consent Order and agreed to pay $2,000 to the state to cover the costs of the investigation and agreed to cease and desist from violating the terms of our franchise registration permit with the state.”
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.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
On July 8, 2024, CSG Holdings CA, LLC and CSG Holdings TX, LLC each filed voluntary bankruptcy petitions under Chapter 7 of the U.S. Bankruptcy Code.
Disclosure signals that moved the score
How this shows up in the verdict
- No litigation/bankruptcy; audited
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?