FDD Items 3 & 4 · 2025 filing
Purchase Green litigation history
What Purchase Green 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
- Not extracted
- 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
(1) Hyden v. Versacourt, LLC et al. (E.D. Tenn., filed 2020) - fraud/misrepresentation claims re: business purchase agreement; settled and dismissed Dec 2021, no payment by individual defendants. (2) CA Dept. of Financial Protection & Innovation v. Path to Prosperity, LLC (Consent Order, March 2022) - PTP sold unregistered franchises 2013-2018 without FDD, violated CA Franchise Investment Law; paid $47,000 fine plus investigation costs.
Disclosure signals that moved the score
How this shows up in the verdict
- 2 matters incl. settled fraud suit and 2022 CA DFPI consent order
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?