FDD Items 3 & 4 · 2025 filing
Re-Bath litigation history
What Re-Bath 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
- 4
- 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
One pending AAA arbitration (Remodeling Solutions, Inc., filed March 2025) alleging improper technology fee charges, breach of contract and implied covenant, seeking $149,999 plus fees. Three completed matters: (1) 2016 territorial-protection suit by franchisee group settled with new franchise agreement form and fee payments; (2) 2018 arbitration by three franchisees over contract breach, resulting in $1,002,107 award to claimants, partial settlement with one claimant ($688,000 payment), and Delaware court confirming the award in 2020; (3) 2018 arbitration/litigation with a marketing vendor (1-800 BATHTUB, LLC) over a marketing services agreement and phone number, resulting in a reduced $354,792.79 award after Michigan court proceedings and an unsuccessful cross-appeal (affirmed April 2024).
Disclosure signals that moved the score
How this shows up in the verdict
- 4 litigation matters incl. active 2025 arbitration over tech-fee/breach
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?