FDD Items 3 & 4 · 2025 filing
Real Producers litigation history
What Real Producers 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 2
- 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Two administrative actions disclosed involving affiliate Neighborhood Networks Publishing, Inc. (now The N2 Company): (1) California Department of Financial Protection and Innovation (Order I.D. 337865) - alleged violations of California Franchise Investment Law for offering/selling franchises without required disclosure documents prior to 2016 registration. Settled October 2020 via Consent Order requiring cease and desist and $10,000 reimbursement for investigative costs. (2) Washington Department of Financial Institutions Securities Division (Order No. S-18-2456-18-CO01) - alleged violations of Washington Franchise Investment Protection Act for offering/selling franchises without disclosure documents and making unauthorized financial performance representations. Settled April 2019 via Consent Order requiring compliance, cease and desist, and $4,000 reimbursement for investigative costs. Neither party agreed with findings but settled to resolve matters.
Item 3 (litigation) · 2 matters disclosed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Concluded (2)
In the Matter of Neighborhood Networks Publishing, Inc.
concludedGovernment or regulatory action · Neighborhood Networks Publishing, Inc. (now The N2 Company) · State of California Department of Financial Protection and Innovation · 337865
“… State of California Department of Financial Protection and Innovation, Order I.D. 337865.”Page 13 of the 2025 FDD, Item 3
Outcome: “in October 2020, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of California. Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed (1) to cease and desist from violations of the California Franchise Investment Law and (2) to reimburse the state of California for its investigative costs in the amount of $10,000.”
In the Matter of Neighborhood Networks Publishing, Inc.
concludedGovernment or regulatory action · Neighborhood Networks Publishing, Inc. (now The N2 Company) · State of Washington Department of Financial Institutions Securities Division · S-18-2456-18-CO01
“… State of Washington Department of Financial Institutions Securities Division, Order No. S-18-2456-18-CO01.”Page 13 of the 2025 FDD, Item 3
Outcome: “in April 2019, Neighborhood Networks Publishing, Inc. entered into a Consent Order with the state of Washington. Under the Consent Order, Neighborhood Networks Publishing, Inc. agreed (1) to comply with the Washington Franchise Investment Protection Act, in all respects (2) to cease and desist from”
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 bankruptcy/going-concern; audited + Item 19
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?