FDD Items 3 & 4 · 2026 filing
Real Property Management litigation history
What Real Property Management disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $175K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Two pending/recent franchisee disputes (Solano Properties - pending; Rego - settled for $175,000 paid to Franchisor) allege Franchisor's post-termination restrictive covenants violate California UCL, met with Franchisor counterclaims for breach of contract. Three older, resolved cases (Gitlin 2016-2017, Garcia 2014-2018, Bechard 2014-2017) involved Predecessor, mostly tenant/franchisee disputes settled for modest amounts ($13,000-$75,000) or franchise buybacks.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
No bankruptcy involving the Franchisor itself; disclosed bankruptcies are of KKR portfolio companies (Marelli Holdings, The Collected Group, Envision Healthcare, Genesis Care, IPI Legacy Liquidation, Cafe Coffee Day) unrelated to Franchisor operations.
Disclosure signals that moved the score
How this shows up in the verdict
- 4 litigation matters (non-compete disputes) vs 450 units — routine
- Bankruptcies are unrelated KKR portfolio cos, not franchisor
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?