FDD Items 3 & 4 · 2025 filing
Renegade Insurance litigation history
What Renegade Insurance 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
Four matters disclosed, all resolved via settlement or arbitration dismissal: (1) Sarah Reichling v. Renegade Insurance LLC - fraud/breach of contract claims by former independent contractor, settled for $5,000; (2) Lilia Sanjuan v. Renegade Insurance LLC - similar fraud claims by former independent contractor, settled for $5,000; (3) Larisa Paris v. Renegade Insurance LLC; Rashik Adhikari - AAA arbitration alleging Texas Deceptive Trade Practices Act violations, seeking $10,000,000, all claims against RIL dismissed and plaintiff ordered to reimburse attorney fees; (4) Jeffrey Grady v. Renegade Insurance LLC et al. - wrongful termination/whistleblower retaliation by former employee, settled via mutual agreement in December 2024.
Disclosure signals that moved the score
How this shows up in the verdict
- 4 resolved litigation matters (fraud/breach) — high relative to 1 unit
- All matters settled/dismissed, no bankruptcy or going-concern
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?