FDD Items 3 & 4 · 2025 filing
Rent-A-Wreck litigation history
What Rent-A-Wreck 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
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- $83K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
David Schwartz v. JJF Management Services, Inc., Rent-A-Wreck of America, Inc., and Bundy American, LLC. U.S. District Court for the District of Maryland. Dispute over wrongful franchise termination and exclusive territory rights. Multiple appeals and retrials. Final judgment in 2015 favored franchisor. Subsequent contempt finding in 2017 regarding reservation diversion.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Bundy American, LLC (franchisor's former parent, merged into franchisor in 2025 Corporate Reorganization) and Rent-A-Wreck of America, Inc. (Bundy American's parent) each filed Chapter 11 petitions on July 24, 2017 in the District of Delaware. Cases were dismissed on February 13, 2018. Priceless Rent-A-Car, LLC was not a debtor.
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?