FDD Items 3 & 4 · 2025 filing

Rosati's Pizza litigation history

What Rosati's Pizza 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: 4; 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

One concluded shareholder derivative suit (Case No. 20-7762, settled December 23, 2021) involving trademark infringement and breach of fiduciary duty claims against officers Anthony and David Rosati. One pending case (Case No. 2022CH04376, filed May 6, 2022) filed by predecessor company RFI against franchisor and officers.

Item 3 (litigation) · 4 matters disclosed · 2 pending listed

Litigation cases

The franchisor

Pending (2)

Insurance Litigation
pending
Brought by a third party · filed 2024-09-26 · circuit court of Cook County, Illinois, Chancery Division
“… A second case, related to the first, which is in litigation with American Family Mutual Insurance Company was filed on September 26, 2024. American Family”Page 12 of the 2025 FDD, Item 3
Outcome: “Conversely, if Judge Mullen concludes that American Family does not owe a duty to defend, that ruling would be dispositive and conclude the coverage case. If Judge” (page 13)
Rosati’s Franchising, Inc. v. Anthony Rosati, David Rosati, Rosati’s Pizza Enterprises, Inc., Andrew Rosati, Darren Schmitt and Timothy McCarthy
pending
Brought by the franchisor · filed 2022-05-06 · Circuit Court of Cook County, County Department, Chancery Division, State of Illinois · 2022CH04376
“… Case No. 2022CH04376 was filed”Page 11 of the 2025 FDD, Item 3
Outcome: “From March 31, 2025, through April 16, 2025, a bench trial was held. The deadline for the parties to submit post-trial briefs is June 11, 2025, on which date the parties” (page 12)

Concluded (1)

Tynesha Brewer on behalf of M&T Chicago Style Pizza, LLC, v. Karen Krug, Andrew Rosati, Mountain Park Square, LLC, and Rosati’s Pizza Enterprises, Inc.
concluded
Brought by a franchisee · filed 2024-08-01 · Superior Court of the State of Arizona in and for the County of Maricopa · CV2024-019786
“Tynesha Brewer on behalf of M&T Chicago Style Pizza, LLC, v. Karen Krug, Andrew Rosati, Mountain Park Square, LLC, and Rosati’s Pizza Enterprises, Inc., Case Number”Page 13 of the 2025 FDD, Item 3
Outcome: “The Superior Court of the State of Arizona filed a motion to dismiss the amended complaint against Karen Krug, Mountain Park Square, LLC, Andrew Rosati, and Rosati’s Pizza”

Officers and directors (individuals, not the company)

Concluded (1)

Michael Rosati, individually and derivatively on behalf of Rosati’s Franchise Systems, Inc. and William Rosati, individually and derivatively on behalf of Rosati’s Franchise Systems, Inc. v. Anthony Rosati, David Rosati, and Power Play Distributors, LLC as defendants and Rosati’s Franchise Systems,
concluded
Brought by a third party · Anthony Rosati and David Rosati · filed 2020-12-29 · United States District Court for the Northern District of Illinois · 20-7762
“Michael Rosati, individually and derivatively on behalf of Rosati’s Franchise Systems, Inc. and William Rosati, individually and derivatively on behalf of Rosati’s Franchise”Page 11 of the 2025 FDD, Item 3
Outcome: “On December 23, 2021, the court approved a confidential settlement reached by the parties and dismissed the Action with prejudice. Under the terms of the”

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

4 litigation matters, 1 active predecessor Chancery suit
No bankruptcy, no 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?

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