FDD Items 3 & 4 · 2026 filing
Sandbox VR litigation history
What Sandbox VR 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 1
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Item 3 (litigation) · 1 matter disclosed
Litigation cases
The franchisor
Concluded (1)
Vortex Gaming Ltd. and Vortex Gaming T1 Ltd. v. GloStation Franchising USA, Inc. dba Sandbox; GloStation Franchising USA, Inc. v. Vortex Gaming Ltd. and Vortex Gaming T1 Ltd.
settledBrought by a franchisee · filed 2023-02-17 · Ontario Superior Court of Justice; American Arbitration Association · CV-23-00694933-0000; AAA Case No. 01-23-0001-0748
“Vortex Gaming Ltd. and Vortex Gaming T1 Ltd. v. GloStation Franchising USA, Inc. dba Sandbox, No. CV-23-00694933-0000 (Sup. Ct. of Justice, Ontario) Effective July 2, 2024, the parties agreed to a final settlement and release of the above referenced”Page 12 of the 2026 FDD, Item 3
Outcome: “Effective July 2, 2024, the parties agreed to a final settlement and release of the above referenced litigation and a related arbitration identified below involving Vortex Gaming Ltd. and Vortex Gaming T1 Ltd. (collectively, “Vortex”), our franchisees in Canada.”
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.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
GSUSA and nine affiliated Sandbox VR entities commenced voluntary Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court, Central District of California on August 13, 2020; joint Chapter 11 plan confirmed November 25, 2020, final decree February 11, 2021.
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?