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FranchiseVerdict

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.

    settled

    Brought 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?