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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 2
- Item 3, as counted in the filing
- Largest disclosed settlement
- $152
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Vortex Gaming Ltd./Vortex Gaming T1 Ltd. (Canadian franchisees) sued in Ontario Superior Court seeking to enjoin termination of franchise agreements and CAD $151.6M in damages; franchisor separately filed an AAA arbitration against Vortex; both matters resolved by a final settlement effective July 2, 2024.
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?