FDD Items 3 & 4 · 2025 filing
SarahCare litigation history
What SarahCare 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
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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
Sarah Adult Day Services, Inc. filed three actions: (1) vs. Boston Adult Daycare Corp., Worcester Adult Daycare, LLC, and owners Alla Shlosman and Janet Goronshtein (Case No. 5:19-cv-672) for failure to pay royalties and breach - settled November 15, 2019 with partial payments, secured notes, and new 10-year franchise agreements; (2) vs. Beyda Adult Day Care, LLC et al. (Case No. 5:19-CV614) seeking confirmation of arbitration award regarding non-competition violation - court confirmed award October 2, 2019, settled with new 10-year franchise agreement effective April 28, 2020; (3) Arbitration demand vs. Beyda Adult Day Care, LLC et al. (Case No. 01-18-00016101) filed April 23, 2018 - arbitrator issued final award February 28, 2019 enjoining competing business operation after franchise expiration.
Disclosure signals that moved the score
How this shows up in the verdict
- 3 litigation matters (royalty disputes)
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?