FDD Items 3 & 4 · 2026 filing
Sauce Pizza / Wine litigation history
What Sauce Pizza / Wine 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
- 18
- Item 3, as counted in the filing
- Largest disclosed settlement
- $4.0M
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Two concluded litigation matters disclosed: (1) Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., et al. (Washington Superior Court, Case No. 15-2-15120-7) - Filed June 2015, alleged FIPA violations and misrepresentation regarding franchise financial performance. Settled March 2016 for $20,000. (2) KOHO, Inc. v. Kahala Franchising, L.L.C. (California Superior Court, Case No. BC572565) - Filed February 2015, alleged breach of contract and unjust enrichment. Cross-complaint filed. Bench trial concluded June 2016 with judgment for Kahala. Attorney's fees awarded to Kahala in amount of $205,000. Parties settled in June 2017 with Kahala repurchasing KOHO's Area Developer territory for $75,000.
Disclosure signals that moved the score
How this shows up in the verdict
- 15 litigation items but all affiliate/historical, none against this brand
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?