FDD Items 3 & 4 · 2026 filing
Sharkey’s Cuts for Kids litigation history
What Sharkey’s Cuts for Kids 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)
- 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
One arbitration matter: a former 3-unit franchisee (Marion Edward "Ed" Myrick) filed a claim in Nov 2022 seeking return of initial fees for alleged breach of pre-opening obligations; resolved via mutual settlement in Dec 2022 with no admission of liability, and the franchisee's units were terminated with initial fees refunded.
Item 3 (litigation) · 1 matter disclosed
Litigation cases
The franchisor
Concluded (1)
Marion Edward Myrick a/k/a Ed Myrick vs. Sharkey’s Cuts for Kids International Co., LLC
settledBrought by a franchisee · filed 2022-11-07 · American Arbitration Association · 01-22-0004-7039
“… (Case No. 01-22-0004-7039).Claimant, a former franchisee of three franchises, filed a statement of claim against”Page 10 of the 2026 FDD, Item 3
Outcome: “In December 2022, the parties reached a mutual settlement to resolve the arbitration, without any liability or admission of wrongdoing, and Sharkey’s Cuts for Kids took action to terminate and remove the Claimant from the system and refunded the initial franchise fees paid by Claimant.” (page 11)
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.
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?