FDD Items 3 & 4 · 2026 filing
Sky Zone litigation history
What Sky Zone 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
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $828K
- 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/arbitration matters (Poole v. Platt/SFG settled for $828,426 in 2018; Ottway II arbitration settled in 2020 with $1,112,500 asset purchase) plus a 2023 California DFPI Consent Order against affiliate House of Trix, LLC for selling unregistered franchises ($5,000 penalty). No pending litigation.
Item 3 (litigation) · 3 matters disclosed
Litigation cases
The franchisor
Concluded (2)
Ottway II, LLC vs Sky Zone Franchise Group, LLC
settledBrought by a franchisee · filed 2018-10-11 · American Arbitration Association, Chicago, Illinois · 01-18-0003-7867
“… AAA Arbitration, Case No. 01-18-0003-7867. On October 11, 2018, Ottway II, LLC, a Sky Zone franchisee located in Daytona Beach, Florida, filed a demand for arbitration with the American Arbitration Association, in Chicago, Illinois.”Page 13 of the 2026 FDD, Item 3
Barclay Poole v. Jeffrey Platt and Sky Zone Franchise Group, LLC
settledfiled 2016-12-29 · Circuit Court for the State of Missouri, County of Cole · 16AC-CC00572
“… Circuit Court for the State of Missouri, County of Cole, Case No. 16AC-CC00572.”Page 13 of the 2026 FDD, Item 3
Outcome: “In May 2018, the parties reached a reached a settlement of all claims whereby we paid to Plaintiff the sum of $828,426, in exchange for a dismissal of all claims with prejudice and mutual releases.”
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
The Commissioner of Financial Protection and Innovation v. House of Trix, LLC
concludedGovernment or regulatory action · House of Trix, LLC · filed 2023-02-21 · California Commissioner of Financial Protection and Innovation
“The Commissioner of Financial Protection and Innovation v. House of Trix, LLC, Consent Order Dated”Page 13 of the 2026 FDD, Item 3
Outcome: “Consequently, as part of the Consent Order, HOT agreed to pay an administrative penalty of $5,000, deliver Notices of Violation to the two franchisees affected by its violations, and deliver a copy of the Consent Order to all California franchisees who purchased a franchise from HOT from April 22, 2020, to January 27, 2023.” (page 14)
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.
Disclosure signals that moved the score
How this shows up in the verdict
- Litigation concluded/settled, not active
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?