FDD Items 3 & 4 · 2025 filing

Smoothie Factory / Smoothie Factory+Kitchen Kiosk litigation history

What Smoothie Factory / Smoothie Factory+Kitchen Kiosk 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 (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: $9K; As stated in Item 3

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

3 concluded actions, all franchisor-as-plaintiff breach of contract suits against franchisees (unpaid royalties, post-termination covenant violations). Settlements of $9,000 and $4,500; one resolved via permanent injunction.

Item 3 (litigation) · 3 matters disclosed

Litigation cases

The franchisor

Concluded (3)

Smoothie Holdings FC, LLC v. Extremeline Nutrition, LLC, Raymond Suerte and Elisa Nawas
concluded
Brought against a franchisee · filed 2024-04-23 · District Court, Dallas County, Texas · DC-24-05965
“… Case No: DC-24-05965 (District Court, Dallas County, Texas, April 23, 2024) Franchisor filed a Petition and Application for Temporary Restraining Order against Franchisee for breach of contract for failing to comply with post-expiration covenants under the Franchise Agreement.”Page 13 of the 2025 FDD, Item 3
Smoothie Holdings FC, LLC v. Fortune Ajebon, LLC, Fortune Ajebon and Manling Li
settled
Brought against a franchisee · filed 2024-05-24 · District Court, Dallas County, Texas · DC-24-07667
“… Case No: DC-24-07667 (District Court, Dallas County, Texas, May 24, 2024) Franchisor filed a Petition and Application for Temporary Restraining Order, Temporary and Permanent”Page 13 of the 2025 FDD, Item 3
Outcome: “and to pay Franchisor $4,500. Other than these actions, no litigation is required to be disclosed in this disclosure document.”
Smoothie Holdings FC, LLC v. Farhaj Haq and Wahaj Haq
settled
Brought against a franchisee · filed 2022-11-15 · Justice Court, Precinct No. 1, Dallas County, Texas · JPC-22-00979-11
“… Case No: JPC-22-00979-11 (Justice Court, Precinct No. 1, Dallas County, Texas, November 15, 2022) Franchisor sued Franchisee for breach of contract for unpaid royalties after premature termination of the store in the amount of $16,153.05.”Page 13 of the 2025 FDD, Item 3
Outcome: “the Franchisee agreed to pay Franchisor $9,000 in immediately available funds and the parties exchanged mutual releases.”

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?

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