FDD Items 3 & 4 · 2026 filing
Sweathouz litigation history
What Sweathouz 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
- 2
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Item 3 (litigation) · 2 matters disclosed · 1 pending listed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
HotBox Enterprises, LLC v. Legendary Sweat, LLC, et al., consolidated with Jamie Weeks v. Jessica Mortarotti, et al
settledLegendary Sweat, LLC (LS Opco, our affiliate) · filed 2020-06-01 · California Superior Court, County of Los Angeles · 20GDCV00469; 20STCV20681
“HotBox Enterprises, LLC v. Legendary Sweat, LLC, et al., No. 20GDCV00469 (the “HotBox Lawsuit”), consolidated on March 24, 2021, with Jamie Weeks v. Jessica Mortarotti, et al, No. 20STCV20681 (the “Related Lawsuit”), both filed in the California Superior Court, County of Los Angeles.”Page 11 of the 2026 FDD, Item 3
Outcome: “The parties to the cases entered into a confidential settlement agreement on February 2, 2022 under which (i) HotBox relinquished its assets to the LS Opco Parties, (ii) HotBox received $2,700,000 in proceeds, (iii) the parties released each other from all additional claims, and (iv) the lawsuits were dismissed.”
Officers and directors (individuals, not the company)
Pending (1)
In re WEH Liquidating, LLC, et al.
pendingKyle Casella (our officer) · filed 2023-03-30 · U.S. Bankruptcy Court, District of Delaware · Case No. 25-11602; Adv. Proc. No. 25-52457-TMH
“… Case No. 25-11602; Adv. Proc. No. 25-52457-TMH, filed in the United States Bankruptcy Court, District of Delaware.”Page 10 of the 2026 FDD, Item 3
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.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Until April 2024, two of the franchisor's officers (Jeffrey J. Teschke and Kyle Casella) were officers of Honors Holdings, LLC, a multi-unit Orangetheory Fitness franchisee. Approximately 7 months after they left, an involuntary Chapter 7 bankruptcy petition was filed against Honors Holdings, LLC on November 20, 2024 (Case No. 1-24-44875-ess, E.D.N.Y.); case remains pending.
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?