FDD Items 3 & 4 · 2025 filing

Sylvan Learning litigation history

What Sylvan Learning 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: 4; 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: 2025; Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

Item 3 discloses four concluded matters, all involving affiliated brands rather than Sylvan Learning itself: (1) Maryland Securities consent order re Snapology unregistered franchise sales (2016); (2) UATP Management v. Leap of Faith Adventures (TX) settled 2022 with $5M payment to LOFA; (3) Unleashed Services v. Pabin re Class 101 employment, resolved 2024 via $275,000 buyback; (4) California Commissioner consent order re Premier Martial Arts unregistered sales, $10,000 penalty (2021). No litigation required to be disclosed against Sylvan.

Item 3 (litigation) · 4 matters disclosed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Concluded (4)

Unleashed Services, LLC vs. Tom Pabin vs. Josh Wall
dismissed
Brought by the franchisor · Unleashed Services, LLC · filed 2023-09-18 · 48th Judicial District of Tarrant County, Texas · 48-346174-23
“Class 101 Concluded: Unleashed Services, LLC vs. Tom Pabin vs. Josh Wall, 48th Judicial District of Tarrant County, Texas, bearing Cause No. 48-346174-23.”Page 15 of the 2025 FDD, Item 3
The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International and/or Premier Martial Arts
concluded
Government or regulatory action · Premier Franchising Group, LLC (PMA) · filed 2021-11-18 · California Commissioner of Financial Protection and Innovation
“Premier Martial Arts Concluded: The Commissioner of Financial Protection and Innovation v. Premier Franchising Group, LLC doing business as Premier Martial Arts International (“PMAI”) and/or Premier Martial Arts (“PMA”).”Page 16 of the 2025 FDD, Item 3
Outcome: “Pursuant to the consent order, PMA agreed to (1) refrain from violating Sections 31110 and 31200, (2) pay a $10,000 administrative penalty, (3) file a post-effective amendment updating PMA’s then-current registration to include the consent order, and (4) disclose the existence of each and every California studio in Item 20 and in the exhibit list of current and former franchisees in any PMA disclosure document filed ...”
UATP Management, LLC v. Leap of Faith Adventures, LLC
settled
Brought by the franchisor · UATP Management, LLC (Urban Air) · filed 2018-07-09 · District Court of Tarrant County, Texas · 017-300796-18
“Urban Air Adventure Parks Concluded: UATP Management, LLC v. Leap of Faith Adventures, LLC (District Court of Tarrant County, Texas, Case No. 017-300796-18).”Page 15 of the 2025 FDD, Item 3
In the Matter of Snapology Community Programs, L.P. and its successor Snapology, LLC
concluded
Government or regulatory action · Snapology, LLC · Securities Commissioner of Maryland (administrative proceeding) · 2015-0429
“Snapology Concluded: In the Matter of Snapology Community Programs, L.P. and its successor Snapology, LLC, Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2015-0429.”Page 14 of the 2025 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.

Disclosure signals that moved the score

How this shows up in the verdict

Parent company (Sylvan Learning/Cambium Group) has history of litigation across multiple brands (Snapology, Urban Air, Class 101, Premier Martial Arts) indicating systemic compliance or operational issues

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?

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