FDD Items 3 & 4 · 2022 filing
Tailored Living litigation history
What Tailored Living disclosed about lawsuits, arbitrations and bankruptcy in the 2022 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2022
- Disclosures cover the prior ten years
Extracted from the 2022 Franchise Disclosure Document
Item 3: litigation
Administrative proceeding before Securities Commissioner of Maryland (Case No. 2004-0162). Aussie Pet Mobile entered into Consent Order on January 25, 2006 with Maryland Attorney General Securities Division requiring cease and desist from certain actions, rescission of franchise agreements with one franchisee, and implementation of new franchise law compliance procedures. No monetary sanctions.
Disclosed in the 2022 Franchise Disclosure Document
Item 4: bankruptcy
Mark N. Libby and Karen F. Libby, United States Bankruptcy Court, Central District of California, No. 9:14-BK-11673-DS. Chapter 7 petition filed September 2014. Petition granted and debtor discharged November 17, 2014.
Disclosure signals that moved the score
How this shows up in the verdict
- 2014 discharged personal bankruptcy of a VP (low weight)
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?