FDD Items 3 & 4 · 2026 filing
The Bar Method litigation history
What The Bar Method 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
- $125K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Three disclosed matters, all involving predecessor entities: (1) Twin Cities Barbelles/O'Rourke arbitration alleging inadequate Item 19 disclosures and misrepresentation, settled 2021 for $125,000; (2) Illinois AG action (2009) for unregistered franchise sales, resolved by consent decree with $5,000 penalty; (3) New York AG investigation (2009) for unregistered franchise sales, resolved by Assurance of Discontinuance with $2,500 payment. No current/active litigation involving the franchisor itself.
Item 3 (litigation) · 3 matters disclosed
Litigation cases
The franchisor and its predecessor
Concluded (2)
Twin Cities Barbelles, LLC and Kayla O’Rourke v. The Bar Method Franchising, LLC
settledBrought by a franchisee · The Bar Method Franchising, LLC (TBMLLC, our predecessor) · filed 2020-05-21 · American Arbitration Association · 01-20-0005-2977
“… (American Arbitration Association Case No. 01-20-0005-2977, filed May 21, 2020).”Page 15 of the 2026 FDD, Item 3
Outcome: “we paid Ms. O’Rourke $125,000, which amount was funded by a third party seller in the SEB acquisition discussed above. Illinois v. The Bar Method Franchising Inc. and The Bar Method Inc. (Case No. 2009CH 0125, Seventh Judicial Circuit of Illinois, filed February 9, 2009).”
Illinois v. The Bar Method Franchising Inc. and The Bar Method Inc.
judgmentGovernment or regulatory action · The Bar Method Franchising, LLC (TBMLLC, our predecessor) and The Bar Method Inc. (TBM) · filed 2009-02-09 · Seventh Judicial Circuit of Illinois · 2009CH 0125
“… (Case No. 2009CH 0125, Seventh Judicial Circuit of Illinois, filed February 9, 2009).”Page 15 of the 2026 FDD, Item 3
Outcome: “agreed to the entry of a Final Judgment and Consent Decree in which, while not admitting any liability for any of the violations that the Illinois Attorney General alleged, TBMLLC and TBM agreed to the entry of a permanent injunction prohibiting TBMLLC and TBM from offering or selling franchises in” (page 16)
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
In the Matter of the Investigation by Andrew Cuomo, Attorney General of the State of New York, of The Bar Method Inc. and Carl Diehl
concludedGovernment or regulatory action · The Bar Method Inc. (TBM) and Carl Diehl (its Vice President) · filed 2009-04-02 · Attorney General of the State of New York · Assurance No. 08-108
“… (Assurance No. 08-108).”Page 16 of the 2026 FDD, Item 3
Outcome: “entered into an Assurance of Discontinuance (“AOD”) under which, without admitting any violation of the law, they agreed to offer rescission of an agreement that TBM signed in New York without being registered to sell franchises in that state.”
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
CEO Thomas Leverton was CEO of CEC Entertainment, Inc. which filed Chapter 11 bankruptcy in June 2020, approximately 4 months after he left; plan confirmed December 2020.
Disclosure signals that moved the score
How this shows up in the verdict
- Three litigation matters (2 AG consent actions, 1 settled Item 19 arbitration)
- Old, unrelated officer-affiliated bankruptcy (CEC Entertainment) — 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?