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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $125K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- 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.
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?