FDD Items 3 & 4 · 2025 filing
The Budlong Southern Chicken litigation history
What The Budlong Southern Chicken 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 & 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
BC Licensing, LLC v. DMD Chicken, LLC et al. (United States District Court for the District of Nevada, Case No. 2:25-cv-00453-JAD-NJK, filed November 19, 2024). BC Licensing sued former franchisee DMD Chicken and co-founders Frederick Burgess and Jack Flechner for breach of contract, breach of personal guarantees, and interference with contractual relations. DMD filed counterclaim against BCIP, LLC, JRS Hospitality LLC, Perry Rogers, Shaquille O'Neal, Corey Jenkins, Joshua Halpern, Matthew Silverman and Samuel Stanovich for fraudulent and negligent misrepresentation, breach of implied covenant of good faith and fair dealing, and Nevada deceptive trade practices act violations. As of April 30, 2025, parties await response to counterclaim.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
In re Roti Restaurants, LLC (United States Bankruptcy Court for the Northern District of Illinois, Case No. 24-13827, filed August 23, 2024). Roti, a fast-casual restaurant chain, filed for Chapter 11 reorganization due to rising costs, mixed location performance, and difficult market conditions. Court issued plan confirmation order on February 26, 2025.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation with fraud/misrepresentation counterclaim naming officer
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?