FDD Items 3 & 4 · 2025 filing

The Coffee Bean & Tea Leaf litigation history

What The Coffee Bean & Tea Leaf 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: 5; 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

Fisher v. International Coffee & Tea, LLC (pending class action, filed August 8, 2023) alleges deceptive trade practices regarding sustainability claims in K-Cup advertising. New Amsterdam Coffee & Tea Co., LLC et al. v. International Coffee & Tea, LLC (concluded arbitration) involved claims for misrepresentation, breach of contract, and unfair business practices related to area development agreements.

Item 3 (litigation) · 5 matters disclosed · 1 pending listed

Litigation cases

The franchisor and its predecessor

Pending (1)

Fisher v. International Coffee & Tea, LLC
pending
Brought by a third party · International Coffee & Tea, LLC (ICT) · filed 2023-08-08 · San Diego County Superior Court · 37-2023- 00037152-CU-BT-CTL
“… San Diego County Superior Court Case No. 37-2023- 00037152-CU-BT-CTL. On August 8, 2023, Plaintiff Lizette Fisher filed a class action lawsuit against International Coffee & Tea, LLC (“ICT”) alleging deceptive trade practices regarding sustainability claims in ICT’s advertising of coffee and tea K-Cup products.”Page 14 of the 2025 FDD, Item 3

Concluded (3)

Viet Café Trading Company Limited v. CBTL Franchising, LLC and International Coffee & Tea, LLC
dismissed
Brought by a franchisee · CBTL Franchising, LLC and International Coffee & Tea, LLC · filed 2020-08-11 · International Chamber of Commerce – International Court of Arbitration · 25568/PDP
“… International Chamber of Commerce – International Court of Arbitration, Case No. 25568/PDP.”Page 15 of the 2025 FDD, Item 3
Outcome: “The arbitration was formally dismissed on November 11, 2020. Affiliate Litigation In re Smashburger IP Holder, LLC, et al., Case No. LA CV19-00993-JAK (filed May 16, 2019).”
Robert Azinian v. CBTL Franchising, LLC; International Coffee and Tea, LLC; Robert “Bob” Kaufman
settled
Brought by a franchisee · CBTL Franchising, LLC and International Coffee and Tea, LLC · filed 2015-05-07 · Los Angeles Superior Court · BC 581158
“… Los Angeles Superior Court Case No. BC 581158.”Page 15 of the 2025 FDD, Item 3
Outcome: “pursuant to which ICT made a $10,000 donation to charity and plaintiff dismissed his remaining claims, with prejudice. Viet Café Trading Company Limited v. CBTL Franchising, LLC and International Coffee & Tea, LLC;”
New Amsterdam Coffee & Tea Co., LLC, et al. v. International Coffee & Tea, LLC, et al.
settled
Brought by a franchisee · International Coffee & Tea, LLC (ICT) and CBTL Franchising, LLC (CBTL) · filed 2014-01-30 · American Arbitration Association (related suit: Los Angeles County Superior Court Case No. BC545396) · 72-20-1400- 0138; BC545396
“… (American Arbitration Association, Case No. 72-20-1400- 0138) Between January 12, 2011 and May 25, 2012, CBTL entered into four area development agreements with New Amsterdam Coffee & Tea, LLC, NACT Southern Connecticut, LLC;”Page 14 of the 2025 FDD, Item 3
Outcome: “Smedra and Srulowitz agreed to pay ICT $4,050,000 over a 32-month period and stipulated to an arbitration award in ICT’s favor for the same amount.”

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

In re Smashburger IP Holder, LLC, et al.
settled
Brought by a third party · Smashburger Franchising LLC and Smashburger IP Holder (our affiliates) · filed 2019-05-16 · LA CV19-00993-JAK
“… Case No. LA CV19-00993-JAK (filed May 16, 2019). Plaintiffs filed class action lawsuits that were consolidated against Smashburger Franchising LLC, IP Holder, and Jollibee.”Page 15 of the 2025 FDD, Item 3
Outcome: “the court approved a class settlement wherein we paid $2,500,000 for attorneys’ fees, costs, and class member monetary claims.”

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

No bankruptcy/going-concern

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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