FDD Items 3 & 4 · 2025 filing
The Flying Biscuit Cafe litigation history
What The Flying Biscuit Cafe 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
- 2
- 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
Adversary Proceeding No. 12-05429 filed August 24, 2012 in U.S. Bankruptcy Court for Northern District of Georgia. Bankruptcy Trustee sued franchisor's affiliates, officers, and directors alleging fraudulent transfers, constructively fraudulent transfers, and wrongful distributions related to sale of S&Q Shack, LLC to Edmonds Capital Fund I, LLC. Claims included improper debt forgiveness and distribution of sale proceeds. Proceeding stayed pending completion of underlying bankruptcy litigation.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Two affiliates (S&Q Shack, LLC and Raving Brands, Inc.) were placed into involuntary Chapter 7 bankruptcy in 2010 following 2009 petitions by creditor BV Retail, LLC; resolved via global settlement in 2016-2017
Disclosure signals that moved the score
How this shows up in the verdict
- Old affiliate bankruptcies (2010) settled 2016-17 — 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?