FDD Items 3 & 4 · 2025 filing
TREND Transformations / GRANITE Transformations litigation history
What TREND Transformations / GRANITE Transformations 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
- 7
- Item 3, as counted in the filing
- Largest disclosed settlement
- $500K
- As stated in Item 3
- 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
Three actions involving Colin Mackenzie and entities he owned vs. franchisor affiliates. Two lawsuits filed in Federal Court of Australia (VID 1049/2016 and related amended claim) and one in U.S. District Court Southern District of Florida. All three cases resolved following global mediation and settlement agreement. Australian cases involved allegations of breach of director duties, unauthorized withdrawals (AUS$299,000), competitive conduct, and wind-up proceedings.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
E-Stone USA Corporation, Rocksolid Granit (USA), Inc. and Rocksolid Granit (USA), LLC filed Chapter 11 liquidation bankruptcy petition on December 28, 2024. Case No. 23-20805-PDR, United States Bankruptcy Court, Southern District of Florida, Fort Lauderdale Division. Plan of Reorganization approved by Court on September 24, 2024.
Disclosure signals that moved the score
How this shows up in the verdict
- Recent affiliate Chapter 11 bankruptcy (E-Stone/Rocksolid Granit, filed Dec 2024)
- 6 litigation matters relative to small 34-unit system
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?