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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 7; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $50K; 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.

Item 3 (litigation) · 7 matters disclosed · 1 pending listed

Litigation cases

The franchisor and its predecessor

Pending (1)

Rocksolid Granit (USA), Inc. v. Kingdom Renovations, Inc., Jarren Nagy and David Hermann
pending
Brought against a franchisee · Rocksolid Granit (USA), Inc. (our Predecessor; Item 3 says 'We sued') · filed 2023-08-02 · U.S. District Court, Southern District of Florida · 1:23-c-v-22883
“… and was filed in the United States District Court for the Southern District of Florida under Case Number 1:23-c-v-22883.”Page 13 of the 2025 FDD, Item 3

Concluded (4)

Rocksolid Granit (USA), Inc. v. Granite Transformations Ventura, Inc. and Terrance Riedeman
settled
Brought against a franchisee · Rocksolid Granit (USA), Inc. (our Predecessor; Item 3 says 'We sued') · filed 2022-07-13 · U.S. District Court, Southern District of Florida · 1:22-cv-22141
“… and was filed in the United States District Court for the Southern District of Florida under Case Number 1:22-cv-22141.”Page 13 of the 2025 FDD, Item 3
Outcome: “The case was settled by the parties on March 27, 2023 by way of a Confidential Settlement Agreement. As part of the settlement, the former franchisee and its owner also agreed to the entry of a Consent Judgment which was entered by the Court on March 29, 2023.”
Rocksolid Granit (USA), Inc. v. MJM Consulting, Inc., Michael R. Moffitt and Janice R. Moffitt
concluded
Brought against a franchisee · Rocksolid Granit (USA), Inc. (our Predecessor; Item 3 says 'We sued') · filed 2021-08-24 · U.S. District Court, Southern District of Florida · 1:21-cv-23055
“… and was filed in the in the United States District Court for the Southern District of Florida under Case Number 1:21-cv-23055.”Page 12 of the 2025 FDD, Item 3
Outcome: “The case was terminated as a result of the former franchisee and its owners filing bankruptcy in March 23, 2022. f. On July 13, 2022, a suit was filed against a former franchisee and its owner in the Ventura, California territory.” (page 13)
Fatt Katt Enterprises, Inc. d/b/a Granite Transformations of Atlanta v. Rocksolid Granit (USA), Inc.
settled
Brought by a franchisee · Rocksolid Granit (USA), Inc. (our Predecessor) · filed 2017-05-24 · U.S. District Court, Northern District of Georgia; American Arbitration Association · 1:17-cv-01900-MHC; AAA 01-18-0002-4893
“… in the United States District Court for the Northern District of Georgia, Case 1:17-cv-01900-MHC.”Page 12 of the 2025 FDD, Item 3
Outcome: “The parties settled the case with Respondents agreeing to pay Predecessor $50,000 and to cease all use of Rocksolid's trademarks.”
Tessina Holdings Pty., Ltd. v. Trend S.P.A., Rocksolid Granit USA, Inc., Giuseppe Bisazza and Andrea Di Giuseppe
dismissed
Rocksolid Granit USA, Inc. (our Predecessor) · filed 2016-12-09 · U.S. District Court, Southern District of Florida · 0:16-cv-62899-JEM
“… in the U.S. District Court for the Southern District of Florida, Civil Action No. 0:16-cv-62899-JEM.”Page 11 of the 2025 FDD, Item 3
Outcome: “each of the three suits listed in this section were resolved following a global mediation in October 2018. Following mediation, the Parties agreed to resolve the Florida action and the Australian actions listed in this Item 3 immediately above, on the following terms: (a) the Mackenzie Parties transferred their 49% interest in TAUS to the Trend Parties;” (page 12)

Parent, affiliates, master franchisor and subfranchisor

Concluded (2)

Matter with no printed caption
settled
Brought by the franchisor · Granite Transformations Pty. Ltd. (GTA, our Australian affiliate) · filed 2017-08-16 · Federal Court of Australia, District Registry Victoria, General Division · VID911/2017
“On August 16, 2017, GTA commenced proceedings against Apex Distribution Pty Ltd, Colin Mackenize, Brad MacDonald and Arthur Arundel Smith in Federal Court of Australia, District 7 Registry Victoria, General Division (VID911/2017).”Page 11 of the 2025 FDD, Item 3
Outcome: “each of the three suits listed in this section were resolved following a global mediation in October 2018. Following mediation, the Parties agreed to resolve the Florida action and the Australian actions listed in this Item 3 immediately above, on the following terms: (a) the Mackenzie Parties transferred their 49% interest in TAUS to the Trend Parties;” (page 12)
Rocksolid Granit (Australia) Pty. Ltd. and Granite Transformations Pty. Ltd. v. Colin Mackenzie and Sorrento (NSW) Pty. Ltd.
settled
Brought by the franchisor · Granite Transformations Pty. Ltd. (GTA, our Australian affiliate) and Rocksolid Granit (Australia) Pty. Ltd. (RSGA) · filed 2016-09-01 · Federal Court of Australia, District Registry Victoria, General Division · VID 1049/2016
“Rocksolid Granit (Australia) Pty. Ltd. (“RSGA”) and Granite Transformations Pty. Ltd. v. Colin Mackenzie and Sorrento (NSW) Pty.”Page 11 of the 2025 FDD, Item 3
Outcome: “each of the three suits listed in this section were resolved following a global mediation in October 2018. Following mediation, the Parties agreed to resolve the Florida action and the Australian actions listed in this Item 3 immediately above, on the following terms: (a) the Mackenzie Parties transferred their 49% interest in TAUS to the Trend Parties;” (page 12)

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.

Disclosed in the 2025 Franchise Disclosure Document

Item 4: bankruptcy

E-Stone USA Corporation, Rocksolid Granit (USA), Inc. and Rocksolid Granit (USA), LLC filed a Chapter 11 bankruptcy petition, Case No. 23-20805-PDR, United States Bankruptcy Court, Southern District of Florida, Fort Lauderdale Division, and the court later approved their Plan of Reorganization. The petition and approval dates the filing prints contradict each other, so neither is shown.

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)

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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