FDD Items 3 & 4 · 2023 filing
Ufc Gym litigation history
What Ufc Gym disclosed about lawsuits, arbitrations and bankruptcy in the 2023 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
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $275K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2023
- Disclosures cover the prior ten years
Extracted from the 2023 Franchise Disclosure Document
Item 3: litigation
Three cases: (1) Jeffrey Mathews et al v. UG Franchise Operations, LLC - fraud, DTPA violation, breach of contract, unfair competition - settled $275,000; (2) James Biggs v. UG Franchise Operations, LLC - breach of contract, rescission, declaratory relief - settled $125,000; (3) UG Franchise Operations, LLC v. Frank Carranza - declaratory judgment with counterclaim for fraud and unfair trade practices - settled $30,000
Item 3 (litigation) · 3 matters disclosed
Litigation cases
The franchisor
Concluded (3)
UG Franchise Operations, LLC v. Frank Carranza, et. Al.
settledBrought by the franchisor · filed 2020 · Superior Court of Orange County, California · 30-20-0117-5206-CU-MC-NJC
“… (Case No. 30-20-0117-5206-CU-MC-NJC). In December 2020, we filed a declaratory judgment action in the Superior Court of Orange County with respect to the enforceability of membership agreements at a former franchised location.”Page 13 of the 2023 FDD, Item 3
Outcome: “The parties subsequently reached a settlement agreement in which we paid the plaintiff $30,000. Other than these actions, no litigation is required to be disclosed in this Disclosure Document.”
James Biggs, Lucky Duck Enterprises, LLC v. UG Franchise Operations, LLC
settledBrought by a franchisee · filed 2019 · American Arbitration Association (compelled from Superior Court of Orange County) · 02-19-0002-5893
“… (American Arbitration Association, No 02-19-0002-5893).”Page 13 of the 2023 FDD, Item 3
Outcome: “The parties subsequently reached a settlement agreement in which we paid the plaintiff $125,000. UG Franchise Operations, LLC v. Frank Carranza, et.”
Jeffrey Mathews et al v. UG Franchise Operations, LLC et al
settledBrought by a franchisee · filed 2016-05-27 · Superior Court of Orange County, California · 30-2016-00855160-CU-BT-CJC
“… (Case No. 30-2016-00855160-CU-BT- CJC). On or around May 27, 2016, Matthews, a former franchisee filed an action in the Superior Court of Orange County alleging fraud, violation of the Texas”Page 13 of the 2023 FDD, Item 3
Outcome: “The parties subsequently reached a settlement agreement in which we paid the plaintiff $275,000. James Biggs, Lucky Duck Enterprises, LLC v. UG Franchise Operations, LLC (American Arbitration Association, No 02-19-0002-5893).”
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
- Three settled cases including franchisee fraud claims ($275K, $125K)
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?