FDD Items 3 & 4 · 2025 filing
Village Inn litigation history
What Village Inn 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
- 21
- Item 3, as counted in the filing
- Largest disclosed settlement
- $20K
- 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
One concluded case involving Extreme Pita Franchising USA, Inc. (predecessor) settled for $20,000 on March 11, 2016. One concluded case involving Kahala Franchising, L.L.C. with cross-complaints filed but resolution not detailed in provided text.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
American Blue Ribbon Holdings, LLC filed Chapter 11 bankruptcy on January 27, 2020 in District of Delaware (Case 1:20-BK-10161). Plan of reorganization confirmed September 16, 2020. Final decree entered September 30, 2021; case terminated October 19, 2021.
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?