FDD Items 3 & 4 · 2024 filing
Wahoo's Fish Taco litigation history
What Wahoo's Fish Taco disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
- 2
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $90K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Two cases disclosed: (1) Double Overtime, LLC v. Wahoo's Fish Taco, LLC arbitration (Case No. 01-14-0000-3205 JIG) filed May 2, 2014, alleging violations of California Franchise Investment Law, negligent misrepresentation, unfair competition, breach of contract, and breach of implied covenant of good faith and fair dealing. Settled December 31, 2014 with franchise agreement termination. (2) Theodore Smith v. Wahoo's Fish Tacos et al. (Case No. A-21-845023-C, District Court, Clark County, Nevada) filed December 6, 2021, alleging negligence, negligent hiring/supervision/retention, joint venturer liability, intentional infliction of emotional distress, and battery arising from patron altercation on December 21, 2019. Settled April 12, 2023 for $90,000 with dismissal with prejudice filed May 17, 2023.
Item 3 (litigation) · 2 matters disclosed
Litigation cases
The franchisor
Concluded (2)
Theodore Smith v. Wahoo’s Fish Tacos, Lamkone Restaurants, Inc., Adam McLaughlin, Halie Lunato, Does I-V and Roe Corporations VI-X
settledBrought by a third party · filed 2021-12-06 · District Court, Clark County, Nevada · A-21-845023-C
“Plaintiff filed a Complaint and Demand for Jury Trial alleging negligence, negligent hiring, supervision and retention and joint venturer liability as to Wahoo’s Fish Tacos and Lamkone Restaurants, Inc., and intentional infliction of emotional distress and”Page 8 of the 2024 FDD, Item 3
Outcome: “The parties agreed to resolve and settle all claims between them, and entered into a Release and Settlement Agreement on April 12, 2023 with Defendant’s payment of consideration in the amount of $90,000 to Plaintiff.”
Double Overtime, LLC, Jane Casey, Sean Casey, Laura Slajchert and Davis Slajchert v. Wahoo's Fish Taco, LLC, Renato Lee and Tom Orbe
settledBrought by a franchisee · filed 2014-05-02 · American Arbitration Association · 01-14-0000-3205 JIG
“… (Case No. 01-14-0000-3205 JIG, American Arbitration Association) was filed on May 2, 2014.”Page 8 of the 2024 FDD, Item 3
Outcome: “On December 31, 2014, the parties entered into a Settlement Agreement, pursuant to which we terminated the Franchise Agreement.”
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
- 2 litigation matters (settled arbitration + patron injury claim, not systemic)
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?