FDD Items 3 & 4 · 2025 filing
Watters International Realty litigation history
What Watters International Realty 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
- 5
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Item 3 (litigation) · 5 matters disclosed · 1 pending listed
Litigation cases
The franchisor and its predecessor
Pending (1)
WIR Systems, Inc. d/b/a Watters International Realty v. Neumann Realty Corp. and Chad Neumann
pendingBrought against a franchisee · filed 2024-11-12 · United States District Court for the Western District of Texas, Austin Division · 1:25-CV-00009-RP
“… Cause No. 1:25-CV-00009-RP;”Page 10 of the 2025 FDD, Item 3
Concluded (1)
Marcianne Glennon v. Shirley Shaw, Chris Watters, Watters International Realty, LLC., and Kirk Edward Lewis
settledBrought by a third party · Watters International Realty, LLC (our affiliate and predecessor-in-interest) · filed 2015-09-03 · 126th Judicial District Court of Travis County, Texas · D-1-GN-15-003842
“… Cause No. D-1-GN-15-003842;”Page 11 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (2)
Highland Homes-Austin, LLC v. Luis Demetrio Urista and ATX WIR, LLC
dismissedATX WIR, LLC · filed 2023-11-22 · 98th District Court of Travis County, Texas · D-1-GN-23-008524
“… Cause No. D-1-GN-23-008524; In the 98th District Court of Travis County, Texas.”Page 10 of the 2025 FDD, Item 3
QJ Team, LLC, and Five Points Holdings, LLC v. Texas Association of Realtors, Inc., et al. (including ATX WIR LLC)
settledBrought by a third party · ATX WIR, LLC · filed 2023-11-11 · United States District Court For the Eastern District of Texas Sherman Division · 4:23-CV- 01013
“QJ Team, LLC, and Five Points Holdings, LLC, individually and on behalf of all other persons similarly situated v. Texas Association of Realtors, Inc., Austin Board of Realtors, Inc., Metrotex Association of Realtors, Inc., Houston Association of Realtors,”Page 11 of the 2025 FDD, Item 3
Officers and directors (individuals, not the company)
Concluded (1)
Amanda Mayorga-Monsisvais and Michael Benavidez v. Tyler Grimshaw, et al., Chris Watters d/b/a Watters International Realty, et al.
settledBrought by a third party · Chris Watters · filed 2021-10-13 · 455th Judicial District of Travis County, Texas · D-1-GN-21- 006159
“Amanda Mayorga-Monsisvais and Michael Benavidez v. Tyler Grimshaw, Susan Grimshaw, Alvin J. Gattis, Shirley Gattis, Grant Randall, Dawn McCourry, Chris Watters d/b/a Watters International Realty, Purchasing Fund 2020-1, LLC, Homeward Title, LLC and First National Title Insurance Company, Cause No. D-1-GN-21- 006159;”Page 11 of the 2025 FDD, Item 3
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
- No Item 19 disclosure, no bankruptcy, no going-concern
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?