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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 5
- Item 3, as counted in the filing
- Largest disclosed settlement
- $75K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Four cases total: (1) PENDING - WIR Systems, Inc. v. Neumann Realty Corp. and Chad Neumann (Cause No. 1:25-CV-00009-RP, U.S. District Court Western District of Texas) - Breach of Contract, Breach of Non-Compete Agreement, seeking damages for unpaid royalties and unreported financials; (2) PENDING/RESOLVED - Highland Homes-Austin, LLC v. Luis Demetrio Urista and ATX WIR, LLC (Cause No. D-1-GN-23-008524, Travis County) - Commission dispute and Tortious Interference, dismissed with prejudice on July 17, 2024; (3) SETTLED - Marcianne Glennon v. Shirley Shaw, Chris Watters, WIR LLC, Kirk Edward Lewis (Cause No. D-1-GN-15-003842, Travis County) - Fraud and DTPA claims, settled August 30, 2016 for $75,000, no admission of liability; (4) SETTLED - Amanda Mayorga-Monsisvais and Michael Benavidez v. multiple parties including Chris Watters d/b/a WIR (Cause No. D-1-GN-21006159, Travis County) - Property subdivision compliance and fraud claims, settled May 8, 2023 for $35,000 to plaintiffs and $5,000 to sellers, no admission of liability.
Disclosure signals that moved the score
How this shows up in the verdict
- 6 litigation matters against a small 9-unit system (high count relative to size)
- 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?