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FDD Items 3 & 4 · 2026 filing

Wetzel’s Pretzels litigation history

What Wetzel’s Pretzels disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
18
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
2026
Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

13 distinct cases disclosed under Item 3, largely historical litigation/arbitration involving MTY/Kahala affiliate brands (Extreme Pita, Kahala Franchising, sweetFrog, Famous Dave's, Village Inn/RAI, Papa Murphy's) and Wetzel's Pretzels itself (Pretzelsdallas1, Inc. v. Wetzel's Pretzels, LLC, AAA Case No. 01-19-0002-9326, settled 2021), plus 2 concluded state administrative actions (Maryland, Virginia) and 3 pending Kahala Franchising lawsuits against franchisees filed in FY2025.

Item 3 (litigation) · 18 matters disclosed

Litigation cases

The franchisor and its predecessor

Concluded (2)

  • Pretzelsdallas1, Inc. v. Wetzel’s Pretzels, LLC

    concluded

    Brought by a franchisee · filed 2019-09-11 · American Arbitration Association, Los Angeles, California · 01-19-0002-9326

    “… Los Angeles, California; AAA Case No.01-19-0002-9326. On or about July 19, 2017, we entered into a franchise agreement with”Page 26 of the 2026 FDD, Item 3

    Outcome: “On September 24, 2021, the parties entered into a settlement agreement, in which a mutual release of all claims was agreed to, and Respondent/Counter Claimant paid”

  • New York Department of Law claim against Blimpie Associates, Ltd. and Joseph Dornbush

    concluded

    Blimpie Associates, Ltd. and Joseph Dornbush · New York Department of Law

    “In May 1992, Blimpie Associates, Ltd. (“Blimpie”) and Joseph Dornbush (formerly the President of Blimpie) (collectively “Respondents”) responded to a claim by the New York”Page 28 of the 2026 FDD, Item 3

    Outcome: “Respondents paid the $18,000 in May 1992 and executed the consent judgment on August 25, 1992. Concluded State Administrative Actions Involving Maui Wowi Franchising, Inc.,”

Parent, affiliates, master franchisor and subfranchisor

Concluded (12)

  • Desert Ribs, L.L.C., Famous Gracie, L.L.C., Famous Freddie, L.L.C., Famous George, L.L.C. and Famous Charlie, L.L.C. v. Famous Dave’s of America, Inc.

    concluded

    Brought by a franchisee · Famous Dave’s of America, Inc. · filed 2016-03-14 · American Arbitration Association, Minneapolis, Minnesota · 01 16 0000 8549

    “… American Arbitration”Page 24 of the 2026 FDD, Item 3

    Outcome: “Claimants voluntarily dismissed their remaining claims against Famous Dave’s and entered into a confidential settlement agreement and mutual release (the “Settlement”

  • SFF, L.L.C. v. Carmel Village Yogurt Company L.L.C.

    concluded

    Brought by the franchisor · SFF, L.L.C., successor in interest to SweetFrog Enterprises, L.L.C. · filed 2016-08-29 · City of Richmond, Virginia Circuit Court · CL16-3927

    “… City of Richmond, Virginia Circuit Court; Case No. CL16-3927. On August 29, 2016, SFF, L.L.C. (“Plaintiff”) filed a lawsuit”Page 23 of the 2026 FDD, Item 3

    Outcome: “The case was dismissed with prejudice on December 15, 2016. Concluded Arbitration and Litigation Involving Famous Dave’s of America, Inc. Desert Ribs, L.L.C., Famous Gracie,” (page 24)

  • Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, LLC; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD , Inc. SR Long Beach FD, Inc.; SR Palmdale FD, Inc.; SR Restaurant Holdings Group, Inc.; SR Simi Valley FD, Inc.; SR Tracey FD, Inc.;

    concluded

    Brought by the franchisor · Famous Dave’s of America, Inc. · filed 2015-07-24 · Superior Court of the State of California, County of Los Angeles, Central Division · BC589329

    “Famous Dave’s of America, Inc. v. Allan Gantes; John Gantes; M Mart 1, LLC; Kurt Schneiter; Shoreline FD Investors, L.L.C.; SR El Centro FD , Inc. SR Long Beach FD, Inc.; SR”Page 24 of the 2026 FDD, Item 3

    Outcome: “The Request for Dismissal with prejudice was entered on November 26, 2018. Concluded Arbitration and Litigation Involving VI BrandCo, L.L.C. In re: Restaurants Acquisition I,” (page 25)

  • KOHO, Inc. v. Kahala Franchising, L.L.C.

    concluded

    Kahala Franchising, L.L.C. · filed 2015-02-17 · Superior Court of the State of California for the County of Los Angeles · BC572565

    “… Superior Court of the State of California for the County of Los Angeles; Case No.: BC572565. On or about February 17, 2015, Koho, Inc.”Page 22 of the 2026 FDD, Item 3

    Outcome: “On June 19, 2017, the parties entered into a settlement agreement whereby Kahala repurchased Koho’s Area Developer territory for the sum of $75,000 and forgave the remaining” (page 23)

  • Purav Enterprises, L.L.C., Balwant Bahia, and Paramjit Samra v. The Extreme Pita Franchising USA, Inc., EP Development, Inc., and Feisal Ramjee

    concluded

    Brought by a franchisee · The Extreme Pita Franchising USA, Inc., predecessor in interest to MTY Franchising USA, Inc. · filed 2015-06-22 · Superior Court of the State of Washington for King County · 15-2-15120-7

    “… Superior Court of the State of”Page 22 of the 2026 FDD, Item 3

    Outcome: “The parties entered into a settlement agreement on March 11, 2016, in which Defendants paid Plaintiffs the sum of $20,000. The matter was dismissed on March 16, 2016. Concluded”

  • Rob & Bud’s Pizza, LLC v. Papa Murphy’s International, Inc. and Papa Murphy’s International, LLC

    concluded

    Brought by a franchisee · Papa Murphy’s International LLC · filed 2015-04-17 · United States District Court for the Western District of Washington · 5:15-cv-05090-TLB

    “… United States District Court for the Western District of Washington, Case No.”Page 27 of the 2026 FDD, Item 3

    Outcome: “The case was dismissed with prejudice as part of a settlement with plaintiff in this case and the LMP case under which Papa Murphy’s purchased plaintiff’s nine Papa Murphy’s”

  • DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud’s Pizza, Robert J. Dickerson Trust UA, Rob Dickerson, 4LM Enterprises, Inc., Jana and Randell Liles, Ben and Kim Mayfield, SEAMS

    concluded

    Papa Murphy’s International LLC · filed 2014-04-01 · Washington Superior Court, Clark County · 14-2-00904-0 (consolidated with 14-2-01743-3)

    “DTD Pizza LLC, Brian Watson, Alton Spears, LMP Enterprises LLC, Pizza Enterprises LLC, Alan and Denise Barnett, DOB Enterprises, Inc., Douglas and Lesia Billing, Rob & Bud's”Page 26 of the 2026 FDD, Item 3

    Outcome: “Each of the plaintiff groups entered into settlements with Papa Murphy’s in which they dismissed all of their claims against defendants with prejudice and the action was” (page 27)

  • In the Matter of Maui Wowi Franchising, Inc. (2005)

    concluded

    Government or regulatory action · Maui Wowi Franchising, Inc., predecessor in interest to Kahala Franchising, L.L.C. · Before the Securities Commissioner of Maryland · 2005-0651

    “In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2005-0651. On November 11, 2005, Maui Wowi Franchising, Inc., the”Page 28 of the 2026 FDD, Item 3

    Outcome: “At this time, MWF is in full compliance with the Consent Order. In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2007-0194.” (page 29)

  • In the Matter of Maui Wowi Franchising, Inc. (2007)

    concluded

    Government or regulatory action · Maui Wowi Franchising, Inc., predecessor in interest to Kahala Franchising, L.L.C. · Before the Securities Commissioner of Maryland · 2007-0194

    “In the Matter of Maui Wowi Franchising, Inc., Before the Securities Commissioner of Maryland, Case No. 2007-0194. On September 12, 2007, “MWF” entered into a Consent Order with”Page 29 of the 2026 FDD, Item 3

    Outcome: “MWF fully complied with the Amended Consent Order, and subsequently employed a compliance monitor and was granted registration in the State of Maryland. Concluded State”

  • In the Matter of SweetFrog Enterprises, L.L.C. f.k.a. Imagination Enterprises, Inc., d/b/a Sweet Frog

    concluded

    Government or regulatory action · SweetFrog Enterprises, L.L.C., predecessor of SFF, L.L.C. · Administrative Proceeding Before the Securities Commissioner of Maryland · 2012-0055

    “… Administrative Proceeding Before the Securities Commissioner of Maryland,”Page 28 of the 2026 FDD, Item 3

    Outcome: “On August 29, 2012, the Commissioner and SFE agreed to enter into a consent order whereby SFE, without admitting or denying any violations of the law, agreed to: (i) immediately”

  • State of Maryland Determination (Triune, LLC)

    concluded

    Government or regulatory action · Triune, LLC, a predecessor of BF Acquisition Holdings, L.L.C. · Office of the Attorney General of Maryland · 2012-0073

    “State of Maryland Determination; Case Number 2012-0073. In February 2012, the State of Maryland alleged that during the period January 1, 2009 to November 26, 2009, Triune, LLC”Page 29 of the 2026 FDD, Item 3

    Outcome: “in September 2012, Triune voluntarily entered into a Consent Order with the Office of the Attorney General of Maryland and agreed to: (i) not violate the Maryland Law in the” (page 30)

  • State of Virginia Determination (Triune, LLC)

    concluded

    Triune, LLC, a predecessor of BF Acquisition Holdings, L.L.C. · Division of Securities and Retail Franchising of the State Corporation Commission · SEC-2012-00027

    “State of Virginia Determination; Case Number SEC-2012-00027. In February 2012, the Division of Securities and Retail Franchising of the State Corporation Commission (the”Page 30 of the 2026 FDD, Item 3

    Outcome: “on November 26, 2012, Triune voluntarily entered into a Settlement Order with the Commission and agreed: (i) to not violate the Virginia Act in the future; (ii) to pay Virginia”

Officers and directors (individuals, not the company)

Concluded (1)

  • In re: Restaurants Acquisition I, LLC (Giuliano vs. W. Craig Barber et. al.

    concluded

    Brought by a third party · W. Craig Barber and Robert Langford · filed 2017-12-01 · United States Bankruptcy Court for the District of Delaware · 15-12406 (KG)

    “… United States Bankruptcy Court for the District of Delaware on December 2, 2015 (Case No. 15-12406”Page 25 of the 2026 FDD, Item 3

    Outcome: “and estate separate payments totaling $150,000 each over a three-year period. Concluded Arbitration and Litigation Involving Wetzel’s Pretzels, L.L.C. Pretzelsdallas1, Inc. v.” (page 26)

This list shows 15 of the 18 matters Item 3 discloses; the rest are in the filing.

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.

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?