FDD Items 3 & 4 · 2026 filing
Wonderly Lights litigation history
What Wonderly Lights 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 0
- Item 3, as counted in the filing
- Largest disclosed settlement
- N/A
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
No litigation required to be disclosed in Item 3.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Dave Warn (VP of Franchise Development) and Karen Denise Warn jointly filed Chapter 13 bankruptcy petition on April 24, 2014; plan confirmed August 20, 2014; discharge entered January 27, 2020 (U.S. Bankruptcy Court, Eastern District of California, Sacramento Division, Case No. 14-24219).
Disclosure signals that moved the score
How this shows up in the verdict
- Old officer personal bankruptcy (2014, discharged 2020) - low weight
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?