FDD Items 3 & 4 · 2025 filing
Yi Fang Taiwan Fruit Tea litigation history
What Yi Fang Taiwan Fruit Tea 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
- 4
- Item 3, as counted in the filing
- Largest disclosed settlement
- $7K
- 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 government enforcement actions disclosed: (1) California Notice of Violation filed September 3, 2019 by Department of Financial Protection and Innovation regarding unregistered franchise offering (approved October 2, 2019); (2) New York Attorney General Assurance of Discontinuance (AOD No. 19-004) signed January 29, 2019 by parent company Inkism International Co. Ltd. for selling two unregistered franchises (unit registration approved February 8, 2019, renewed February 6, 2020); (3) California Notice of Violation filed October 11, 2019 by subfranchisor Fortune Journey LLC and Roy Lam for unregistered franchise sales (approved February 5, 2020); (4) Washington State Securities Division Consent Order (Order No. S-21-3087-21-CO03) entered July 13, 2022 against Inkism International Co., LLC for misrepresentation/non-disclosure of store numbers in franchise disclosure document, with $7,200 investigative costs ordered. All matters settled/concluded.
Disclosure signals that moved the score
How this shows up in the verdict
- 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?