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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 4
- 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
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.
Item 3 (litigation) · 4 matters disclosed
Litigation cases
The franchisor
Concluded (2)
CONSENT ORDER (Order No. S-21-3087-21-CO03)
concludedGovernment or regulatory action · filed 2022-07-13 · Washington State Securities Division · S-21-3087-21-CO03
“… On July 13, 2022, the Securities Division of Washington State entered into a Consent Order with Inkism International Co., LLC d.b.a.”Page 12 of the 2025 FDD, Item 3
Matter with no printed caption
concludedGovernment or regulatory action · filed 2019-09-03 · California Department of Financial Protection and Innovation · org-296986; app- 15485
“The YI FANG TAIWAN FRUIT TEA franchise was offered in California without prior registration with the Department of Business Oversight, which was subsequently renamed the Department of Financial Protection and Innovation on September 29, 2020.”Page 11 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (2)
In the Matter of Investigation by Letitia James, Attorney General of New York, of Inkism Intl., Co., LTD, and Tzu Kai ko
concludedGovernment or regulatory action · Inkism International Co. Ltd. (the franchisor's parent company) and Tzu Kai ko · filed 2019-01-29 · Office of the Attorney General of the State of New York · AOD No. 19-004
“… (AOD No. 19-004) Inkism International Co. Ltd., the franchisor’s parent company, sold two franchises in New York without first registering a franchise offering prospectus with the Office of the Attorney General of the State of New York (“OAG”).”Page 11 of the 2025 FDD, Item 3
Matter with no printed caption
concludedGovernment or regulatory action · Fortune Journey LLC (subfranchisor, Northern California) and Roy Lam · filed 2019-10-11 · California Department of Business Oversight
“Fortune Journey LLC is the subfranchisor of Yi Fang Taiwan Fruit Tea in Northern California. Fortune Journey LLC and Roy Lam were involved in offering and selling of Yi Fang Taiwan Fruit Tea franchise to subfranchisees without first filing franchise registration in violation of Section 31110 and 31300 of the California Corporation Code.”Page 12 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 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?