DonutNV Franchisees Cry Fraud, File Demand for Arbitration

Part Three in a Series.  The DonutNV franchise cautionary tale has officially entered mini-donut meltdown stage.  After franchisor DonutNV Franchising Inc. was a no-show to mutually scheduled mediation (Part One), a coalition of 20+ DonutNV franchisees filed a Demand for Arbitration to the franchisor and their counsel, Jaryeneh Travis Tarpeh of Gross Law Group P.A. of Panama City, FL.  Gross Law Group is headed by Keith Gross (aka Keithly Gross), a candidate running for the open Congressional seat in Florida’s Second District (FL-02).  Gross is also the husband of Scott Marr, owner of Franchise Altitude and advisor to DonutNV franchising Inc. by Sean Kelly, Founder, Truth for Veterans, Truth for All Initiative

(UnhappyFranchisee.Com)  Part Three of the DonutNV Franchise Meltdown Series

On May 18, 2026, Attorney Andrew P. Bleiman, of Marks & Klein, LLC filed a Demand for Arbitration with the AAA AMERICAN ARBITRATION ASSOCIATION on behalf of 20+ DonutNV franchisees.

The franchisee demand cites claims of fraud, misrepresentation, breach of contract, breach of the covenant of good faith and fair dealing and violations of state and federal consumer fraud acts.  It seeks to recover more than $1M in damages and fees.

Demand Served to Jaryeneh Travis Tarpeh (Gross Law Group) After Mediation No-Show

The Demand was served to respondents DonutNV Franchising, Inc., Alex Gingold, Amanda Gingold and their counsel Jaryeneh Travis Tarpeh, Gross Law Group, P.A., Panama City Beach, FL.

Gross Law Group PLC of Panama City Beach FL is the law firm founded and headed by Veteran and Congressional candidate Keith Gross, who is running as an “America First” conservative Republican candidate in Florida’s Second District (FL-02).

The demand for arbitration filing  followed an unsuccessful attempt by the franchisee coalition to resolve their dispute with the franchisor by mediation.  Mediation had been mutually scheduled for Thursday, May 14 but was delayed, then cancelled, by the franchisor that day.

According to the demand document (obtained through public records in related lawsuits filed by Gross Law Group), the dollar amount sought in arbitration is $9,999,999.99, plus Attorneys’ Fees, Interest , Arbitration Costs, Punitive/Exemplary and other Statutory Damages.

The DonutNV franchisee demand seeks more than $1,000,000 in damages, interest, costs, punitive and other damages.

DonutNV Franchisees Claim Fraud, Misrepresentation & Unjust Enrichment

The Demand for Arbitration states that franchisee claims involve:

• fraud;
• misrepresentation;
• breach of contract;
• breach of the covenant of good faith and fair dealing;
• violations of state and federal consumer fraud acts,
• Little-FTC Acts, and state law including, but not limited to,
• the Florida Deceptive and Unfair Trade Practices Act,
• the Florida Sale of Business Opportunities Act,
• the Texas Deceptive Trade Practices-Consumer Protection Act,
• the Missouri Merchandising Practices Act,
• the Indiana Deceptive Consumer Sales Act,
• the Indiana Franchise Act,
• the Pennsylvania Unfair Trade Practices and Consumer Protection Law,
• the Tennessee Consumer Protection Act, and
• the Colorado Consumer Protection Act;
• violations of constitutional rights of association;
• conversion;
• common law conspiracy,
• negligent misrepresentation;
• unjust enrichment; and
• wrongful termination.

The demand states that “A detailed statement of claims will be filed in connection with the arbitration action.”

DonutNV Franchisee Coalition Members Include Several Military Veterans

The Arbitration Demand was entered into the public record as an exhibit in a dozen or so lawsuits subsequently filed against coalition franchisees by Gross Law’s Travis Tarpeh on behalf of DonutNV Franchising, Inc.

Several of the listed claimants (Matt Furman, Pamela Hunter, Nicholas Fleming) are known to be military Veterans,* while others are members of military families (Estela Crawford).

The DonutNV Franchisees’ Demand for Arbitration includes the corporate names of 22 franchisees.  I have included franchisee names as listed in the 2025 Amended FDD.

From the May 18, 2026
Name of Claimants:
1) Crawford Sales & Marketing, LLC  (James Crawford, Estela Crawford, Midlothian, TX)*
2) LBC Donuts, LLC  (Dan Cook, Cindy Cook, Neosho, MO) (Terminated)*
3) JCDONUTS LLC (Jason Puetz, Christine Puetz, Noblesville, IN)
4) Farrell Five Corporation (Katie Pursel, Jason Farrell, Nazareth)
5) Garza Donuts LLC  (Christian Garza, Juanita Yazmin Garza, Grand Prairie, TX)*
6) Austenite 1250, LLC (Mike Sadler, Houston, TX)*
7) Envy of Cookeville LLC (Chad Day, Bonny Day, Cookeville, TN)
8) Eleven Nine LLC (Eric Hanson, Angela Hanson, Spring, TX)*
9) Purple Circles Inc.  (Matt Furman, Pamela Hunter, Colorado Springs, CO)(Terminated)*
10) RSP Ventures Inc (Rebecca Pyles, Madison, IN)*
11) Concessions By J & K, LLC (John McNeal, Kimberly McNeal, Archer, FL) (Terminated)*
12) SweetDough LLC (Rosaly-Rosario Lasalle, William Lasalle, Kingwood, TX)
13) Karly Thompson Ventures LLC (Karly Thompson, Mac Thompson, The Colony, TX)*
14) Sweet Circles LLC (Steven Ray, Duana Ray, Culleoka, TN)
15) TXSC Holdings, LLC  (Nick Rogers, Jenni Rogers Ponder, TX)
16) Gallardoing Corp. (Pedro Gallardo, Mabel Gallardo, Round Rock, TX)
17) Thompson Donuts, Inc.  (Michaela Thompson, Zachary Thompson, Newman Grove, NE)
18) 1 Finger Short Homes Services Inc. (Billy Lee, Karen Lee, Pflugerville, TX)
19) Dropping Donuts, LLC (Tanya R. Hughey, Matt Hughey, Buda, TX)* (Terminated)*
20) Lookout Mountain Enterprise, LLC (Kayla Alford, Doies Lee Alford II, Gadsden, AL)*
21) DAM Brothers LLC  (Nicholas Fleming, Liz Fleming, Dickinson, TX)*
22) Kennaisley LLC  (Brian DeMoss, Michele DeMoss, Peculiar, MO)

The list of franchisee complainants has reportedly grown since this list was made public. If you’re aware of other changes that may have occurred, please leave a comment below.

The DonutNV Demand for Arbitration document, lawsuit filings, and Franchise Disclosure Documents (FDDs) are available for free download under the Documentation section of the DonutNV Franchise Report.

* At least eight military Veterans have already exited the system.  Several other Veterans are seeking to sell and exit their DonutNV franchise. 

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Tags:  The DonutNV Report, DonutNV, DonutNV franchise, DonutNV franchise opportunity, Donut franchise, Franchise Fastlane, Alex Gingold, Amanda Gingold,  Gross Law Group, Keith Gross, Keithly Gross, Travis Tarpeh, Jaryeneh Travis Tarpeh, Keith Gross for Congress, Scott Marr, Franchise Altitude, Andrew Bleiman, AAA, arbitration, Marks & Klein, Sean Kelly, Unhappy Franchisee, UnhappyFranchisee.Com, SLAPP, Veterans in Franchising