FDD Items 3 & 4 · 2026 filing
AmericInn litigation history
What AmericInn 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
- 8
- Item 3, as counted in the filing
- Largest disclosed settlement
- $220K
- As stated in Item 3
- 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
No pending litigation against the franchisor itself. Multiple pending class-action/antitrust suits against parent Wyndham Hotels & Resorts and affiliates (IDeaS/SAS revenue-management price-fixing MDL, Canadian destination-marketing-fee class actions, LuxUrban breach of contract). Several resolved historical cases against Wyndham entities (resort fee TCCWNA class action, FTC data-security action, telephone recording class action, antitrust settlement). Franchisor has filed 4 suits against current/former AmericInn franchisees for breach/non-payment in the past year.
Disclosure signals that moved the score
How this shows up in the verdict
- Going Concern status is FALSE — franchisor's financial viability is questioned
- Extensive litigation portfolio including price-fixing, antitrust, fraud, and state franchise act violations creates legal and reputational risk
- High litigation exposure against franchisees for outstanding sums suggests collection problems and franchisor-franchisee relationship deterioration
- Multiple consumer fraud allegations (resort fees, call recording) expose franchisees to regulatory scrutiny and brand reputation damage
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?