FDD Items 3 & 4 · 2026 filing
avid hotels litigation history
What avid hotels 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 46
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $10.9M
- 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
Holiday is defendant in class action suits (5 consolidated) and multiple individual licensee suits involving breach of contract, wrongful termination, and kickback allegations. Holiday is plaintiff in suits seeking liquidated damages from licensees who failed to pay fees or complete construction.
Item 3 (litigation) · 46 matters disclosed · 9 pending listed
Litigation cases
The franchisor
Pending (8)
WGI Palm Springs LLC, Amarjit Shokeen, and Ramesh K. Shokeen v. Holiday Hospitality Franchising, LLC, Six Continents Hotels, Inc., and Does 1 through 25
pendingBrought by a franchisee · filed 2026 · Central District of California (removed from Superior Court of the State of California, County of Riverside, Case No. CVRI2507185, filed Dec. 18, 2025) · Case No. 5:26-cv-01038
“alleging that a former Holiday salesperson made representations to them regarding the hotel’s performance and projections that were not contained in the Franchise Disclosure Document and made certain misrepresentations regarding the hotel’s property improvement plan, ramp up, and financial incentives.”Page 14 of the 2026 FDD, Item 3
Outcome: “Holiday removed the case to federal court on March 5, 2026.”
BMK Realty LLC and Majid Koza v. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2025 · Eastern District of Michigan (removed from State of Michigan, Oakland County Circuit Court, Case No. 2025-219022, filed November 18, 2025) · Case No. 2:25-cv-13975
“The Michigan Action alleges that Holiday induced plaintiff Majid Koza to sign the license agreement and guaranty as a placeholder/nominal party until he could create a separate legal entity, BMK Realty LLC. The Michigan Action asserts breach of contract and fraudulent inducement claims.”Page 15 of the 2026 FDD, Item 3
Outcome: “On December 10, 2025, Holiday removed the Michigan Action to federal court and filed a motion to transfer, stay, or dismiss the Michigan Action, which is pending before the court.”
Holiday Hospitality Franchising LLC v. Aspen Grand Hotels LLC, Sikandar Malik, and Sara Malik
pendingBrought against a franchisee · filed 2025 · Northern District of Georgia · Case No. 1:25-cv-5379
“On September 19, 2025, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Holiday Inn Express & Suites license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 14 of the 2026 FDD, Item 3
Outcome: “Holiday believes the counterclaims to be meritless and is defending vigorously.”
Laurel Investment, LLC, Majid Koza, Kenny Koza, Lyon Koza, Carlo Koza and Derek Koza vs. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2025 · Eastern District of Michigan (removed from State of Michigan, Oakland County Circuit Court, Case No. 2025-212490-CZ, filed January 31, 2025) · Case No. 2:25-cv-10656
“alleging that Holiday’s marketing fails to differentiate between the Holiday Inn and Holiday Inn Express brands and services, that Holiday added three Holiday Inn Express branded hotels in the same market as plaintiffs’ hotel, and that Holiday’s obligations under the license agreement are illusory.”Page 15 of the 2026 FDD, Item 3
Outcome: “Plaintiffs appealed the court’s decision on January 26, 2026.”
Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2023-10-31 · Georgia Court of Appeals · Appeal No. A26A0270
“The amended petition alleges that Holiday made certain misrepresentations to plaintiffs in advance of the execution of the license agreement but asserted no claim for damages. The amended petition seeks a declaratory judgment finding that Holiday’s license agreement is unconscionable and unenforceable, that the liquidated damages clause is an unenforceable penalty, and that the defendants are not”Page 16 of the 2026 FDD, Item 3
Outcome: “Plaintiffs appealed the Court’s ruling on July 28. 2025, which is now fully briefed.”
TJM Columbus, LLC d/b/a Crowne Plaza-Columbus North and TJM Syracuse, LLC d/b/a Crowne Plaza Syracuse v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group
pendingBrought by a franchisee · filed 2022-05-23 · Georgia Court of Appeals · Appeal No. A26A0466
“Plaintiffs were Crowne Plaza licensees (for the Crowne Plaza Columbus North – Worthington and the Crowne Plaza Syracuse, respectively). Plaintiffs assert a breach of contract claim against Holiday and SCH related to a proposed sale of the subject hotels to a developer that intended to convert the subject hotels out of the Crowne Plaza system.”Page 17 of the 2026 FDD, Item 3
Outcome: “The plaintiffs appealed the Court’s decision on August 26, 2025, which is now fully briefed.”
Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2021-02-18 · United States District Court, New Jersey · Case No. 2:21-cv-02276-MCA-MAH
“Scion Hotels LLC (“Scion”), a New Jersey licensee of a Holiday Inn hotel, filed a civil complaint against Holiday to obtain damages for violation of the New Jersey Franchise Practices Act in allegedly wrongfully imposing unreasonable standards of performance upon Scion and then wrongfully refusing to renew its license agreement.”Page 16 of the 2026 FDD, Item 3
Outcome: “The case is now proceeding in the trial court.”
Holiday Hospitality Franchising, LLC v. Niranjan Khatiwala, Nimesh D. Vesuwala and Mayur N. Khatiwala
pendingBrought against a franchisee · filed 2020-12-11 · State Court of Dekalb County, Georgia (transferred to Superior Court of DeKalb County, Civil Action No. 22CV4560) · Civil Action File No. 20A83898
“On December 11, 2020, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Crowne Plaza license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 17 of the 2026 FDD, Item 3
Outcome: “The case is currently pending in the Superior Court of DeKalb County, Georgia under Civil Action No. 22CV4560.” (page 18)
Concluded (5)
Park 80 Hotels, LLC, PL Hotels, LLC, PH Lodging Tomball, LLC, 110 Sunport, LLC, and Synergy Hotels, LLC, individually and on behalf of all other similarly situated, v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group
settledBrought by a franchisee · filed 2025 · 11th Cir. (appeal from N.D. Ga. consolidated Civil Action No. 1:21-cv-04650-ELR) · Case No. 25-10068
“Each of the lawsuits allege that Holiday and SCH engaged in unlawful and otherwise improper franchise business practices, including, imposing unreasonable products, services and requirements and receiving improper kickbacks from required purchases.”Page 26 of the 2026 FDD, Item 3
Outcome: “Plaintiffs then moved to voluntarily dismiss the appeal on May 16, 2025, after the parties settled the case with no money paid by Holiday or SCH.” (page 27)
Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a Intercontinental Hotel Group
dismissedBrought by a franchisee · filed 2024-08-07 · Northern District of Georgia (refiled after the Lucas County, Ohio action) · Case No. 1:24-cv-03498-LMM
“Plaintiffs claim that, in connection with the sale process related to the Hotel, they were misled into believing the scope of work required by the change of ownership license agreement for the hotel would be lighter in scope and less expensive than what it turned out to be.”Page 25 of the 2026 FDD, Item 3
Outcome: “The court granted the motion to dismiss on March 20, 2025 and dismissed the case in its entirety.” (page 26)
Coquihalla Motor Inn Ltd. v. Holiday Hospitality Franchising, LLC
settledBrought by a franchisee · filed 2024-08-22 · Supreme Court of British Columbia · Court File No. VER-S-S-58661
“… Supreme Court of British Columbia, Court File No. VER-S-S-58661 (August 22, 2024). Defendant (a Holiday licensee) filed a Notice of Civil Claim seeking a declaration that no binding license agreement exists and costs.”Page 18 of the 2026 FDD, Item 3
Outcome: “The parties resolved the matter a confidential settlement. The parties filed a consent order of dismissal on October 31, 2024.”
Park 80 Hotels, LLC, PL Hotels, LLC, Mayur Patel, JSK Exton LLC, Jay Z. Kuber Hospitality, Inc., Parmattma Corporation and Synergy Hotels, LLC, individually and on behalf of all others similarly situated v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental H
dismissedBrought by a franchisee · filed 2022 · N.D.Ga. · Case 1:22-cv-03709-LMM
“The putative class action lawsuit brought on behalf of putative classes of Holiday licensees related to an unauthorized access to certain of IHG’s systems by third party bad actors that resulted in a temporary disruption of certain services which plaintiffs alleged had a negative impact on their businesses.”Page 19 of the 2026 FDD, Item 3
Outcome: “The Court granted the motion on July 31, 2024, dismissing the second amended complaint with prejudice and directing the clerk to close the case.”
Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.
settledBrought by a franchisee · filed 2012 · United States District Court, District of Kansas, Kansas City Division, KS · Case No. 12CV2775; Case No. 15-9196
“A lawsuit was filed by a Crowne Plaza licensee in Lenexa, Kansas, initially on December 10, 2012, and later amended on January 17, 2013, alleging breach of contract, breach of the covenant of good faith and fair dealing and seeking declaratory relief as result of Holiday’s alleged failure to meet its contractual obligations concerning the reservation system.”Page 23 of the 2026 FDD, Item 3
Outcome: “Following a mediation, the parties resolved this matter with no admission of liability by either party and Holiday making a payment to Plaintiff of $10.9M.”
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.
pendingBrought by a franchisee · Six Continents Hotels, Inc. · filed 2006-07-05 · 3rd Civil Court of Manaus, Brazil · Case No. 0022145-55.2006.8.04.0001
“… 3rd Civil Court of Manaus, Brazil, Case No. 0022145- 55.2006.8.04.0001 (July 5, 2006). The former licensee of the Holiday Inn hotel in Manaus, Brazil filed a lawsuit seeking damages for alleged wrongful termination of the license agreement. The license agreement was terminated due to non- compliance with brand standards in 2002.”Page 16 of the 2026 FDD, Item 3
Outcome: “SCH intends to defend against this claim vigorously.”
Concluded (1)
Hospitality Marketing Concepts, Inc. v. Six Continents Hotels, Inc. & InterContinental Hotels Group, PLC
settledSix Continents Hotels, Inc.; InterContinental Hotels Group, PLC · filed 2015-11-02 · United States District Court, Central District of California, Southern Division · Civil Action No. 8:15-cv-01791
“On June 12, 2015, Hospitality Marketing Concepts, Inc. (“HMC”) filed suit against “InterContinental Hotels Group” in California Superior Court. Following an amended complaint and voluntary dismissal, HMC filed a new action in California federal court on November 2, 2015 against Six Continents Hotels, Inc. and InterContinental Hotels Group, PLC alleging breach of oral contracts, fraud, fraudulent”Page 24 of the 2026 FDD, Item 3
Outcome: “Following a partially successfully motion for summary judgment by SCH, the parties resolved this matter with SCH making a payment of $699,000 to HMC.” (page 25)
This list shows 15 of the 46 matters Item 3 discloses; the rest are in the filing.
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
- Extensive litigation history including class actions, fee disputes, and data security breaches suggests systemic operational/compliance issues
- 20-year term is exceptionally long given litigation exposure and lack of financial transparency
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?