FDD Items 3 & 4 · 2026 filing

Best Western litigation history

What Best Western 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: 25; 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: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Most cases involve franchisor suing former members for unpaid fees and dues following termination or self-termination, with counterclaims by former members for wrongful termination. Several regulatory actions by state securities/franchise regulators alleging membership agreements constitute franchises requiring registration. 8 new actions filed in 2025 fiscal year for unpaid fees and/or trademark infringement.

Item 3 (litigation) · 25 matters disclosed

Litigation cases

The franchisor

Concluded (15)

Best Western International, Inc. v. 1025 Beach LLC, Joga Sing Hayre, et al.
concluded
Brought by the franchisor · filed 2022-10-05 · Arizona District Court · 2:22-cv-01696-CDB
“… Arizona District Court Case No. 2:22-cv-01696-CDB (Filed October 5, 2022; Counterclaim filed”Page 15 of the 2026 FDD, Item 3
Outcome: “On April 19, 2023, the parties settled the case with mutual releases of all claims pe”
Best Western International, Inc. v. 1Nonly Phi Mar, LLC, Philip Levine, et al.
concluded
Brought by the franchisor · filed 2022-03-21 · Arizona District Court · 2:22-cv-00440-MTL
“… Arizona District Court Case No. 2:22-cv-00440-MTL (Filed March 21, 2022; Counterclaim file”Page 15 of the 2026 FDD, Item 3
Outcome: “On January 12, 2023, the parties settled the case with mutual releases of all claims” (page 16)
Best Western International, Inc. v. Brookfield Ventures, LLC, et al.
concluded
Brought by the franchisor · filed 2022-01-10 · Arizona District Court · 2:22-cv-00037-JAT
“… Arizona District Court Case No. 2:22-cv-00037-JAT (Filed January 10, 2022; Counterclaim filed August”Page 15 of the 2026 FDD, Item 3
Outcome: “On December 1, 2023, the parties settled the case with mutual releases of all claims”
Best Western International, Inc. v. 764 4th Avenue Associates, LLC
concluded
Brought by the franchisor · filed 2020-09-08 · Arizona District Court · 2:20-cv-01760
“… Arizona District Court Case No. 2:20-cv-01760 (Filed September 8, 2020; Counterclaim filed January 29,”Page 16 of the 2026 FDD, Item 3
Outcome: “On April 30, 2021, the parties settled the case with mutual releases of all claims pe”
In the Matter of Best Western International, Inc. (Securities Division of Department of Financial Institutions of Washington)
concluded
Government or regulatory action · filed 2019-02-07 · Securities Division of Department of Financial Institutions of Washington · S-18-2510-19-CO01
“In the Matter of Best Western International, Inc. Securities Division of Department of Financial Institutions of Washington, Order No. S-18-2510-19-CO01 (Effective February 7, 2019”Page 20 of the 2026 FDD, Item 3
Outcome: “we voluntarily entered into a Consent Order with Washington Chief of Enforcement, dated”
Best Western International, Inc. v. Twin City Lodging, LLC, et al.
concluded
Brought by the franchisor · filed 2018-10-19 · Arizona District Court · 18-cv-03374-SPL
“… Arizona District Court Case No. 18-cv-03374-SPL (Filed October 19, 2018). The former Best Western Hote”Page 16 of the 2026 FDD, Item 3
Outcome: “On April 25, 2020, the parties settled the case with mutual releases of all claims pe”
In the Matter of Best Western International, Inc. (Securities Division of the Office of the Attorney General of Maryland)
concluded
Government or regulatory action · filed 2018-08-24 · Securities Division of the Office of the Attorney General of Maryland · 2018-0237
“In the Matter of Best Western International, Inc. Securities Division of the Office of the Attorney General of Maryland, Case No. 2018-0237 (Effective August 24, 2018). The Securit”Page 19 of the 2026 FDD, Item 3
Outcome: “we voluntarily entered into a Consent Order with the Maryland Securities Commissioner (the”
Best Western International, Inc. v. American Hospitality Solution, LLC and Deborah Speziale
concluded
Brought by the franchisor · filed 2016-10-06 · Arizona District Court · 2:16-cv-03405
“… Arizona District Court Case No. 2:16-cv-03405 (Filed October 6, 2016). The former Best”Page 18 of the 2026 FDD, Item 3
Outcome: “On April 24, 2017, the parties settled the case with mutual releases of all claims pe”
Best Western International, Inc. v. Oakland Park, Inc., et al.
concluded
Brought by the franchisor · filed 2016-12-12 · Arizona State Court (Maricopa County) · CV 2015-000279
“… Arizona State Court (Maricopa County) Case No. CV 2015-000279 (Filed December 12, 2016, Appellate Ruling D”Page 16 of the 2026 FDD, Item 3
Outcome: “On July 6, 2020, the parties, with the consent of the bankruptcy trustee and bankruptcy court, settled the cas” (page 17)
Best Western International, Inc. v. Upstate Host, LLC and Tarrunumn Murad
concluded
Brought by the franchisor · filed 2016-03-31 · Arizona District Court · 2:16-cv-00885 (PGR)
“… Arizona District Court Case No. 2:16-cv-00885 (PGR) (Filed March 31, 2016). The former Best Wes”Page 18 of the 2026 FDD, Item 3
Outcome: “On July 13, 2016, the parties settled the case with mutual releases of all claims per”
Bright LLC v. Best Western International, Inc.
concluded
filed 2016-07-08 · Arizona District Court · 17-cv-00463-PHX-ROS
“… Arizona District Court Case No. 17-cv-00463- PHX-ROS (Filed July 8, 2016). Bright LLC, a former condit”Page 17 of the 2026 FDD, Item 3
Outcome: “On March 1, 2019, the court granted summary judgment in our favor and”
Best Western International, Inc. v. SDV Hospitality and Resources Corporation and Deepak Kant Vyas
concluded
Brought by the franchisor · filed 2015-10-27 · Arizona District Court · 2:15-cv-02159
“… Arizona District Court Case No. 2:15-cv-02159 (Filed October 27, 2015). The form”Page 17 of the 2026 FDD, Item 3
Outcome: “On July 26, 2017, the parties settled the case with mutual releases of all claims per” (page 18)
State Bank of Texas, SBT I-10 Service Rd., Ft. Worth Hotel South, LLC v. Best Western International, Inc.
concluded
Government or regulatory action · filed 2015-11-20 · Arizona State Court (Maricopa County) · CV 2015-008670
“… Arizona State Court (Maricopa County) Case No. CV 2015-008670 (Filed November 20, 2”Page 17 of the 2026 FDD, Item 3
Outcome: “On September 25, 2018, the parties settled the case with mutual releases of all claims p”
Commissioner of Corporations v. Best Western International, Inc.
concluded
Government or regulatory action · filed 1988-07-29 · Superior Court of the State of California for the County of Los Angeles · 0693928
“… Superior Court of the State of California for the County of Los Angeles, Case No. 0693928 (Filed July 29”Page 19 of the 2026 FDD, Item 3
Outcome: “we consented to the entry of a Final Judgment of Permanent Injunction which”
Quist v. Best Western International, Inc.
concluded
filed 1984-07-18 · Supreme Court of North Dakota · Civ. Case No. 10571
“… Supreme Court of North Dakota, Civ. Case No. 10571 (Filed July 18, 1984). On March 3, 1983, the North Dakot”Page 19 of the 2026 FDD, Item 3
Outcome: “On July 19, 1984, the Supreme Court affirmed the District Court’s decision,”

This list shows 15 of the 25 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

Multiple active litigation cases across 4+ states challenging franchise classification and membership structure suggests regulatory and structural vulnerability

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?

Back to the Best Western verdict Risk analysis on the brand page Franchisee contacts for due-diligence calls