FDD Items 3 & 4 · 2026 filing

Choice Hotels International In litigation history

What Choice Hotels International In 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: 141; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $85K; 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

Several pending matters including a Canadian class action re destination marketing fees ($403M demand), a multi-franchisee RICO/antitrust suit (stayed, compelled to arbitration), a data-misuse/breach of contract suit (dismissed, on appeal), a fraudulent-rebate-scheme arbitration, an Ontario consumer-fee class action, and an individual civil-rights suit; plus dozens of Choice-initiated collection arbitrations against franchisees for unpaid royalties/fees and IP enforcement actions post-termination; resolved matters include a $779K adverse judgment (Highmark) and a $603K fee award in Choice's favor (Dahya).

Item 3 (litigation) · 141 matters disclosed · 6 pending listed

Litigation cases

The franchisor

Pending (5)

Gurpreet Kaur v. Choice Hotels International, Inc., et al.
pending
Brought by a franchisee · filed 2026-01-09 · United States District Court for the Central District of California · 5:26-cv-00090
“… United States District Court for the Central District of California, Case No. 5:26-cv-00090 On January 9, 2026, Plaintiff Gurpreet Kaur, in her individual capacity, filed a lawsuit against Choice Hotels and the American Arbitration Association alleging each entity owes her damages due to alleged violations of her federal civil rights and”Page 22 of the 2026 FDD, Item 3
Proulx, et al. v. Orsini Bros. Inns, Inc., et al.
pending
filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00747070-00CP
“… Ontario Superior Court of Justice, Court File No. CV-25-00747070-00CP On July 8, 2025, a proposed class action lawsuit was filed in the Ontario Superior Court of Justice, against multiple hotel operators including Choice Hotels Canada Inc. and Choice Hotels International, Inc., alleging that consumers were charged misleading fees during hotel”Page 22 of the 2026 FDD, Item 3
CS Anaheim Hotel Investments, LLC v. Choice Hotels International, Inc.
pending
Brought by a franchisee · filed 2024-10-01 · United States District Court for the Central District of California; American Arbitration Association · 8:24-cv-02131; AAA 01-25-0003-4509
“… United States District Court for the Central District of California, Case No. 8:24-cv- 02131 American Arbitration Association, Case No.: 01-25-0003-4509 On October 1, 2024, Plaintiff CS Anaheim Hotel Investments, LLC filed a complaint against Choice alleging a fraudulent rebate scheme with vendors, misuse of system fees,”Page 21 of the 2026 FDD, Item 3
T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC
pending
Brought by a franchisee · filed 2023-06-26 · United States District Court for the Middle District of Florida (transferred to District of Minnesota) · 6:23-cv-01187
“… United States District Court for the Middle District of Florida, Case No. 6:23-cv-01187 On June 26, 2023, Plaintiff T&T Management, Inc. (“Licensee”) commenced a federal district court action in Florida against, among others, Radisson Hotels International, Inc.”Page 21 of the 2026 FDD, Item 3
Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al.
pending
Brought by a franchisee · filed 2020-06-12 · United States District Court for the Eastern District of Pennsylvania · 2:20-cv-02823
“… United States District Court for the Eastern District of Pennsylvania, Case No. 2:20-cv-”Page 20 of the 2026 FDD, Item 3

Concluded (4)

Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al.
judgment
Brought against a franchisee · filed 2021-04-09 · American Arbitration Association · 01-21-0003-7036
“… American Arbitration Association, Case #01-21-0003-7036 On April 9, 2021, Choice initiated this arbitration to pursue contractually due franchise fees, a promissory note balance, and lost profit damages from the franchisees in the amount of $498,495.93. On May 19, 2021, Franchisees filed a counterclaim against Choice in the amount”Page 30 of the 2026 FDD, Item 3
Outcome: “DIP Hospitality, LLC prevailed on its wrongful termination claim in the amount of $4,411.678.56 and were found to be the prevailing party and awarded fees and costs in the amount of $430,125.87. DIP filed a motion to modify or partially vacate the arbitration award with regard to the apportionment of arbitration costs; we opposed the motion; the court denied it; and DIP is appealing the denial.”
Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al.
judgment
Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the District of Maryland, Southern Division · AAA 01-21-0004-5563; 8:2023cv01685
“… American Arbitration Association, Case #01-21-0004-5563 United States District Court for the District of Maryland, Southern Division, Case No. 8:2023cv01685 On June 29, 2021, Dahya Investments Incorporated and Dinu Patel (“Dahya”) filed an arbitration against Choice Hotels International, Inc. and Choice Hotels”Page 30 of the 2026 FDD, Item 3
Outcome: “A Final Award was issued on May 9, 2023 finding that: 1) Choice must pay $882 for breach of contract, and 2) Dahya must pay Choice the sum of $603,483.00 for attorney’s fees and costs relating to the dismissed claims. Choice filed a motion to confirm the Final Award against Dahya and the Final Award was confirmed into a judgment on January 17, 2024 at the motion to seal hearing.”
Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al.
judgment
Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the Eastern District of Pennsylvania · AAA 01-21-0004-5554; 5:20cv2823
“… American Arbitration Association, Case #01-21-0004-5554 United States District Court for the Eastern District of Pennsylvania, Case #5:20cv2823 On June 29, 2021, Highmark Lodging, LLC and Darshan Patel (“Highmark”) filed an arbitration against Choice Hotels International, Inc. and Choice Hotels Owners Council in”Page 30 of the 2026 FDD, Item 3
Outcome: “A Final Award was issued on July 27, 2023 against Choice and in favor of Highmark in the amount of $740,072.25. Highmark filed a motion to confirm the Final Award and Choice filed a motion to vacate in part. Choice’s motion was denied, and a final judgment was entered against Choice in the amount of $779,398.40 on March 4, 2024.”
Sender Kohl v. Choice Hotels International, Inc.
settled
Brought by a franchisee · filed 2018-10-29 · United States District Court for the Southern District of Florida, Fort Lauderdale Division; American Arbitration Association · 0:18-cv-62597; AAA 01-19-0000-1797
“… United States District Court for the Southern District of Florida, Fort Lauderdale Division, Case #0:18-cv-62597 and American Arbitration Association, Case #01-19-0000-1797 On October 29, 2018, Sender Kohl filed an action against us seeking damages in an unspecified amount. The complaint alleged breach of contract, breach of the implied covenant of”Page 29 of the 2026 FDD, Item 3
Outcome: “25, 2021, the parties settled this dispute. As part of the settlement, Choice agreed to pay its former franchisee $85,000.00 in exchange for dismissal of the arbitration.” (page 30)

Status not stated in the filing (5)

Baba Nanak Hospitality Group Corp, Hardeep Arora, and Parmeet Arora
Brought against a franchisee · filed 2025-06-13 · U.S. District Court Eastern District of Wisconsin (Milwaukee) · 2:25-cv-00848
“ACTIONS INITIATED BY CHOICE TO ENFORCE INTELLECTUAL PROPERTY RIGHTS – POST TERMINATION Defendants Venue Case Number Filing Date Baba Nanak Hospitality Group Corp, Hardeep Arora, and Parmeet Arora U.S. District Court Eastern District of Wisconsin (Milwaukee) 2:25-cv-00848 June 13, 2025”Page 29 of the 2026 FDD, Item 3
INTERCONTINENTAL MANAGEMENT, LLC, Nasir Habib, Shahid Hussain, and Sohail Khan
Brought against a franchisee · filed 2025-09-04 · U.S. District Court Southern District of Indiana (Indianapolis) · 1:25-cv-01758
“Parmeet Arora U.S. District Court Eastern District of Wisconsin (Milwaukee) 2:25-cv-00848 June 13, 2025 INTERCONTINENTAL MANAGEMENT, LLC, Nasir Habib, Shahid Hussain, and Sohail Khan U.S. District Court Southern District of Indiana (Indianapolis) 1:25-cv-01758 September 4, 2025”Page 29 of the 2026 FDD, Item 3
Mansfield Hotel, LLC, Gita Jasani, and Satish Patel, a/k/a as Sam Saspra
Brought against a franchisee · filed 2025-10-01 · U.S. District Court Northern District of Ohio (Cleveland) · 1:25-cv-02093
“1:25-cv-01758 September 4, 2025 Mansfield Hotel, LLC, Gita Jasani, and Satish Patel, a/k/a as Sam Saspra U.S. District Court Northern District of Ohio (Cleveland) 1:25-cv-02093 October 1, 2025”Page 29 of the 2026 FDD, Item 3
Marietta Hotels LLC, Saranath T. Annamalai, Venkatesh Muthukumar, and Murugan Ganesh
Brought against a franchisee · filed 2025-01-14 · American Arbitration Association · 01-25-0000-2533
“ACTIONS INITIATED BY CHOICE TO RECOVER ROYALTIES, LIQUIDATED DAMAGES AND OTHER DEBTS OWED TO CHOICE HOTELS Defendant or Respondent Venue Case Number Filing Date Marietta Hotels LLC, Saranath T. Annamalai, Venkatesh Muthukumar, and Murugan Ganesh American Arbitration Association 01-25-0000-2533 January 14, 2025”Page 22 of the 2026 FDD, Item 3
Siddhi Vinayak Hospitality Inc., Harsiddhi Properties LLC, Shailesh Patel, Ashish Patel, and Chirag Patel
Brought against a franchisee · filed 2025-11-20 · U.S. District Court Central District of Illinois (Rock Island) · 4:25-cv-04212
“1:25-cv-02093 October 1, 2025 Siddhi Vinayak Hospitality Inc., Harsiddhi Properties LLC, Shailesh Patel, Ashish Patel, and Chirag Patel U.S. District Court Central District of Illinois (Rock Island) 4:25-cv-04212 November 20, 2025”Page 29 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (1)

Norma Knuth v. Radisson Hotels International, Inc., et al.
pending
Radisson Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. ("Country") · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan · QBG No. 2560 of 2014
“… Court of Queen’s Bench for Saskatchewan, Court File No. QBG No. 2560 of 2014 On December 5, 2014, Norma Knuth filed a complaint under the Class Actions Act against over 25 named defendants, including Country, alleging that the defendants wrongfully collected undisclosed destination marketing fees (“DMF”) charged to the plaintiff and other”Page 20 of the 2026 FDD, Item 3

This list shows 15 of the 141 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.

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?

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