FDD Items 3 & 4 · 2024 filing
Crowne Plaza litigation history
What Crowne Plaza disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
- 19
- Item 3, as counted in the filing
- Largest disclosed settlement
- $699K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Pending matters include: (1) TJM Columbus/Syracuse v. Holiday (2022) re conversion interference and kickbacks; (2) Holiday v. Khatiwala (2020) re unpaid fees; (3) Marina di Castello v. IHG Hotels Limited (Italy, 2013) re license validity/fees; (4) Atlanta Hospitality Investment v. Holiday (2023) re unconscionable license; (5) Vasani v. Holiday (2023) re renovation scope misrepresentation; (6) Park 80 Hotels class action (2022) re data breach; (7) consolidated 5-plaintiff class action (2021-22) re kickbacks/unreasonable standards; (8) Scion Hotels v. Holiday (2021) re wrongful non-renewal; (9) Astoria Enterprises v. Holiday (Canada, 2007) re non-renewal; (10) K.J. Harjani v. SCH (Brazil, 2006) re wrongful termination. Nine suits filed by Holiday against licensees for unpaid fees in 2023.
Disclosure signals that moved the score
How this shows up in the verdict
- Extensive litigation across multiple jurisdictions including fraud allegations, statutory violations, data breaches, and kickback schemes demonstrates governance failures and legal exposure
- No going concern status (False) suggests financial instability at corporate level, threatening franchisee support and brand viability
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?