FDD Items 3 & 4 · 2026 filing

Days Inn litigation history

What Days Inn 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: 24; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $500K; 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

Pending cases include class actions against franchisor and WHR affiliates involving Canadian Destination Marketing Fees (Knuth), hotel algorithmic price-fixing conspiracy (Benoit, Jantunen, Proulx, In Re Extended Stay, Hanson Dai), breach of franchise agreement (Beard Real Estate, Tumas Raju Patel), and franchisor breach claims (WHG v. LuxUrban). Resolved cases include several franchisee breach-of-contract suits (Niazi, Tan, Jariwala/Lancs, Patel Hospitality), a guest resort-fee class action (Luca), keyword advertising restraint (Brodsky), call recording privacy (Roberts), and FTC cybersecurity action (settled). Recent franchisee suits for non-payment and indemnification also disclosed.

Item 3 (litigation) · 24 matters disclosed · 4 pending listed

Litigation cases

The franchisor

Pending (1)

Norma Knuth v. Wyndham Worldwide Corporation, et al.
pending
filed 2014-12-05 · Court of Queen's Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014
“On December 5, 2014, Plaintiff Norma Knuth filed a class action suit as a representative of all “persons, corporations, and entities, resident or situated in Canada . . . that paid a “Destination Marketing Fee” to a hotel in Canada owned, operated, or managed by one of the defendants.” Plaintiff named Wyndham Worldwide Corporati”Page 21 of the 2026 FDD, Item 3

Concluded (4)

Days Inns Worldwide, Inc. v. Niazi Hotel LLC and Wasim Niazi
settled
Brought against a franchisee · filed 2024-07-03 · United States District Court for the District of New Jersey · 2:24-cv-7528-WJM-AME
“On July 3, 2024, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On September 19, 2024, Defendants filed an Answer and Counterclaim alleging breach of contract, breach of implied covenant of good faith and fa”Page 24 of the 2026 FDD, Item 3
Outcome: “The parties reached a settlement in September 2025 wherein defendants dismissed their Counterclaims and are making a settlement payment 26 Days Inn FDD MB Q1/2026 of $335,000 in monthly payments to Days Inns Worldwide, Inc. from September 2025 through August 2026.” (page 25)
Days Inns Worldwide, Inc. v. Tan Lodging Investment, LLC and Jawan Dabish
settled
Brought against a franchisee · filed 2024-03-06 · United States District Court for the District of New Jersey · 2:24-cv-01660-MCA-SDA
“On March 6, 2024, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On April 19, 2024, as amended on July 19, 2024, defendants filed an Answer and Counterclaim alleging breach of contract and breach of the cove”Page 25 of the 2026 FDD, Item 3
Outcome: “The parties reached a settlement in December 2025 wherein defendants dismissed their Counterclaims, the Court entered a Consent Judgment in the amount of $500,000 against Tan Lodging Investment, LLC and Jawan Dabish and in favor of Days Inns Worlwide, Inc., and Lodging Investment, LLC and Jawan Dabish are making monthly payments”
Days Inns Worldwide, Inc. v. Patel Hospitality, LLC, Pravin Patel, and Vatsal Patel
settled
Brought against a franchisee · filed 2021-04-06 · Superior Court of New Jersey, Morris County Law Division · MRS-L-748-21-RER
“On April 6, 2021, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On July 13, 2021, as amended on July 14, 2021, defendants filed an Answer with Counterclaim against Days Inns Worldwide, Inc. and a Third-Part”Page 25 of the 2026 FDD, Item 3
Outcome: “The parties reached a settlement in March 2024 in which defendants made a payment to Days Inns Worldwide, Inc., entered into a Consent Judgment for $100,000 in favor of Days Inns Worldwide, Inc., and dismissed its Counterclaim. Resolved Lit” (page 26)
Lancs Hospitality LLC, et al. v. Days Inns Worldwide, Inc., et al.
judgment
Brought by a franchisee · filed 2019-08-13 · Superior Court of New Jersey, Law Division, Morris County · MRS-L-001730-19
“On August 13, 2019, former franchisee entities Lancs Hospitality LLC, S Boston Hospitality, LLC, HR Penn, LLC, and RHR Wildwood 423, LLC, along with their corresponding guarantors, Urjita P. Bhoola, Hemlata R. Jariwala, Rajendra Jariwala, Guarang Jariwala, and Abhishek Jariwala, (collectively, the “Jariwala Parties”) jointly fil”Page 25 of the 2026 FDD, Item 3
Outcome: “the Court granted the Wyndham Entities default judgment against the corporate Jariwala Parties, after their pleadings were stricken. The individual Jariwala Parties proceeded pro se. On March 3, 2023, the Court granted the Wyndham Entities' Motion for Summary”

Status not stated in the filing (4)

Days Inns Worldwide, Inc. and Baymont Franchise Systems, Inc. v. Arihant of SC LLC, Tulsa Stillwater Hospitality, LLC, South Hill Hospitality LLC, Bhavik Shah, Mital Shah, and Priyank Shah
Brought against a franchisee · filed 2026-02-24 · United States District Court for the District of New Jersey · 2:26-cv-01808
“… 2/24/2026 United States District Court for the Dist”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. and Wyndham Hotel Group, LLC v. Bridge Inn LLC and Eldad Cohen
Brought against a franchisee · filed 2026-03-05 · Superior Court of New Jersey Morris County, Law Division · MRS-L-547-26
“… 3/5/2026 Superior Court of New Jersey Morris County, Law Division MRS-L-547-26 Caption Date”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. v. AOA Hospitality, LLC and Abid Siddiq
Brought against a franchisee · filed 2026-03-03 · United States District Court for the District of New Jersey · 2:26-cv-2216
“… 3/3/2026 United States District Court for the District of New Jersey 2:26-cv-2216 Caption Date Complaint”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. v. Mian Hospitality Solutions, LLC and Mohammed Bashir
Brought against a franchisee · filed 2026-02-19 · United States District Court for the Central District of Illinois · 1:26-cv-1859
“… 2/19/2026 United States District Court for the Central District of Illinois 1:26-cv-1859 Days Inns”Page 28 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (3)

Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.
pending
Brought by a franchisee · Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. · filed 2025-08-04 · Circuit Court of Chicot County, Arkansas, Civil Division · 09-cv-25-119
“On August 4, 2025, Plaintiff filed suit against Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. (the “Wyndham Entities”) alleging breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, fraudulent and negligent misrepresentation, and unjust enrichment. On September 10,”Page 23 of the 2026 FDD, Item 3
Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.
pending
Brought by a franchisee · Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group and Super 8 Worldwide, Inc. · filed 2025-12-02 · United States District Court, Central District of California · CV25-03815
“On December 2, 2025, Plaintiffs filed suit against Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. (the “Wyndham Entities”) alleging that the Wyndham Entities (1) violated California law, including the Business and Professions Code and the California Franchise Relations Act, for failure to prov”Page 23 of the 2026 FDD, Item 3
Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand
pending
Brought against a franchisee · Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc. and Baymont Franchise Systems, Inc. · filed 2024-05-16 · The Superior Court of New Jersey, Morris County · MRS-L-000977-24
“On May 16, 2024, as amended on November 14, 2024, Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc., and Baymont Franchise Systems, Inc. filed suit against defendants for breach of contract seeking recurring fees, liquidated damages, outstanding balance of various development incentive notes, interest, attorn”Page 23 of the 2026 FDD, Item 3

This list shows 12 of the 24 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 class action lawsuits regarding marketing fees, price fixing, and consumer protection violations indicate regulatory and legal exposure
Litigation between franchisor and franchisees over breach of contract indicates franchise relationship deterioration and enforcement disputes

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?

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