FDD Items 3 & 4 · 2026 filing
DoubleTree by Hilton litigation history
What DoubleTree by Hilton 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 9
- Item 3, as counted in the filing
- Largest disclosed settlement
- $2.1M
- 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: Bow Hospitality (franchise termination), In re Extended Stay Hotel Antitrust Litigation (Sherman Act), Hanson Dai v. SAS Institute (Sherman Act, hotel rate-setting), Ryan Segal v. Amadeus IT Group (Sherman Act), Jeanette Portillo v. CoStar Group (Sherman Act). Concluded: AAAA Property Partners (breach of contract, settled), State of Texas v. Hilton (deceptive trade practices, settled $2.1M), State of Nebraska v. Hilton (consumer protection, settled $300K), Hilton v. Portland Hotel Ownership (breach/fraudulent inducement, settled), San Pedro Inn v. Hilton (wrongful termination NJ, settled), U.S. v. HHC (1970 Sherman Act, injunction). Collection suits against franchisees also disclosed.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active antitrust litigations alleging price-fixing and improper rate-setting software create legal/reputational risk and potential for franchisor liability
- Breach of contract termination lawsuits indicate aggressive enforcement and compliance standards that may expose franchisees to termination risk
- Consumer protection litigation regarding mandatory guest fee disclosure suggests potential brand reputation damage and guest dissatisfaction
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?