FDD Items 3 & 4 · 2026 filing
Embassy Suites by Hilton litigation history
What Embassy Suites 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 15
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- Not extracted
- 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
5 pending actions (1 vs franchisor breach of contract, 4 class action antitrust); 5 concluded actions involving franchisor (breach of contract, consumer protection/fee disclosure settlements with TX $2.1M and NE $300K, franchise disputes); 4 collection suits against former franchisees; 1 historical 1971 Sherman Act consent decree involving predecessor HHC
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active antitrust lawsuits and recent AG settlements indicate systemic compliance issues with pricing transparency and guest fee disclosures
- Litigation pattern shows breach of contract and termination disputes with franchisees, suggesting contentious franchisor-franchisee relationships
- 23-year term is lengthy given declining unit trajectory and litigation exposure; exit options may be limited
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?