FDD Items 3 & 4 · 2024 filing
EVEN Hotels litigation history
What EVEN Hotels 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
- $10.9M
- 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
Multiple pending cases; Holiday as plaintiff in collection actions against licensees for unpaid fees and liquidated damages; Holiday as defendant in cases involving alleged improper renovation requirements, kickbacks from required vendors, wrongful non-renewal, and a data breach class action. No concluded or pending litigation relates solely to the EVEN Hotels brand. Several concluded cases settled with payments to Holiday.
Disclosure signals that moved the score
How this shows up in the verdict
- Going concern warning indicates potential financial distress at corporate level
- Multiple litigation cases including class actions and system access disputes indicate operational and governance problems
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?