FDD Items 3 & 4 · 2026 filing

Extended Stay America Premier Suites litigation history

What Extended Stay America Premier Suites 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: 4; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: $100K; 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

Three pending antitrust class actions (consolidated) alleging Sherman Act violations via revenue management algorithm software; two IP enforcement actions filed by ESH against franchisees; one prior class action settled in July 2024 for $100,000

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

Litigation cases

The franchisor

Pending (2)

ESH Strategies Franchise LLC v. ATX8221 LLC
pending
Brought against a franchisee · filed 2025-08-11 · W.D.N.C. · 3:23-cv-00607
“… Civil Action No. 3:23-cv-00607 (W.D.N.C). Case filed on August 11, 2025. III.”Page 15 of the 2026 FDD, Item 3
ESH Strategies Franchise LLC v. Amba Mata LLC
pending
Brought against a franchisee · filed 2025-05-16 · E.D.N.C. · 5:25-cv-00261
“… Civil Action No. 5:25-cv-00261 (E.D.N.C). Case filed on May 16, 2025. ESH Strategies Franchise LLC v. ATX8221 LLC, Civil Action No. 3:23-cv-00607 (W.D.N.C).”Page 15 of the 2026 FDD, Item 3

Concluded (1)

Latreass “Lisa” Brittian v. ESA Management LLC, et al.
settled
Brought by a third party · filed 2022-12-12 · W.D.N.C. · 3:22-cv-00663-MOC-DCK
“… Civil Action No. 3:22-cv-00663-MOC-DCK (W.D.N.C.) On December 12, 2022, Brittian filed a class action complaint against several of our affiliates, a franchisee and the franchisee’s management company in the United States District Court for the Western District of North Carolina.”Page 15 of the 2026 FDD, Item 3
Outcome: “On July 16, 2024, the parties entered into a confidential settlement in which the defendants agreed to pay Plaintiff $100,000 in exchange for a dismissal of the lawsuit.” (page 16)

Parent, affiliates, master franchisor and subfranchisor

Pending (1)

In re Extended Stay Hotel Antitrust Litigation (consolidating Andy Au, et al. v. Integrated Decisions and Systems, Inc., et al. and Gonzalez, et al. v. Integrated Decisions and Systems, Inc., et al.)
pending
Brought by the franchisor · Extended Stay America, Inc. · filed 2024-07-24 · N.D. Ill.; transferred to N.D. Cal. · 24-cv-09060
“In re Extended Stay Hotel Antitrust Litigation, Case No. 24-cv-09060. On September 19, 2024, the two cases referenced below were consolidated under this case.”Page 14 of the 2026 FDD, Item 3

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 active litigation exposures including two consolidated antitrust class actions on revenue management software (core operational tool) and two IP enforcement actions initiated by franchisor against franchisees

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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