FDD Items 3 & 4 · 2026 filing
Holiday Inn litigation history
What Holiday 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 38
- 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
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Numerous suits by Holiday against licensees for unpaid fees/liquidated damages after termination (many resulting in counterclaims alleging breach of good faith, unreasonable standards, kickbacks from required vendors); several putative class actions alleging improper franchise practices/kickbacks under state deceptive trade practices and franchise acts, largely resolved in Holiday's favor or settled without payment; one historical settlement paid by Holiday of $10.9M (Lenexa Hotel matter); a confidential arbitration award against an IHG entity (Tsemex) and against IHG Hotels Limited in the Foremost Hospitality arbitration.
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?