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FranchiseVerdict

FDD Items 3 & 4 · 2026 filing

Home2 Suites by Hilton litigation history

What Home2 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 & 4 at a glance

What the filing discloses

Cases disclosed
14
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 v. HFH LLC (RI, breach of contract); In re Extended Stay Hotel Antitrust Litigation (N.D. Cal., Sherman Act class action); Hanson Dai v. SAS Institute (N.D. Cal., Sherman Act class action); Ryan Segal v. Amadeus IT Group (N.D. Ill., Sherman Act class action); Jeanette Portillo v. CoStar Group (W.D. Wash., Sherman Act class action). Concluded: AAAA Property Partners v. HFH (settled 2025); State of Texas v. Hilton (settled Jan 2025, $2.1M); State of Nebraska v. Hilton (settled Feb 2024, $300K); HFH v. Portland Hotel Ownership (settled 2022); San Pedro Inn v. HFH (settled 2020); U.S. v. Hilton Hotels Corp. (1971 consent decree). Collection suits (2025): ML Plaza, Unique Crowne Hospitality, Empower Metro Center, In re 177 BFP.

Disclosure signals that moved the score

How this shows up in the verdict

  • Active antitrust litigation alleging price-fixing through revenue management software affecting entire system credibility and potential liability
  • State-level consumer protection litigation (TX, Nebraska) regarding mandatory fee disclosure suggests systemic compliance issues

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?