FDD Items 3 & 4 · 2026 filing
Hometowne Studios By Red Roof litigation history
What Hometowne Studios By Red Roof 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
- 3
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
1) HP Holding LLC/HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC (D.N.J., pending) - former franchisee alleges breach of franchise agreement, tortious interference, and NJ Franchise Practices Act violations. 2) State of Maryland v. Red Roof Franchising, LLC (2014) - Maryland Securities Commissioner consent order for offering/selling a franchise while registration renewal was pending; concluded. 3) Red Roof Franchising, LLC v. Janam Madison Lodging LLC et al. (2025) - collection action filed by RRF against a franchisee in Georgia state court.
Item 3 (litigation) · 3 matters disclosed · 1 pending listed
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
HP Holding LLC and HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC
pendingBrought by a franchisee · Red Roof Franchising, LLC (RRF, our parent) and Red Roof Inns, Inc. (RRI, a higher parent) · filed 2023-10-05 · United States District Court for the District of New Jersey · 23-cv-20907-RMB-MJS
“… Civil Action No. 23-cv-20907-RMB-MJS (United States District Court for the District of New Jersey).”Page 13 of the 2026 FDD, Item 3
Concluded (1)
State of Maryland v. Red Roof Franchising, LLC
concludedGovernment or regulatory action · Red Roof Franchising, LLC (RRF, our parent) · filed 2014-09-24 · Securities Commissioner of Maryland · 2014-0330
“… No. 2014-0330 (Securities Commissioner of Maryland, September 24, 2014) As of September 24, 2014 the Securities Division of the Office of the Attorney General of Maryland (the “Securities Division”) initiated an”Page 13 of the 2026 FDD, Item 3
Status not stated in the filing (1)
Red Roof Franchising, LLC v. Janam Madison Lodging LLC et al
Brought by the franchisor · Red Roof Franchising, LLC (RRF, our parent) · filed 2025 · State Court of Rockdale County, Georgia · 2025-SV-4277
“… Case No. 2025-SV-4277 (State Court of Rockdale County, Georgia).”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.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
HTS's General Counsel, Gerrod Bede, previously served as General Counsel of ASTECH Engineered Products, Inc. (n/k/a AEP Legacy, Inc.), which filed for Chapter 11 reorganization on July 15, 2022 (Case No. 22-10635-BLS, Bankr. Del.); a plan of liquidation was confirmed May 20, 2024 and the case closed January 2, 2026. No bankruptcy of the franchisor itself was disclosed.
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?