FDD Items 3 & 4 · 2024 filing
InterContinental Hotels & Resorts litigation history
What InterContinental Hotels & Resorts 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
- 40
- 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
Extensive Item 3 disclosure (none relating solely to the InterContinental brand). Pending matters include licensee collection/liquidated-damages suits and licensee counterclaims, a putative class action over a 2022 systems-access incident, and five consolidated class actions (CT, LA, OH, TX, NM) alleging improper franchise practices/kickbacks. Numerous concluded matters, including data-breach class actions and the Lenexa Hotel matter (Holiday paid $10.9M). Most relate to the broader Holiday/IHG system rather than the InterContinental brand specifically.
Disclosure signals that moved the score
How this shows up in the verdict
- Going concern status is FALSE — indicates potential solvency or operational viability issues at corporate level
- Extensive litigation history including breach of contract, unpaid franchise fees, and class actions suggests systemic franchisor-franchisee relationship problems
- Trademark disputes mentioned in litigation history raises questions about brand integrity and legal standing
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?