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FDD Items 3 & 4 · 2024 filing

Kimpton® Hotels & Restaurants litigation history

What Kimpton® Hotels & Restaurants 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
61
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
None stated
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

No pending litigation relating solely to Kimpton brand. Multiple pending cases involving affiliates Holiday Hospitality Franchising LLC and Six Continents Hotels (SCH) for unpaid franchise fees, breach of contract, class actions re kickbacks and data breach. Several Kimpton-specific matters (credit card breach, BIPA class action, data security breach) concluded via settlement.

Item 3 (litigation) · 61 matters disclosed · 11 pending listed

Litigation cases

The franchisor and its predecessor

Concluded (3)

  • Anderson, et al. v. Kimpton Hotel & Restaurant Group, LLC

    settled

    Kimpton Hotel & Restaurant Group, LLC · filed 2019-04-05 · United States District Court, Northern District of California · Civil Action Case No. 3:19-cv-01860-MMC

    “On April 5, 2019, Plaintiffs filed a purported class action suit alleging that they were harmed by the compromise of personal information due to a data security breach affecting Kimpton Hotels during the period August 10, 2016 – March 9, 2017. This suit relates to the breach of the Sabre SynXis reservation system used by Kimpton during the referenced time frame.”Page 27 of the 2024 FDD, Item 3

    Outcome: “On May 26, 2023, the parties signed a settlement agreement resulting in Kimpton Hotels making payment to plaintiffs. The case was dismissed with prejudice on May 26, 2023”

  • Eric Zepeda v. Intercontinental Hotels Group, Inc. and Kimpton Hotel & Restaurant Group, LLC

    settled

    Kimpton Hotel & Restaurant Group, LLC (Intercontinental Hotels Group, Inc. was voluntarily dismissed) · filed 2018-02-16 · Circuit Court of Cook County, Illinois County Department, Chancery Division · Case No. 2018-CH-02140

    “On June 27, 2017, Eric Zepeda filed a class action suit against Intercontinental Hotels Group, Inc. and Kimpton Hotel & Restaurant Group, LLC, alleging violation of the Illinois Biometric Information Privacy Act, 740 ILCS 14/1, et seq., which Kimpton removed to U.S. District Court for the Northern District of Illinois. Intercontinental Hotels Group, Inc. was voluntarily dismissed from the action.”Page 27 of the 2024 FDD, Item 3

    Outcome: “The court granted final approval on December 5, 2018. The third-party class administrator has notified all class members and is facilitating payment of claims. The court action is now closed.”

  • Lee Walters v. Kimpton Hotel & Restaurant Group, LLC

    settled

    Kimpton Hotel & Restaurant Group, LLC · filed 2016-09-20 · United States District Court, Northern District of California · Civil Action No. 3:16-cv-05387-VC

    “… United States District Court, Northern District of California, Civil Action No. 3:16-cv-05387-VC (September 20, 2016). On September 20, 2016, Lee Walters filed a class action suit against Kimpton Hotel & Restaurant Group, LLC alleging damages from a credit card breach.”Page 27 of the 2024 FDD, Item 3

    Outcome: “Following discovery and mediation on March 12, 2018, the parties reached agreement to resolve this matter on a class-wide basis, subject to court approval. The Court granted preliminary approval of the settlement on January 19, 2019.”

Parent, affiliates, master franchisor and subfranchisor

Pending (11)

  • Holiday Hospitality Franchising, LLC v. Momentum Fort Worth Investment LLC, Abdul Majid Hassanally and Shahnaz Majid Hassanally

    pending

    Brought against a franchisee · Holiday Hospitality Franchising, LLC · filed 2024 · State Court of DeKalb County, Georgia · Civ. Action No. 24A00417

    “Holiday filed this suit against the defendants seeking liquidated damages, unpaid franchise fees, and other amounts exceeding $1.5 million arising from defendants alleged breach of a Holiday Inn license agreement and Holiday’s subsequent termination of the license related thereto.”Page 20 of the 2024 FDD, Item 3

    Outcome: “Holiday believes its claims are meritorious, the Defendants’ counterclaims and defenses are not, and Holiday is prosecuting its case and defending against the counterclaims vigorously.”

  • Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC, Surati Investment, LLC, Raiyan Rab, Numarix Real Estate Services, LLC, Mark Wolfe, Equity Central Realty, LLC

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2023-07-17 · Court of Common Pleas, Lucas County, Ohio · Case No. G-4801-CI-0202303085-000

    “Plaintiffs claim that, in connection with the sale process related to the Hotel, they were misled into believing the scope of work required by the change of ownership license agreement for the hotel would be lighter in scope and less expensive than what it turned out to be.”Page 21 of the 2024 FDD, Item 3

    Outcome: “Appellate briefing is ongoing and the appeal remains pending.”

  • Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2023-10-31 · DeKalb County, Georgia Superior Court · Civ. Action No. 23-CV-9509

    “The amended petition alleges that Holiday made certain misrepresentations to plaintiffs in advance of the execution of the license agreement but asserted no claim for damages.”Page 20 of the 2024 FDD, Item 3

    Outcome: “Holiday believes the plaintiff’s summary judgment motion has no merit and will file its own summary judgment motion at the appropriate time.” (page 21)

  • Park 80 Hotels, LLC, PL Hotels, LLC, Mayur Patel, JSK Exton LLC, Jay Z. Kuber Hospitality, Inc., Parmattma Corporation and Synergy Hotels, LLC, individually and on behalf of all others similarly situated v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental H

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc.; IHG Technology Solutions, LLC · filed 2022 · N.D.Ga. · Case 1:22-cv-03709-LMM

    “The putative class action lawsuit brought on behalf of putative classes of Holiday licensees relates to an unauthorized access to certain of IHG’s systems by third party bad actors that resulted in a temporary disruption of certain services which plaintiffs allege had a negative impact on their businesses.”Page 23 of the 2024 FDD, Item 3

    Outcome: “Holiday, SCH and IHG Technology Solutions, LLC believe the allegations to be meritless and are defending vigorously.”

  • TJM Columbus, LLC d/b/a Crowne Plaza-Columbus North and TJM Syracuse, LLC d/b/a Crowne Plaza Syracuse v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc. · filed 2022-05-23 · DeKalb County, Georgia Superior Court (removed twice to N.D. Ga., 1:22-cv-2541-VMC and 1:24-cv-00055-VMC; remanded) · Civ. Action No. 22-cv-5181

    “Plaintiffs are Crowne Plaza® licensees (for the Crowne Plaza® Columbus North – Worthington and the Crowne Plaza® Syracuse, respectively). Plaintiffs assert a breach of contract claim against Holiday and SCH related to a proposed sale of the subject hotels to a developer that intended to convert the subject hotels out of the Crowne Plaza® system.”Page 23 of the 2024 FDD, Item 3

    Outcome: “Holiday and SCH filed a renewed motion for summary judgment on all claims on May 23, 2024, which remains pending.” (page 24)

  • Park 80 Hotels LLC, a Louisiana limited liability company, PL Hotels, LLC, a Louisiana limited liability company, individually, and on behalf of a class of similarly situated individuals and entities v. Holiday Hospitality Franchising, LLC, Six Continents Hotels, Inc. D/b/a Intercontinental Hotels G

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC; Six Continents Hotels, Inc.; IHG Owners Association, Inc. · filed 2021-05-19 · United States District Court, Northern District of Georgia (consolidated; lead case filed in E.D. La.) · Civil Action No. 1:21-cv-04650-ELR (consolidated)

    “Each of the lawsuits allege that Holiday and SCH engages in unlawful and otherwise improper franchise business practices, including, imposing unreasonable products, services and requirements and receiving improper kickbacks from required purchases.”Page 24 of the 2024 FDD, Item 3

    Outcome: “On March 13, 2024, Holiday and SCH filed their opposition to class certification and a motion to exclude Plaintiffs’ expert, and Plaintiffs filed a response to Holiday and SCH’s summary judgment motion. Both motions remain pending.” (page 25)

  • Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, LLC · filed 2021-02-18 · D.N.J · Case No. 2:21-cv-02276-MCA-MAH

    “Scion Hotels LLC (“Scion”), a New Jersey licensee of a Holiday Inn hotel, filed a civil complaint against Holiday to obtain damages for violation of the New Jersey Franchise Practices Act in allegedly wrongfully imposing unreasonable standards of performance upon Scion and then wrongfully refusing to renew its license agreement.”Page 21 of the 2024 FDD, Item 3

    Outcome: “The parties have completed fact and expert discovery, and Holiday filed a motion for summary judgment on all claims on April 28, 2023, which has been fully briefed, and the parties are awaiting the Court’s ruling.” (page 22)

  • Holiday Hospitality Franchising, LLC v. Niranjan Khatiwala, Nimesh D. Vesuwala and Mayur N. Khatiwala

    pending

    Brought against a franchisee · Holiday Hospitality Franchising, LLC · filed 2020-12-11 · State Court of Dekalb County, Georgia (transferred to Superior Court of DeKalb County, Civil Action No. 22CV4560) · Civil Action File No. 20A83898

    “On December 11, 2020, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Crowne Plaza® license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 25 of the 2024 FDD, Item 3

    Outcome: “The case is currently pending in the Superior Court of DeKalb County, Georgia under Civil Action No. 22CV4560.” (page 26)

  • Marina di Castello SpA v. IHG Hotels Limited

    pending

    Brought by a franchisee · IHG Hotels Limited · filed 2013-11-22 · Court of Santa Maria Capua Vetere, Italy · Docket No. 4307/27

    “The former licensee of the Holiday Inn Resort Naples - Castel Volturno hotel and the Crowne Plaza Caserta hotel issued a claim against IHG Hotels Limited (“IHGHL”), brought in the Court of Santa Maria Capua Vetere, seeking to have the Court: 1) declare that the arbitration provisions in the license agreements are invalid; 2) determine whether or not IHGHL's conduct has resulted in damages to the”Page 22 of the 2024 FDD, Item 3

    Outcome: “On October 10, 2023 the former licensee filed an appeal which is now pending.”

  • Astoria Enterprises Ltd. v. Holiday Hospitality Franchising, Inc. and InterContinental Hotels Group PLC

    pending

    Brought by a franchisee · Holiday Hospitality Franchising, Inc.; InterContinental Hotels Group PLC · filed 2007-12-21 · The Queen’s Bench Winnipeg Centre · File No. CI-07-01-54936

    “On December 21, 2007, Astoria Enterprises (“Astoria”), a former Licensee, filed suit against Holiday demanding $541,000 in damages for failing to renew or extend an existing license beyond its original termination date and for loss of reputation. According to Astoria, Holiday’s refusal to renew the License was wrongful and commercially unreasonable.”Page 22 of the 2024 FDD, Item 3

    Outcome: “Holiday filed an answer denying any liability, and discovery is ongoing.”

  • K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.

    pending

    Brought by a franchisee · Six Continents Hotels, Inc. · filed 2006-07-05 · 3rd Civil Court of Manaus, Brazil · Case No. 0022145-55.2006.8.04.0001

    “… 3rd Civil Court of Manaus, Brazil, Case No. 0022145-55.2006.8.04.0001 (July 5, 2006). The former licensee of the Holiday Inn® hotel in Manaus, Brazil filed a lawsuit seeking damages for alleged wrongful termination of the license agreement. The license agreement was terminated due to non-compliance with brand standards in 2002.”Page 22 of the 2024 FDD, Item 3

    Outcome: “SCH intends to defend against this claim vigorously.”

Concluded (1)

  • Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.

    settled

    Brought by a franchisee · Holiday Hospitality Franchising, Inc. · filed 2012 · United States District Court, District of Kansas, Kansas City Division, KS · Case No. 12CV2775; Case No. 15-9196

    “A lawsuit was filed by a Crowne Plaza® licensee in Lenexa, Kansas, initially on December 10, 2012 and later amended on January 17, 2013, alleging breach of contract, breach of the covenant of good faith and fair dealing and seeking declaratory relief as result of Holiday’s alleged failure to meet its contractual obligations concerning the reservation system.”Page 32 of the 2024 FDD, Item 3

    Outcome: “Following a mediation, the parties resolved this matter with no admission of liability by either party and Holiday making a payment to Plaintiff of $10.9M.”

This list shows 15 of the 61 matters Item 3 discloses; the rest are in the filing.

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

  • Significant litigation portfolio including data security breaches, licensee disputes, non-payment actions, and territorial conflicts suggesting operational and legal risk

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?