FDD Items 3 & 4 · 2026 filing
La Quinta by Wyndham litigation history
What La Quinta by Wyndham 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
- 13
- Item 3, as counted in the filing
- Largest disclosed settlement
- None stated
- 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
Multiple pending cases: (1) 2 suits against LQF for breach of contract/counterclaims by former franchisees; (2) 3 suits by LQF against terminated franchisees for unpaid fees; (3) 8 suits involving WHR/parent affiliates for price-fixing (hotel revenue management software antitrust class actions), resort/destination marketing fee claims, and cybersecurity/consumer fraud. Several resolved cases disclosed including FTC settlement (2015), class action resort fee settlement (2020).
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigations including franchisor breach of contract suits against franchisees, antitrust/price-fixing class actions, and consumer protection class actions signal systemic disputes
- FTC settlement for cybersecurity failures raises data protection and consumer trust concerns in hospitality sector
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?