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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

Magnuson Grand® or Magnuson Hotels® litigation history

What Magnuson Grand® or Magnuson Hotels® disclosed about lawsuits, arbitrations and bankruptcy in the 2025 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
1
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
2025
Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

Washington DFI consent order against Magnuson Company (parent) for selling franchises without providing FDD or registering; order required payment of $2,500 investigative costs and cease and desist.

Item 3 (litigation) · 1 matter disclosed

Litigation cases

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

  • In the Matter of Determining Whether There Has Been a Violation of the Franchise Investment Protection Act of Washington by Magnuson Company, L.L.C.

    concluded

    Government or regulatory action · Magnuson Company, L.L.C. · filed 2020-11-10 · Washington Department of Financial Institutions · S-20-2917-20-CO01

    “… Order No. S-20-2917-20-CO01, November 10, 2020.”Page 10 of the 2025 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.

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?