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.
concludedGovernment 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?