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FDD Items 3 & 4 · 2026 filing

Microtel Inn & Suites by Wyndham litigation history

What Microtel Inn & Suites 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 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
15
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
2026
Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

No pending litigation against the Franchisor. Nine pending cases against parents/affiliates include Canadian class actions (price-fixing/hotel fee), franchisee breach cases, and extended stay antitrust litigation. One resolved case named MISF directly (New Mexico). One pending indemnification suit filed by MISF and affiliates against franchisees.

Item 3 (litigation) · 15 matters disclosed · 9 pending listed

Litigation cases

The franchisor

Concluded (1)

  • Presidential Hospitality, LLC, Ace Development, Inc. and Sam Blue v. Wyndham Hotel Group, LLC, Baymont Inn & Suites Franchise Systems, Inc. and Microtel Inn and Suites Franchising, Inc.

    settled

    Brought by a franchisee · filed 2017-09-12 · State of New Mexico, County of San Juan, Eleventh Judicial District Court (transferred to and consolidated with the NJ Action, U.S. District Court for the District of New Jersey) · D-1116-CV-2017-01329

    “… State of New Mexico, County of San Juan, Eleventh Judicial District Court, (Case D-1116-CV-2017-01329). Plaintiffs were parties to a license agreement and guaranty with Microtel Inn and Suites Franchising, Inc.”Page 24 of the 2026 FDD, Item 3

    Outcome: “In September 2018, plaintiffs agreed to settle both the New Jersey Action and the New Mexico Action, with payment to the Wyndham Entities, and both actions were dismissed with prejudice.”

Status not stated in the filing (1)

  • Wyndham Hotels & Resorts, Inc.; Microtel Inns & Suites Franchising, Inc.; and Days Inns Worldwide, Inc. v. Naniatma, LLC; Sudhir Modi; Shilpa Modi; Gita Hospitality, LLC; Anil Raman Parag; Ambe Maa, Inc.; Praful Patel; Shree Rama Inc.; Shobhanaben Topiwala (A/K/A Shobhna Topiwala); Sureshchandra Top

    Brought against a franchisee · filed 2025-10-16 · United States District Court for the District of New Jersey · 2:25-cv-16692

    “Litigation Against Franchisees Commenced in the Past Fiscal Year Litigation Against Franchisees for Indemnification: Caption Date Complaint Filed Court Docket Number Wyndham Hotels & Resorts, Inc.; Microtel Inns & Suites Franchising, Inc.; and Days Inns Worldwide, Inc. v. 10/16/2025 United States District Court 2:25-cv- 16692”Page 25 of the 2026 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (9)

  • Benoit v. Integrated Decision and Systems Inc. et al.

    pending

    Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. · filed 2026 · Cour Supérieure du Québec · 200-06-000274-251

    “… (Cour Supérieure du Québec, Case No. 200-06- 000274-251). In January 2026, Patrick Benoit filed a proposed class action against SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc., Choice Hotels International, Inc., Choice”Page 20 of the 2026 FDD, Item 3
  • Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.

    pending

    Brought by a franchisee · Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. · filed 2025-08-04 · Circuit Court of Chicot County, Arkansas, Civil Division · 09-cv-25-119

    “… (Circuit Court of Chicot County, Arkansas, Civil Division; Case No. 09-cv-25-119). On August 4, 2025,”Page 21 of the 2026 FDD, Item 3
  • Jantunen v. SAS Institute (Canada) Inc., et al.

    pending

    Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. · filed 2025-12-05 · Supreme Court of British Columbia · VLC-S-S-259245

    “… (Supreme Court of British Columbia, Case No. VLC-S-S- 259245). On December 5, 2025, Evelyn Jantunen and John Jantunen sued SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc., Accor S.A., APA Canada, Inc.,”Page 21 of the 2026 FDD, Item 3
  • Proulx et al. v. Orsini Bros. Inns Inc. et al.

    pending

    Wyndham Hotels & Resorts Canada, Inc. and Wyndham Hotels & Resorts, Inc. (amended to remove Wyndham Hotels & Resorts, Inc. and add Wyndham Hotel Group Canada, ULC) · filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00000000-00CP

    “… (Ontario Superior Court of Justice, CV-25-00000000-00CP). On July 8, 2025, plaintiffs Patrick Proulx, Gordon Vanwestern, Boris Susac, and John Martin filed a proposed class action against Carmelo Niagara Company LTD. (d/b/a Wyndham Fallsview Hotel), Wyndham Hotels”Page 21 of the 2026 FDD, Item 3
  • Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.

    pending

    Brought by a franchisee · Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. · filed 2025-12-02 · United States District Court, Central District of California · CV25-03815

    “… (United States District Court, Central District of California; Case No. CV25- 03815). On December 2, 2025, Plaintiffs filed suit against Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. (the “Wyndham Entities”) alleging that the Wyndham”Page 22 of the 2026 FDD, Item 3
  • Hanson Dai, et al. v. SAS Institute, Inc., et al.

    pending

    Wyndham Hotels & Resorts, Inc. · filed 2024-04-26 · United States District Court, Northern District of California · 4:24-cv-02537

    “… (United States District Court, Northern District of California, Case No. 4:24-cv-02537). On April 26, 2024, Plaintiffs Hanson Dai, Max Chiswick, Adolph Robles, Steven Stack, Matthew Gilbert, Michael Molinaro, Tony Qian, and Mark Lester (the “Original Plaintiffs”) filed a purported class action suit against SAS Institute, Inc., Integrated Decisions”Page 23 of the 2026 FDD, Item 3
  • In Re Extended Stay Hotel Antitrust Litigation

    pending

    Wyndham Hotels & Resorts, Inc. · filed 2024-07-24 · United States District Court, Northern District of California · 4:24- cv-09060-JSW

    “… (United States District Court, Northern District of California, Case No. 4:24- cv-09060-JSW). On July 24, 2024, Plaintiffs Andy Au, Karen Austin, Mignon Bacon, Sha-Quwana Boyd, Amanda Casnave, Charlotte Daniels, Trista McRae, Nadia Moreno, Andrew Rivers, Salimu Scott, Elizabeth Suriano, Matthias Will and Cynthia Wright (the “Original Plaintiffs”)”Page 22 of the 2026 FDD, Item 3
  • Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand

    pending

    Brought against a franchisee · Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc. and Baymont Franchise Systems, Inc. · filed 2024-05-16 · The Superior Court of New Jersey, Morris County · MRS-L-000977-24

    “… (The Superior Court of New Jersey, Morris County, Case No. MRS-L-000977-24). On May 16, 2024, as amended on November 14, 2024, Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc.,”Page 22 of the 2026 FDD, Item 3
  • Norma Knuth v. Wyndham Worldwide Corporation, et al.

    pending

    Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Days Inns Worldwide, Inc., Ramada Worldwide Inc., Super 8 Worldwide, Inc., Travelodge Hotels, Inc., and Wingate Inns International, Inc. · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014

    “… (Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina, QBG-2650/2014). On December 5, 2014, Plaintiff Norma Knuth filed a class action suit as a representative of all “persons, corporations, and entities, resident or situated in Canada . . . that paid a “Destination Marketing Fee” to a hotel in Canada owned, operated, or managed”Page 23 of the 2026 FDD, Item 3

Concluded (4)

  • Jay Brodsky v. Hilton Worldwide Inc., et al.

    settled

    Wyndham Hotels · filed 2018-08-20 · United States District Court for the District of New Jersey · 2:18-cv-13045-KM-JBC

    “… (United States District Court for the District of New Jersey, Case 2:18-cv-13045-KM-JBC). On August 20, 2018, plaintiff Jay Brodsky filed an individual lawsuit against numerous hotel industry companies, including “Wyndham Hotels” Plaintiff alleged a per se violation of the Sherman Antitrust Act (in the form of bid rigging and a group boycott),”Page 24 of the 2026 FDD, Item 3

    Outcome: “Defendants jointly settled for $7,000 payment ($1,400 as to Wyndham Hotels) to Mr. Brodsky on February 22, 2019, resulting in a dismissal of the action.” (page 25)

  • Thomas Luca, Jr. v. Wyndham Worldwide Corporation, et al.

    settled

    Wyndham Hotel Group, LLC and Wyndham Hotels and Resorts, LLC (Wyndham Worldwide Corporation and Wyndham Hotel Management, Inc. dismissed) · filed 2016-06-06 · United States District Court for the Western District of Pennsylvania · 2:16-cv-00746-MRH

    “… (United States District Court for the Western District of Pennsylvania, Case 2:16-cv-00746-MRH). On June 6, 2016, Plaintiff Thomas Luca, Jr. filed a class action lawsuit against defendants Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management, Inc. (the “Wyndham Entities”).”Page 24 of the 2026 FDD, Item 3

    Outcome: “Wyndham Hotel Group and Wyndham Hotels and Resorts, LLC entered into a settlement agreement with Plaintiff whereby a class was certified for settlement purposes and eligible class members will receive either $22 or 2,200 Wyndham Rewards points, and Wyndham will make certain display changes. The Court granted preliminary approval on October 18, 2019, and granted final approval on February 24, 2020.”

  • FTC v. Wyndham Worldwide Corporation, et al.

    dismissed

    Government or regulatory action · Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management, Inc. · filed 2012-06-26 · United States District Court for the District of New Jersey · 13-cv-1887 (ES)(JAD)

    “… (United States District Court for the District of New Jersey, Case No. 13-cv-1887 (ES)(JAD)). On June 26, 2012, the U.S. Federal Trade Commission (“FTC”) filed a lawsuit in Federal District Court for the District of Arizona against Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management,”Page 25 of the 2026 FDD, Item 3

    Outcome: “The parties settled the case by executing a Stipulated Order for Injunction, which does not hold the Wyndham Entities liable for any violations, nor require it to pay any monetary relief. The Court entered the Order and dismissed the case with prejudice on December 11, 2015.”

  • Joyce Roberts, individually and on behalf of classes of similarly situated individuals v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1- 10

    settled

    Brought by a third party · Wyndham International, Inc., Wyndham Worldwide Operations, Inc., and Wyndham Hotels and Resorts, LLC · filed 2012-07-17 · Superior Court of the State of California, County of Santa Cruz · RG 12639589

    “… (Superior Court of the State of California, County of Santa Cruz (RG 12639589). On July 17, 2012, a purported class action complaint was filed against Wyndham International, Inc., Wyndham Worldwide”Page 25 of the 2026 FDD, Item 3

    Outcome: “The parties reached a settlement before the class certification motion hearing took place, which had been scheduled for September 1, 2015, and thereafter executed a settlement agreement. The Court granted final approval of the settlement and entered an order on the same, dismissing the lawsuit, on October 27, 2016.”

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

  • Material litigation disclosed involving price-fixing, fee transparency, breach of contract, and data security—suggests franchisor governance and legal compliance concerns

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?