FDD Items 3 & 4 · 2026 filing
Outset Collection by Hilton litigation history
What Outset Collection by Hilton 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
- 15
- Item 3, as counted in the filing
- Largest disclosed settlement
- $2.1M
- As stated in Item 3
- 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
5 pending actions (including antitrust class actions re hotel pricing algorithms via IDeaS/Amadeus/STR and a franchise termination dispute); 6 concluded actions (2 state AG consumer protection settlements re resort fees, 2 franchise breach/collection suits, 1 antitrust consent decree from 1970, 1 franchisee counterclaim settled); 4 collection suits filed by franchisor against former franchisees in 2025-2026
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigations including breach of contract, antitrust claims, and consumer protection settlements indicate systemic operational and legal issues
- Pending antitrust and revenue management software litigation suggests franchisor practices may harm franchisee profitability
- Going Concern status = False (unclear statement) but 2-unit system with litigation raises solvency questions
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?