FDD Items 3 & 4 · 2025 filing
Project Q by Hilton litigation history
What Project Q by Hilton 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 11
- 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
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Hilton is involved in 6 litigations: (1) AAAA Property Partners LLC v. Hilton Franchise Holding LLC - franchise termination dispute in M.D. Fla.; (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - Sherman Act class action alleging improper rate-setting through IDeaS; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - Sherman Act class action alleging improper rate-setting through Amadeus; motion to dismiss granted on March 31, 2025, third amended complaint filed April 28, 2025; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - Sherman Act class action alleging improper rate-setting through STR data exchange. Primary themes: one franchise termination dispute and four antitrust class actions involving alleged improper data sharing and rate-setting.
Disclosure signals that moved the score
How this shows up in the verdict
- 9 litigation cases incl. 3 antitrust class actions, routine for a global hotel franchisor
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?