FDD Items 3 & 4 · 2024 filing
Radisson Hotels litigation history
What Radisson Hotels disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
- 57
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- Not extracted
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2024
- Disclosures cover the prior ten years
Extracted from the 2024 Franchise Disclosure Document
Item 3: litigation
Multiple pending matters including a Canadian class action re: destination marketing fees ($403M demanded), a multi-plaintiff RICO/antitrust suit by ~90 franchise owners (stayed, compelled to arbitration), and a breach-of-contract/trade-secrets suit by a Country Inn & Suites licensee. A large number (~48) of arbitration/court actions initiated by Choice against franchisees to recover unpaid royalties and other debts in the prior fiscal year. Resolved matters include a $779,398 final judgment against Choice (Highmark Lodging arbitration) and an $85,000 settlement paid by Choice (Sender Kohl).
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?