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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?