FDD Items 3 & 4 · 2024 filing
Radisson Individuals litigation history
What Radisson Individuals 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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 95
- Item 3, as counted in the filing
- Largest disclosed settlement
- 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
3 pending matters disclosed: (1) a Canadian class action (Norma Knuth) alleging wrongful collection of destination marketing fees, seeking $403M in restitution/damages, class not yet certified; (2) a RICO/antitrust suit by ~90 current/former Choice franchise owners (Jai Sai Baba v. Choice) stayed pending arbitration, with a related arbitration (Choice v. DIP Hospitality) awaiting an award; (3) a breach of contract/trade secrets suit by a Country Inn & Suites licensee (T&T Management) regarding brand protection and guest data, motions pending. Additionally, dozens of routine actions to collect unpaid royalties/debts from franchisees and one IP enforcement action. 4 resolved matters in the prior years, including a $740,072 arbitration award against Choice (Highmark Lodging) and a $603,483 award in favor of Choice (Dahya Investments).
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?