FDD Items 3 & 4 · 2022 filing
Radisson RED litigation history
What Radisson RED disclosed about lawsuits, arbitrations and bankruptcy in the 2022 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
- 6
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2022
- Disclosures cover the prior ten years
Extracted from the 2022 Franchise Disclosure Document
Item 3: litigation
No litigation required to be disclosed for the Radisson RED brand specifically. Disclosed cases relate to the Radisson brand: (1) Radisson v. AIL Hospitality, LLC & Ailawadi (D. Minn., breach of license/guaranty; counterclaims); (2) Norma Knuth v. Radisson et al. (Saskatchewan class action re destination marketing fees); (3) Radisson v. 205 Wolf Holdings/Inner Circle Licensees (D. Minn./Hennepin Cty., breach of license/global settlement; counterclaims; some defendants in Ch.11); plus 3 Radisson-initiated collection actions in the last fiscal year (Ronit Hospitality; Rochester Airport Hospitality; iBorrow 2945 OKC Owner).
Item 3 (litigation) · 6 matters disclosed
Litigation cases
The franchisor
Concluded (1)
Norma Knuth v. Radisson Hotels International, Inc., et al.
judgmentBrought by a third party · filed 2014-12-05 · Court of Queen's Bench for Saskatchewan · QBG No. 2560 of 2014
“… (Court of Queen’s Bench for Saskatchewan, Court File No. QBG No. 2560 of 2014).”Page 19 of the 2022 FDD, Item 3
Status not stated in the filing (5)
Radisson Hotels International, Inc. v. AIL Hospitality, LLC and Pushpa Ailawadi
Brought against a franchisee · filed 2021-11-15 · U.S. District Court for the District of Minnesota · 21-cv-2497 (NEB/JFD)
“… United States District Court for the District of Minnesota, Case No. 21-cv-2497 (NEB/JFD), filed on November 15, 2021.”Page 19 of the 2022 FDD, Item 3
Radisson Hotels International, Inc. v. Rochester Airport Hospitality, LLC
Brought against a franchisee · filed 2021-06-15 · U.S. District Court for the District of Minnesota · 21-cv-01409-MJD-KMM
“… United States District Court for the District of Minnesota, Case No. 21-cv-01409-MJD-KMM, filed on June 15, 2021.”Page 20 of the 2022 FDD, Item 3
Radisson Hotels International, Inc. v. Ronit Hospitality, LLC and Meera Inc.
Brought against a franchisee · filed 2021-06-16 · U.S. District Court for the District of Minnesota · 21-cv-01414-WMW-BRT
“… United States District Court for the District of Minnesota, Case No. 21-cv-01414-WMW-BRT, filed on June 16, 2021.”Page 20 of the 2022 FDD, Item 3
Radisson Hotels International, Inc. v. iBorrow 2945 OKC Owner, LLC and iBorrow Finance Loan Fund I, LP
Brought against a franchisee · filed 2021-10-13 · Minnesota District Court · 27-CV-21-12371
“… Minnesota District Court, Case No. 27-CV-21-12371, filed on October 13, 2021.”Page 20 of the 2022 FDD, Item 3
Radisson Hotels International, Inc. v. 205 Wolf Holdings, LLC; 205 Wolf Land, LLC; Appleton Holdings, LLC; Appleton Land,; 204 Fox Holdings, LLC; 204 Fox Land, LLC; 5500 Midland Holdings, LLC; 5500 Midland Land, LLC; 100 Berlin Holdings, LLC; 100 Berlin Land, LLC; 50 Morgan Hospitality Group, LLC; M
Brought against a franchisee · filed 2018-03-12 · Fourth Judicial District, Hennepin County, Minnesota · 27-CV-18-4230
“Radisson Hotels International, Inc. v. 205 Wolf Holdings, LLC; 205 Wolf Land, LLC; Appleton Holdings, LLC; Appleton Land,; 204 Fox Holdings, LLC; 204 Fox Land, LLC; 5500 Midland Holdings, LLC; 5500 Midland Land, LLC; 100 Berlin Holdings, LLC; 100 Berlin Land, LLC; 50 Morgan Hospitality Group, LLC;”Page 19 of the 2022 FDD, Item 3
Outcome: “The case has been placed on the inactive docket while the parties decide whether to continue the case in light of the bankruptcy filing.” (page 20)
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosure signals that moved the score
How this shows up in the verdict
- Active litigation across multiple categories (breach, class action, fee disputes) suggests systemic franchisor-franchisee conflict
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?