Skip to main content
FranchiseVerdict

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.

    judgment

    Brought 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?