FDD Items 3 & 4 · 2026 filing
Red Lion Hotels litigation history
What Red Lion Hotels disclosed about lawsuits, arbitrations and bankruptcy in the 2026 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
- 23
- Item 3, as counted in the filing
- Largest disclosed settlement
- $500K
- As stated in Item 3
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Item 3 discloses 8 concluded stockholder lawsuits (2021) challenging RLHC/Sonesta merger proxy disclosures (settled, $240,000 in plaintiffs' fees paid); several concluded commercial suits including Radisson Hotels v. RLHC/SRLHF (tortious interference, settled $500,000), RLHF v. Polselli, Chu v. RLHF, RLHF v. Khan (2 related suits, settled $500,000), RLHF v. Vemulapalli ($80,000), RLHF v. Minnesota Hospitality ($150,000), RLHC v. Tiya Hospitality ($10,500), RLHF v. JS Three Star ($81,000 counterclaim); and 6 pending 2025 suits by Sonesta RL Hotels Franchising Inc. against former franchisees/guarantors to collect unpaid amounts (Bliss Investment, SIGMM, MSDS MGT, Gonzales WS Hospitality, Pardeshi LLC, Grain Valley Hospitality).
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
Office Properties Income Trust and certain subsidiaries (entities for which certain of the franchisor's officers/directors have management responsibility) filed Chapter 11 bankruptcy petition (No. 25-90530) on October 30, 2025 in the U.S. Bankruptcy Court of Texas (Houston).
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?