FDD Items 3 & 4 · 2025 filing
Red Roof Inn litigation history
What Red Roof Inn disclosed about lawsuits, arbitrations and bankruptcy in the 2025 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
- 4
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
HP Holding LLC and HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC (pending) - Former franchisee alleging breach of franchise agreement, tortious interference, and NJFPA violations. State of Maryland v. Red Roof Franchising, LLC (concluded) - Maryland Securities Commissioner inquiry into franchise activities.
Item 3 (litigation) · 4 matters disclosed · 1 pending listed
Litigation cases
The franchisor
Pending (1)
HP Holding LLC and HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC
pendingBrought by a franchisee · filed 2023-10-05 · U.S. District Court for the District of New Jersey · 23-cv-20907-RMB-MJS
“… Civil Action No. 23-cv-20907-RMB-MJS (United States District Court for the District of New Jersey).”Page 13 of the 2025 FDD, Item 3
Concluded (1)
State of Maryland v. Red Roof Franchising, LLC
concludedGovernment or regulatory action · filed 2014-09-24 · Securities Commissioner of Maryland · 2014-0330
“… No. 2014-0330 (Securities Commissioner of Maryland, September 24, 2014) As of September 24, 2014 the Securities Division of the Office of the Attorney General of Maryland (the “Securities Division”) initiated an”Page 14 of the 2025 FDD, Item 3
Status not stated in the filing (2)
Red Roof Franchising, LLC v. Channelview Welcome Hospitality LLC et al
Brought against a franchisee · filed 2024 · Harris County District Court, Texas · 202441051
“… Case No. 202441051 (Harris County District Court, Texas).”Page 15 of the 2025 FDD, Item 3
Red Roof Franchising, LLC v. Janam Madison Lodging LLC et al
Brought against a franchisee · filed 2024 · State Court of Rockdale County, Georgia · 2024-SV-2277
“… Case No. 2024-SV-2277 (State Court of Rockdale County, Georgia).”Page 15 of the 2025 FDD, Item 3
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.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
In re ASTECH Engineered Products, Inc. (n/k/a AEP Legacy, Inc.), Case No. 22-10635-BLS (Bankr. Del.). Chapter 11 petition filed July 15, 2022. Plan of liquidation confirmed May 20, 2024.
Disclosure signals that moved the score
How this shows up in the verdict
- Bankruptcy is a prior-employer matter of an officer (ASTECH, Chapter 11 2022) — not the franchisor
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?