FDD Items 3 & 4 · 2026 filing
Ruby Hotels litigation history
What Ruby 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
- 46
- Item 3, as counted in the filing
- Largest disclosed settlement
- Not extracted
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Holiday/IHG face numerous ongoing and historical franchisee disputes alleging breach of contract, wrongful termination, fraud, unreasonable renovation/PIP demands, kickbacks from suppliers, and class actions over franchise business practices (Sherman Act, state deceptive trade practices). Holiday also regularly sues terminated licensees for unpaid system fees and liquidated damages. Notable settlements include $10.9M paid to a Crowne Plaza licensee (Lenexa) and $699,000 to Hospitality Marketing Concepts. Most concluded matters resulted in no payment by Holiday or dismissal.
Disclosure signals that moved the score
How this shows up in the verdict
- 33 litigations but normal for IHG's massive system, parent-level
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?