FDD Items 3 & 4 · 2026 filing
Sonesta Simply Suites litigation history
What Sonesta Simply Suites 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 22
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- Not extracted
- Bankruptcy (Item 4)
- Disclosed · an officer
- Franchisor, parent, predecessor or officer
- Filing year
- 2026
- Disclosures cover the prior ten years
Extracted from the 2026 Franchise Disclosure Document
Item 3: litigation
Includes 8 concluded merger-related stockholder suits (settled, $240,000 in attorneys' fees paid), several concluded lawsuits with former franchisees/guarantors and a competitor (settlements ranging $10,500 to $500,000), and 6 pending suits filed by SRLHF against former franchisees/guarantors to collect unpaid amounts and liquidated damages.
Disclosed in the 2026 Franchise Disclosure Document
Item 4: bankruptcy
In re: Office Properties Income Trust, et al., Bankruptcy Petition: 25-90530 (United States Bankruptcy Court of Texas (Houston)). On October 30, 2025, Office Properties Income Trust and certain of its subsidiaries (“Debtors”), entities for which certain of our officers and directors have management responsibility, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.
Disclosure signals that moved the score
How this shows up in the verdict
- litigation_count=20, 6 pending
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?