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FranchiseVerdict

FDD Items 3 & 4 · 2026 filing

Studio 6 litigation history

What Studio 6 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
5
Item 3, as counted in the filing
Largest disclosed settlement
$12.0M
As stated in Item 3
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

Item 3 discloses 5 actions: (1) MS & Sons Hospitality v. G6 Hospitality LLC / G6 Hospitality Franchising LLC v. MS & Sons - cross-suits over termination for default, pending; (2) Azure Portfolio entities v. G6 Hospitality LLC and Accor Franchising North America - breach of franchise agreements and related claims, pending; (3) Park Property Management v. G6 Hospitality Franchising LLC - breach of contract/fraud claims, resolved in franchisor's favor through Utah Supreme Court; (4) MALDEF class action (Jane V. et al.) v. Motel 6 Operating, L.P. and G6 Hospitality LLC - alleged sharing of guest data with ICE, settled for $10,000,000 plus consent decree; (5) State of Washington v. Motel 6 Operating, L.P. and G6 Hospitality LLC - similar ICE data-sharing claims, settled for $12,000,000 plus consent decree.

Disclosure signals that moved the score

How this shows up in the verdict

  • No bankruptcy or going-concern

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?