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FDD Items 3 & 4 · 2026 filing

Surestay litigation history

What Surestay 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
27
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$165K
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 2 concluded cases involving SureStay directly (franchisee suits for wrongful termination, settled for $125,000 and $165,000) and numerous cases involving parent Best Western International, including franchisee/member counterclaims for wrongful termination and breach of contract, several state regulatory consent orders/settlements for unregistered franchise/membership offerings (California $500,000, Maryland $297,000 penalty, Virginia, Washington), and multiple 2025 fee-collection suits BWI initiated against terminated members.

Item 3 (litigation) · 27 matters disclosed

Litigation cases

The franchisor

Concluded (2)

  • Ma-Krupa v. SureStay, Inc.

    settled

    Brought by a franchisee · filed 2020-12-11 · Arizona Superior Court, Maricopa County · CV 2020- 016356

    “… Arizona State Court (Maricopa County) Case No. CV 2020- 016356 (Filed December 11, 2020). On December 12, 2017, Ma-Krupa executed a Franchise Agreement for a SureStay location in Kansas City.”Page 13 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that SureStay would pay Ma-Krupa $165,000, plus forgive Ma-Krupa’s past due account balance of approximately $38,500.”

  • Royal Hospitality Group, Inc. v. SureStay, Inc.

    settled

    Brought by a franchisee · filed 2019-06-14 · Arizona Superior Court, Maricopa County · CV 2019-009981

    “… Arizona State Court (Maricopa County) Case No. CV 2019-009981 (Filed June 14, 2019).”Page 12 of the 2026 FDD, Item 3

    Outcome: “the parties agreed to settle the case, with the parties agreeing that we would pay Royal $125,000.”

Parent, affiliates, master franchisor and subfranchisor

Concluded (17)

  • Best Western International, Inc. v. 1025 Beach LLC, Joga Sing Hayre, et al.

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2022-10-05 · U.S. District Court for the District of Arizona · 2:22-cv-01696-CDB

    “… Arizona District Court Case No. 2:22-cv-01696-CDB (Filed October 5, 2022;”Page 13 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Far Rockaway Former Member would pay Best Western International $160,000 in installment payments over 18 months.”

  • Best Western International, Inc. v. 1Nonly Phi Mar, LLC, Philip Levine, et al.

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2022-03-21 · U.S. District Court for the District of Arizona · 2:22-cv-00440-MTL

    “… Arizona District Court Case No. 2:22-cv-00440-MTL (Filed March 21, 2022;”Page 14 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Dallas Former Member would pay Best Western International $223,000 in installment payments over 13 months.”

  • Best Western International, Inc. v. Brookfield Ventures, LLC, et al.

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2022-01-10 · U.S. District Court for the District of Arizona · 2:22-cv-00037-JAT

    “… Arizona District Court Case No. 2:22-cv-00037-JAT (Filed January 10, 2022;”Page 13 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Milwaukee-Brookfield Former Member would pay Best Western International $25,000. Best Western International, Inc. v. 1Nonly Phi Mar, LLC, Philip Levine, et al., Arizona District Court Case No. 2:22-cv-00440-MTL (Filed March 21, 2022;” (page 14)

  • Best Western International, Inc. v. 764 4th Avenue Associates, LLC

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2020-09-08 · U.S. District Court for the District of Arizona · 2:20-cv-01760

    “… Arizona District Court Case No. 2:20-cv-01760 (Filed September 8, 2020;”Page 14 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Hotel would pay Best Western International $250,000 in installment payments over 24 months. Best Western International, Inc. v. Twin City Lodging, LLC, et al., Arizona District Court Case No. 18-cv-03374-SPL (Filed October 19, 2018).”

  • In the Matter of Best Western International, Inc.

    settled

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 2020-02-24 · Virginia State Corporation Commission, Division of Securities and Retail Franchising · SEC-2019-00060

    “… Virginia Corporation Commission’s Division of Securities and Retail Franchising, Case No. SEC-2019-00060 (Effective February 24, 2020).”Page 19 of the 2026 FDD, Item 3

  • In the Matter of Best Western International, Inc.

    concluded

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 2019-04-09 · California Department of Business Oversight · FIL ORG ID.: 102063

    “… Department of Business Oversight of the State of California, FIL ORG ID.: 102063 (Effective April 9, 2019).”Page 19 of the 2026 FDD, Item 3

  • In the Matter of Best Western International, Inc.

    concluded

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 2019-02-07 · Washington Department of Financial Institutions, Securities Division · S-18-2510-19-CO01

    “… Securities Division of Department of Financial Institutions of Washington, Order No. S-18-2510-19-CO01 (Effective February 7, 2019).”Page 19 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. Twin City Lodging, LLC, et al.

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2018-10-19 · U.S. District Court for the District of Arizona · 18-cv-03374-SPL

    “… Arizona District Court Case No. 18-cv-03374-SPL (Filed October 19, 2018).”Page 14 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Mankato Former Hotel would pay Best Western International $66,250. Best Western International, Inc. v. Oakland Park, Inc., et al., Arizona State Court (Maricopa County) Case No. CV 2015-000279 (Filed December 12, 2016, Appellate Ruling December 6, 2018).” (page 15)

  • In the Matter of Best Western International, Inc.

    concluded

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 2018-08-24 · Securities Division of the Office of the Attorney General of Maryland · 2018-0237

    “… Securities Division of the Office of the Attorney General of Maryland, Case No. 2018-0237 (Effective August 24, 2018).”Page 18 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. American Hospitality Solution, LLC and Deborah Speziale

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2016-10-06 · U.S. District Court for the District of Arizona · 2:16-cv-03405

    “… Arizona District Court Case No. 2:16-cv-03405 (Filed October 6, 2016).”Page 17 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Crossroads Former Hotel would pay Best Western International $35,000. Quist v. Best Western International, Inc., Supreme Court of North Dakota, Civ.”

  • Best Western International, Inc. v. Oakland Park, Inc., et al.

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2016-12-12 · Arizona Superior Court, Maricopa County · CV 2015-000279

    “… Arizona State Court (Maricopa County) Case No. CV 2015-000279 (Filed December 12, 2016, Appellate Ruling December 6, 2018).”Page 15 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Fort Lauderdale Former Hotel would pay Best Western International $225,000. Bright LLC v. Best Western International, Inc., Arizona District Court Case No. 17-cv-00463- PHX-ROS (Filed July 8, 2016).”

  • Best Western International, Inc. v. Upstate Host, LLC and Tarrunumn Murad

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2016-03-31 · U.S. District Court for the District of Arizona · 2:16-cv-00885 (PGR)

    “… Arizona District Court Case No. 2:16-cv-00885 (PGR) (Filed March 31, 2016).”Page 17 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Syracuse Former Hotel would pay Best Western International $78,000 in 24 equal monthly payments of $3,250.”

  • Bright LLC v. Best Western International, Inc.

    settled

    Best Western International, Inc. (our parent) · filed 2016-07-08 · U.S. District Court for the District of Arizona · 17-cv-00463- PHX-ROS

    “… Arizona District Court Case No. 17-cv-00463- PHX-ROS (Filed July 8, 2016).”Page 15 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Former Applicant would pay Best Western International $114,000. State Bank of Texas, SBT I-10 Service Rd., Ft.” (page 16)

  • Best Western International, Inc. v. SDV Hospitality and Resources Corporation and Deepak Kant Vyas

    settled

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2015-10-27 · U.S. District Court for the District of Arizona · 2:15-cv-02159

    “… Arizona District Court Case No. 2:15-cv-02159 (Filed October 27, 2015).”Page 16 of the 2026 FDD, Item 3

    Outcome: “On July 26, 2017, the parties settled the case with mutual releases of all claims per a confidential settlement agreement, the disclosure of which is only allowed if required by applicable law or court order.”

  • State Bank of Texas, SBT I-10 Service Rd., Ft. Worth Hotel South, LLC v. Best Western International, Inc.

    settled

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 2015-11-20 · Arizona Superior Court, Maricopa County · CV 2015-008670

    “… Arizona State Court (Maricopa County) Case No. CV 2015-008670 (Filed November 20, 2015).”Page 16 of the 2026 FDD, Item 3

    Outcome: “The parties agreed that the Fort Worth Former Hotel would pay Best Western International $25,000. Best Western International, Inc. v. SDV Hospitality and Resources Corporation and Deepak Kant Vyas, Arizona District Court Case No. 2:15-cv-02159 (Filed October 27, 2015).”

  • Commissioner of Corporations v. Best Western International, Inc.

    judgment

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 1988-07-29 · Superior Court of the State of California for the County of Los Angeles · 0693928

    “… Superior Court of the State of California for the County of Los Angeles, Case No. 0693928 (Filed July 29, 1988).”Page 18 of the 2026 FDD, Item 3

  • Quist v. Best Western International, Inc.

    concluded

    Government or regulatory action · Best Western International, Inc. (our parent) · filed 1984-07-18 · Supreme Court of North Dakota · Civ. Case No. 10571

    “… Supreme Court of North Dakota, Civ. Case No. 10571 (Filed July 18, 1984). On March 3, 1983, the North Dakota Securities Commissioner held that (i) the agreements between Best Western International and its Members were “franchises” as defined in the North Dakota Franchise Investment Law (“FIL”);”Page 17 of the 2026 FDD, Item 3

Status not stated in the filing (8)

  • Best Western International, Inc. v. Anderson Hospitality, LLC Ankit Panchal, and Nikita Panchal

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-08-22 · U.S. District Court for the District of Arizona · 2:25-cv-03077-MTM

    “… Arizona District Court Case No. 2:25-cv-03077-MTM (Filed August 22, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. GVR Holding LTD, Gurkamal Kullar, and Jane Doe Kullar

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-08-22 · Arizona Superior Court, Maricopa County · CV2025-030257

    “… Arizona Superior Court, Maricopa County Case No. CV2025-030257 (Filed August 22, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. Hari Krupa, LLC, Pranav Halvawala, and Jane Doe Halvawala

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-11-10 · Arizona Superior Court, Maricopa County · CV2025-061393

    “… Arizona Superior Court, Maricopa County Case No. CV2025-061393 (Filed November 10, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. Hriday Hospitality, LLC, Jigar Desai, and Tanvi Desai

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-11-12 · Arizona Superior Court, Maricopa County · CV2025-062934

    “… Arizona Superior Court, Maricopa County Case No. CV2025-062934 (Filed November 12, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. Satguru Nanak Ji, LLC, Taranjit Singh, and Jane Doe Singh

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-08-25 · U.S. District Court for the District of Arizona · 2:25-CV-03086-DGC

    “… Arizona District Court Case No. 2:25-CV-03086-DGC (Filed August 25, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. Supreme International Hotels, Inc., Shakeel Syed, and Sama Amrin

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-02-12 · Arizona Superior Court, Maricopa County · CV2025-005555

    “… Arizona Superior Court, Maricopa County Case No. CV2025-005555 (Filed February 12, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. VD Patel Family Company, LLC, Ashik Patel, and Trisha Patel

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-04-02 · Arizona Superior Court, Maricopa County · CV2025-011764

    “… Arizona Superior Court, Maricopa County Case No. CV2025-011764 (Filed April 2, 2025).”Page 20 of the 2026 FDD, Item 3

  • Best Western International, Inc. v. VED Enterprises Inc. Aksha Amin, and Jane Doe Amin

    Brought by the franchisor · Best Western International, Inc. (our parent) · filed 2025-08-22 · Arizona Superior Court, Maricopa County · CV2025-030228

    “… Arizona Superior Court, Maricopa County, Case No. CV2025-030228 (Filed August 22, 2025).”Page 20 of the 2026 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.

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?
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