FDD Items 3 & 4 · 2023 filing
Tapestry Collection by Hilton litigation history
What Tapestry Collection by Hilton disclosed about lawsuits, arbitrations and bankruptcy in the 2023 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
- 8
- Item 3, as counted in the filing
- Largest disclosed settlement
- $75.0M
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2023
- Disclosures cover the prior ten years
Extracted from the 2023 Franchise Disclosure Document
Item 3: litigation
Five cases disclosed: (1) State of Nebraska v. Hilton - pending government action alleging improper disclosure of mandatory guest fees, trial scheduled 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchisee breach of contract suit regarding franchise termination for false records, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded, settled July 2022, involved franchise termination and counterclaims for fraudulent inducement; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded, settled September 2020, wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action, incomplete information provided
Disclosure signals that moved the score
How this shows up in the verdict
- 8 litigation matters but routine for a large Hilton system
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?