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FDD Items 3 & 4 · 2024 filing

Travelodge By Wyndham litigation history

What Travelodge By Wyndham disclosed about lawsuits, arbitrations and bankruptcy in the 2024 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
15
Item 3, as counted in the filing
Largest disclosed settlement
Not extracted
Bankruptcy (Item 4)
None
Franchisor, parent, predecessor or officer
Filing year
2024
Disclosures cover the prior ten years

Extracted from the 2024 Franchise Disclosure Document

Item 3: litigation

Item 3 discloses: (1) Pending against franchisor: Knuth class action (Canada, Destination Marketing Fee, $403M restitution sought). (2) Pending against parents/affiliates: Au and Dai antitrust class actions re IDeaS revenue-management software (Sherman Act). (3) Resolved against franchisor: Devayatan (negligent misrepresentation; THI won $530,000 settlement) and Pooniwala (Minnesota Franchise Act; settled $220,000). (4) Resolved against parents/affiliates: Luca (resort fees), Brodsky (antitrust, settled), Roberts and Stone (call-recording privacy, settled), FTC v. Wyndham (data-security), and FFC Capital (breach of contract, settled $260,000). (5) Litigation against terminated franchisees for non-payment commenced in past fiscal year: Travelodge Hotels, Inc. as plaintiff v. Mantera Equity, Jiaan Hospitality, and Dream Land Hospitality.

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?