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?