FDD Items 3 & 4 · 2023 filing
Tru by Hilton litigation history
What Tru 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
- None stated
- 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
Four litigation matters disclosed: (1) Pending - State of Nebraska v. Hilton Domestic Operating Company Inc. - consumer protection action regarding mandatory guest fees disclosure (trial scheduled 2023); (2) Pending - Destin Platinum LLC v. Hampton Inns Franchise LLC - breach of contract franchisee suit (not yet served); (3) Concluded - Hilton Franchise Holding LLC v. Portland Hotel Ownership et al. - franchisor breach of contract suit against franchisee, settled July 28, 2022; (4) Concluded - San Pedro Inn, LP v. Hilton Franchise Holding LLC - wrongful termination under New Jersey Franchise Practices Act, settled September 25, 2020. One additional class action case (Kathleen Soule) referenced but incomplete in provided text.
Disclosure signals that moved the score
How this shows up in the verdict
- 6 litigation matters but routine and immaterial for a Hilton-scale franchisor
- Clean: no bankruptcy, no going-concern, audited, Item 19 present
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?