FDD Items 3 & 4 · 2024 filing
Vignette Collection litigation history
What Vignette Collection 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 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 60
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- $10.9M
- As stated in Item 3
- 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
No litigation relates solely to the Vignette Collection brand. Item 3 discloses numerous suits involving Holiday/SCH across all IHG brands, including breach-of-contract/liquidated-damages actions against terminated licensees, a consolidated multi-state class action (Park 80 Hotels et al.) alleging improper kickbacks and unreasonable vendor requirements, a data-breach class action (Park 80 Hotels v. Holiday/SCH/IHG Technology Solutions), and several arbitration/international disputes with former licensees.
Item 3 (litigation) · 60 matters disclosed · 11 pending listed
Litigation cases
The franchisor
Pending (9)
Holiday Hospitality Franchising, LLC v. Momentum Fort Worth Investment LLC, Abdul Majid Hassanally and Shahnaz Majid Hassanally
pendingBrought against a franchisee · filed 2024 · State Court of DeKalb County, Georgia · Civ. Action No. 24A00417
“Holiday filed this suit against the defendants seeking liquidated damages, unpaid franchise fees, and other amounts exceeding $1.5 million arising from defendants alleged breach of a Holiday Inn license agreement and Holiday’s subsequent termination of the license related thereto.”Page 20 of the 2024 FDD, Item 3
Outcome: “Holiday believes its claims are meritorious, the Defendants’ counterclaims and defenses are not, and Holiday is prosecuting its case and defending against the counterclaims vigorously.”
Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC, Surati Investment, LLC, Raiyan Rab, Numarix Real Estate Services, LLC, Mark Wolfe, Equity Central Realty, LLC
pendingBrought by a franchisee · filed 2023-07-17 · Court of Common Pleas, Lucas County, Ohio · Case No. G-4801-CI-0202303085-000
“Plaintiffs claim that, in connection with the sale process related to the Hotel, they were misled into believing the scope of work required by the change of ownership license agreement for the hotel would be lighter in scope and less expensive than what it turned out to be.”Page 21 of the 2024 FDD, Item 3
Outcome: “Appellate briefing is ongoing and the appeal remains pending.”
Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2023-10-31 · DeKalb County, Georgia Superior Court · Civ. Action No. 23-CV-9509
“The amended petition alleges that Holiday made certain misrepresentations to plaintiffs in advance of the execution of the license agreement but asserted no claim for damages. The amended petition seeks a declaratory judgment finding that Holiday’s license agreement is unconscionable and unenforceable, that the liquidated damages clause is an unenforceable penalty, and that the defendants are not”Page 21 of the 2024 FDD, Item 3
Outcome: “Holiday believes the plaintiff’s summary judgment motion has no merit and will file its own summary judgment motion at the appropriate time.”
Park 80 Hotels, LLC, PL Hotels, LLC, Mayur Patel, JSK Exton LLC, Jay Z. Kuber Hospitality, Inc., Parmattma Corporation and Synergy Hotels, LLC, individually and on behalf of all others similarly situated v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental H
pendingBrought by a franchisee · filed 2022 · N.D.Ga. · Case 1:22-cv-03709-LMM
“The putative class action lawsuit brought on behalf of putative classes of Holiday licensees relates to an unauthorized access to certain of IHG’s systems by third party bad actors that resulted in a temporary disruption of certain services which plaintiffs allege had a negative impact on their businesses.”Page 23 of the 2024 FDD, Item 3
Outcome: “Holiday, SCH and IHG Technology Solutions, LLC believe the allegations to be meritless and are defending vigorously.”
TJM Columbus, LLC d/b/a Crowne Plaza-Columbus North and TJM Syracuse, LLC d/b/a Crowne Plaza Syracuse v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a InterContinental Hotels Group
pendingBrought by a franchisee · filed 2022-05-23 · DeKalb County, Georgia Superior Court (removed twice to N.D. Ga., 1:22-cv-2541-VMC and 1:24-cv-00055-VMC; remanded) · Civ. Action No. 22-cv-5181
“Plaintiffs are Crowne Plaza® licensees (for the Crowne Plaza® Columbus North – Worthington and the Crowne Plaza® Syracuse, respectively). Plaintiffs assert a breach of contract claim against Holiday and SCH related to a proposed sale of the subject hotels to a developer that intended to convert the subject hotels out of the Crowne Plaza® system.”Page 23 of the 2024 FDD, Item 3
Outcome: “Holiday and SCH filed a renewed motion for summary judgment on all claims on May 23, 2024, which remains pending.” (page 24)
Park 80 Hotels LLC, a Louisiana limited liability company, PL Hotels, LLC, a Louisiana limited liability company, individually, and on behalf of a class of similarly situated individuals and entities v. Holiday Hospitality Franchising, LLC, Six Continents Hotels, Inc. D/b/a Intercontinental Hotels G
pendingBrought by a franchisee · filed 2021-05-19 · United States District Court, Northern District of Georgia (consolidated; lead case filed in E.D. La.) · Civil Action No. 1:21-cv-04650-ELR (consolidated)
“Each of the lawsuits allege that Holiday and SCH engages in unlawful and otherwise improper franchise business practices, including, imposing unreasonable products, services and requirements and receiving improper kickbacks from required purchases.”Page 24 of the 2024 FDD, Item 3
Outcome: “On March 13, 2024, Holiday and SCH filed their opposition to class certification and a motion to exclude Plaintiffs’ expert, and Plaintiffs filed a response to Holiday and SCH’s summary judgment motion. Both motions remain pending.” (page 25)
Scion Hotels LLC vs. Holiday Hospitality Franchising, LLC
pendingBrought by a franchisee · filed 2021-02-18 · D.N.J · Case No. 2:21-cv-02276-MCA-MAH
“Scion Hotels LLC (“Scion”), a New Jersey licensee of a Holiday Inn hotel, filed a civil complaint against Holiday to obtain damages for violation of the New Jersey Franchise Practices Act in allegedly wrongfully imposing unreasonable standards of performance upon Scion and then wrongfully refusing to renew its license agreement.”Page 21 of the 2024 FDD, Item 3
Outcome: “The parties have completed fact and expert discovery, and Holiday filed a motion for summary judgment on all claims on April 28, 2023, which has been fully briefed, and the parties are awaiting the Court’s ruling.” (page 22)
Holiday Hospitality Franchising, LLC v. Niranjan Khatiwala, Nimesh D. Vesuwala and Mayur N. Khatiwala
pendingBrought against a franchisee · filed 2020-12-11 · State Court of Dekalb County, Georgia (transferred to Superior Court of DeKalb County, Civil Action No. 22CV4560) · Civil Action File No. 20A83898
“On December 11, 2020, Holiday filed a lawsuit against the defendants seeking liquidated damages and unpaid system fees owed under a Crowne Plaza® license agreement that Holiday terminated as a result of the licensee’s failure to pay amounts owed to Holiday under the agreement.”Page 25 of the 2024 FDD, Item 3
Outcome: “The case is currently pending in the Superior Court of DeKalb County, Georgia under Civil Action No. 22CV4560.” (page 26)
Astoria Enterprises Ltd. v. Holiday Hospitality Franchising, Inc. and InterContinental Hotels Group PLC
pendingBrought by a franchisee · filed 2007-12-21 · The Queen’s Bench Winnipeg Centre · File No. CI-07-01-54936
“On December 21, 2007, Astoria Enterprises (“Astoria”), a former Licensee, filed suit against Holiday demanding $541,000 in damages for failing to renew or extend an existing license beyond its original termination date and for loss of reputation. According to Astoria, Holiday’s refusal to renew the License was wrongful and commercially unreasonable.”Page 22 of the 2024 FDD, Item 3
Outcome: “Holiday filed an answer denying any liability, and discovery is ongoing.”
Concluded (2)
Allied Hotels Limited v. Holiday Hospitality Franchising, LLC f/k/a Holiday Hospitality Franchising, Inc., and Six Continents Hotels, Inc.
settledBrought by a franchisee · filed 2012-09-04 · United States District Court, Northern District of Georgia, Atlanta Division · Case No. 1:12-cv-03086-rlv
“On September 4, 2012, Allied Hotels Limited (“Allied”), a former Crowne Plaza licensee of Six Continents Hotels, Inc. (“SCH”), filed suit against SCH and Holiday Hospitality Franchising LLC, alleging breach of the License Agreement and breach of the implied covenant of good faith and fair dealing based upon SCH’s termination of its License Agreement with Allied.”Page 28 of the 2024 FDD, Item 3
Outcome: “The parties resolved this matter with SCH and Holiday making a payment of $180,000 payment to Allied.”
Lenexa Hotel, LP v. Holiday Hospitality Franchising, Inc.
settledBrought by a franchisee · filed 2012 · United States District Court, District of Kansas, Kansas City Division, KS · Case No. 12CV2775; Case No. 15-9196
“A lawsuit was filed by a Crowne Plaza® licensee in Lenexa, Kansas, initially on December 10, 2012 and later amended on January 17, 2013, alleging breach of contract, breach of the covenant of good faith and fair dealing and seeking declaratory relief as result of Holiday’s alleged failure to meet its contractual obligations concerning the reservation system.”Page 28 of the 2024 FDD, Item 3
Outcome: “Following a mediation, the parties resolved this matter with no admission of liability by either party and Holiday making a payment to Plaintiff of $10.9M.”
Parent, affiliates, master franchisor and subfranchisor
Pending (2)
Marina di Castello SpA v. IHG Hotels Limited
pendingBrought by a franchisee · IHG Hotels Limited · filed 2013-11-22 · Court of Santa Maria Capua Vetere, Italy · Docket No. 4307/27
“The former licensee of the Holiday Inn Resort Naples - Castel Volturno hotel and the Crowne Plaza Caserta hotel issued a claim against IHG Hotels Limited (“IHGHL”), brought in the Court of Santa Maria Capua Vetere, seeking to have the Court: 1) declare that the arbitration provisions in the license agreements are invalid; 2) determine whether or not IHGHL's conduct has resulted in damages to the”Page 22 of the 2024 FDD, Item 3
Outcome: “On October 10, 2023 the former licensee filed an appeal which is now pending.”
K.J. Harjani & Cia Ltda v. Six Continents Hotels, Inc.
pendingBrought by a franchisee · Six Continents Hotels, Inc. · filed 2006-07-05 · 3rd Civil Court of Manaus, Brazil · Case No. 0022145-55.2006.8.04.0001
“… 3rd Civil Court of Manaus, Brazil, Case No. 0022145-55.2006.8.04.0001 (July 5, 2006). The former licensee of the Holiday Inn® hotel in Manaus, Brazil filed a lawsuit seeking damages for alleged wrongful termination of the license agreement. The license agreement was terminated due to non-compliance with brand standards in 2002.”Page 22 of the 2024 FDD, Item 3
Outcome: “SCH intends to defend against this claim vigorously.” (page 23)
Concluded (2)
Eric Washington v. Six Continents Hotels, Inc.
dismissedSix Continents Hotels, Inc. · filed 2016-05-27 · United States District Court, Central District of California, Western Division · Civil Action No. 2:16-cv-03719
“On May 27, 2016, Washington filed suit against Six Continents Hotels, Inc., (“SCH”), alleging that SCH sent him hundreds of text messages without his consent, in violation of the Telephone Consumer Protection Act (TCPA). The TCPA prohibits companies from using an automatic telephone dialing system (ATDS) to send text messages and prohibits certain text messages absent written consent.”Page 32 of the 2024 FDD, Item 3
Outcome: “The parties agreed to resolve this matter with a payment made by SCH of $175,000.”
Hospitality Marketing Concepts, Inc. v. Six Continents Hotels, Inc. & InterContinental Hotels Group, PLC
settledSix Continents Hotels, Inc.; InterContinental Hotels Group, PLC · filed 2015-11-02 · United States District Court, Central District of California, Southern Division · Civil Action No. 8:15-cv-01791
“On June 12, 2015, Hospitality Marketing Concepts, Inc. (“HMC”) filed suit against “InterContinental Hotels Group” in California Superior Court. Following an amended complaint and voluntary dismissal, HMC filed a new action in California federal court on November 2, 2015 against Six Continents Hotels, Inc. and InterContinental Hotels Group, PLC alleging breach of oral contracts, fraud, fraudulent”Page 33 of the 2024 FDD, Item 3
Outcome: “Following a partially successfully motion for summary judgment by SCH, the parties”
This list shows 15 of the 60 matters Item 3 discloses; the rest are in the filing.
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?