What specific damages were sought by the defendants in their counterclaims against Holiday Hospitality Franchising, LLC, including punitive damages, and how might this relate to potential litigation involving Atwell Suites?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
' settlement. This matter was dismissed with prejudice on February 8, 2016.
The Generation Companies, LLC v. Holiday Hospitality Franchising, LLC and InterContinental Hotels Group Resources, Inc., United States District Court, Eastern District of North Carolina, Civil Action No. 5:15-cv-220, transferred to United States District Court, Northern District of Georgia, Civil Action No. 1:15-cv-4052-LMM (April 20, 2015).
On April 20, 2015, a licensee of a Staybridge Suites® hotel filed suit against Holiday and InterContinental Hotels Group Resources, Inc., and alleged that defendants intentionally interfered with contractual relations, committed slander, and violated North Carolina's Unfair and Deceptive Trade Practices Act. Plaintiffs sought compensatory damages and unspecified punitive damages. The parties resolved this matter with no money paid by defendants and the lawsuit was dismissed with prejudice on January 6, 2016.
Jesta Hospitality CT, LLC v. Holiday Hospitality Franchising, LLC, Superior Court of Dekalb County, Georgia, Civil Action File No. 16cv5092-1 (May 26, 2016).
A former licensee of a Crowne Plaza® hotel filed suit against Holiday alleging breach of contract, breach of the implied duty of good faith and fair dealing, promissory estoppel, and seeking a declaratory judgment. Holiday filed a counterclaim seeking damages related to its termination of the license agreement and seeking unpaid fees. This matter was resolved with no payment by Holiday and dismissed with prejudice on December 27, 2016.
Ahijit Vasani a/k/a Andy Vasani, Bhavna Vasani a/k/a Becky Vasani, Innvite Hospitality Group, LLC v. Holiday Hospitality Franchising, LLC and Six Continents Hotels, Inc. d/b/a Intercontinental Hotel Group,, Northern District of Georgia, Case No. 1:24-cv-03498-LMM (August 7, 2024)
Plaintiffs or entities associated with them purchased a Holiday Inn Express branded hotel in 2018. 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. On July 17, 2023, Plaintiffs filed an initial complaint against Holiday and others in the Court of Common Pleas, Lucas County, Ohio, asserting claims for breach of contract, promissory estoppel, unjust enrichment, fraud, and civil conspiracy and seeking compensatory and punitive damages, costs and attorneys' fees. The plaintiffs filed an amended complaint on October 12, 2023, which asserted the same claims against Holiday and sought the same relief as the initial complaint. On February 2, 2023, Holiday filed a motion to transfer for venue and motion to dismiss for failure to state a claim.
Source: Item 3 — Litigation (FDD pages 15–27)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, Item 3 details various legal disputes involving Holiday Hospitality Franchising, LLC, which is relevant to understanding the types of claims that might arise in franchise-related litigation. In one case, The Generation Companies, LLC v. Holiday Hospitality Franchising, LLC, the plaintiff sought compensatory damages and unspecified punitive damages, alleging intentional interference with contractual relations, slander, and violations of North Carolina's Unfair and Deceptive Trade Practices Act. This case was resolved with no money paid by the defendants.
In another instance, Holiday Hospitality Franchising, LLC v. Stamford Plaza Hotel and Conference Center, L.P., the defendants filed a counterclaim alleging breach of contract, failure to provide consultation and advice, and misrepresentation, along with a separate claim for fraudulent inducement. Holiday sought unpaid system fees, liquidated damages, and other amounts in excess of $5 million in this case. Similarly, in Holiday Hospitality Franchising, LLC v. AE Hotels, LLC, the defendants counterclaimed alleging unjust termination of the license agreement, ultimately resulting in a judgment of $950,145.90 for Holiday, plus attorneys' fees and prejudgment interest.
These examples show that franchisees may seek various damages from the franchisor, including compensatory, punitive, and actual damages, based on claims such as breach of contract, misrepresentation, tortious interference, and unfair trade practices. Conversely, the franchisor often seeks unpaid fees and liquidated damages from franchisees. For a prospective Atwell Suites franchisee, this underscores the importance of understanding the franchise agreement, potential grounds for disputes, and the possible financial implications of litigation. It also highlights the need to assess the franchisor's litigation history and approach to resolving conflicts.