Against whom are the counterclaims asserted by Holiday in the 'Atlanta Hospitality Investment, LLC v. Holiday Hospitality Franchising, LLC' case related to Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
gation that must be disclosed in this Item 3.*
Pending Litigation:
Atlanta Hospitality Investment, LLC, a Georgia limited liability company, and Mohammad Sarower Hossain, individually v. Holiday Hospitality Franchising, LLC, DeKalb County, Georgia Superior Court, Civ. Action No. 23-CV-9509 (October 31, 2023).
Plaintiffs are the licensee and guarantor with respect to a former Holiday Inn & Suites branded hotel. Plaintiffs filed their initial petition for declaratory judgment on October 31, 2023 and an amended petition on December 7, 2023. The plaintiffs ceased operating the hotel as a Holiday Inn & Suites branded hotel and de-identified the hotel without Holiday's permission long before the October 15, 2041 expiration date of the license agreement. 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 liable to Holiday for ceasing to operate the hotel as a Holiday Inn & Suites and de-identifying the hotel. On February 2, 2024, Holiday filed an answer and counterclaims against the plaintiffs, asserting claims for breach of the license agreement and associated guaranty related to licensee's ceasing operating the hotel as a Holiday Inn & Suites branded hotel and deidentifying the hotel long before its scheduled expiration date. Holiday's counterclaims seek liquidated damages, other unpaid amounts owed under the license, interest and attorneys' fees, exceeding $2.1 million total. Holiday believes plaintiffs are entitled to none of the relief sought in their petition for declaratory relief and that Holiday is entitled to judgment in the amounts sought in its counterclaims. On March 26, 2024, Plaintiffs filed a motion for summary judgment on their claims, and a "supplemental" motion for summary judgment on April 24, 2024. Holiday filed its own motion for summary judgment on all claims on August 29, 2024. Both motions are fully briefed, and the parties are awaiting the Court's ruling. Holiday believes the plain
Source: Item 3 — Litigation (FDD pages 16–27)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, in the case of Atlanta Hospitality Investment, LLC v. Holiday Hospitality Franchising, LLC, the counterclaims asserted by Holiday Hospitality Franchising, LLC are against Atlanta Hospitality Investment, LLC and Mohammad Sarower Hossain. The case was filed in the DeKalb County, Georgia Superior Court.
The original petition was filed by the licensee and guarantor, respectively, of a former Holiday Inn & Suites branded hotel. The filing occurred after the plaintiffs ceased operating the hotel as a Holiday Inn & Suites and de-identified it without Holiday's permission, well before the license agreement's expiration date in 2041. The amended petition alleges misrepresentations by Holiday before the license agreement was executed but does not claim damages.
Holiday's counterclaims against Atlanta Hospitality Investment, LLC and Mohammad Sarower Hossain seek damages exceeding $2.1 million for breach of the license agreement and associated guaranty. This breach relates to the licensee ceasing operation and de-identifying the hotel before the agreement's scheduled expiration. The counterclaims include requests for liquidated damages, unpaid amounts, interest, and attorneys' fees.