How much did Surestay Hotel By Best Western pay Ma-Krupa to settle the lawsuit?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
On December 12, 2017, Ma-Krupa executed a Franchise Agreement for a SureStay location in Kansas City. It activated as a SureStay Plus shortly thereafter. The Franchise Agreement included language regarding a right of first refusal for Ma-Krupa to apply as a Best Western member hotel. On December 11, 2020, Ma-Krupa sued SureStay, Inc. alleging that SureStay violated the right of first refusal in the parties' Franchise Agreement by activating a Best Western member hotel nearby without first giving Ma-Krupa an opportunity to apply to become a Best Western member. On November 22, 2021, the parties settled the case with mutual releases per a confidential settlement agreement, the disclosure of which is only allowed if required by applicable law or court order. The parties agreed that SureStay would pay Ma-Krupa $165,000, plus forgive Ma-Krupa's past due account balance of approximately $38,500.
Source: Item 2 — Business Experience (FDD pages 11–21)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, Surestay settled a case with Ma-Krupa on November 22, 2021. Ma-Krupa had sued Surestay, Inc. alleging that Surestay violated the right of first refusal in the Franchise Agreement.
As part of the settlement, Surestay Hotel By Best Western agreed to pay Ma-Krupa $165,000. In addition to this payment, Surestay also agreed to forgive Ma-Krupa's past due account balance, which amounted to approximately $38,500.
Therefore, the total value that Surestay Hotel By Best Western provided to Ma-Krupa to settle the lawsuit was the sum of the cash payment and the forgiven debt, totaling $203,500. The settlement agreement included mutual releases by both parties and was subject to confidentiality, with disclosure only allowed if required by law or court order.