Texarkana hotel owner sues hotel company, makes allegations of fraud
The owner of a Comfort Suites franchise in Texarkana, Texas, is suing Choice Hotels for alleged breach of contract and fraud.
A complaint filed Thursday in Bowie County district court alleges Choice violated its franchise agreement with Onkar Lodging Inc., which operates a Comfort Suites at 215 Richill Drive, when it granted a franchise for a Comfort Suites at 5420 Crossroads Parkway in Texarkana, Ark. Onkar Lodging, Harbhajan Nahal and Maljinder Singh filed the complaint with the help of Irving, Texas, lawyer Jules Slim and Texarkana lawyer David Carter.
Onkar claims the franchise agreement it entered with Choice in 2005 provides for an "area of enhanced protection" in which Choice will not grant a franchise for a same-brand hotel that would compete for business. Should Choice decide to consider granting a same-brand franchise in the area, then it must pay for a study to determine the effect a second same-brand hotel would have on the first, according to the complaint. If the economic impact to the first hotel would be less than 5 percent, Choice would be free to grant the second franchise.
Onkar alleges such a study was never done and objected when notified of plans to erect a second Comfort Suites in the Twin Cities; it was ultimately built and opened for business in 2013 in Texarkana, Ark. Onkar claims the second, same-brand hotel has hurt it financially and is asking for damages in excess of $1 million.
Read more: http://www.texarkanagazette.com/news/texarkana/story/2017/sep/10/hotel-owner-sues-hotel-company-makes-allegations-fraud/690460/
