De-Branded Holiday Inn Franchisee Sues Whiny Little Tattletales. Allegedly.
December 2, 2008 by Sean Kelly
Filed under Business
Franchise Pick Diss-claimer: The author wishes to make it clear that neither this post, previous posts nor future posts should be construed as criticism or negative commentary upon former Holiday Inn franchisee Kronos Hotels, LLC., its owner Charles Morais, or their law firm.
In fact, we believe that Kronos Hotels and Mr. Morais are an inspirational testament to perseverance in the face of adversity. 
Despite the fact that Kronos Hotels (allegedly) could not afford to pay its employees, (allegedly) could not afford to keep its lights on, (allegedly) could not afford to refrigerate the food it served to the public, (allegedly) could not keep its liquor license current despite continuing to sell alcohol, and (allegedly) could not maintain the minimum standards needed to keep its Lancaster, PA property part of the Holiday Inn franchise chain, it was able to muster the funds for the really important things… like suing the whiny little whistleblowing tattletale ex-employees for saying not-nice things about them on the Internet.
It’s really an outrage that a few bad apples (like the publishers of KronosHotelsllc.com) can damage the pristine corporate image that Kronos has worked so hard to build and maintain.
* * * * * * *
Back in October, we reported the fall of the iconic PA Dutch Holiday Inn in Lancaster, PA, a particular favorite spot due to this author’s fascination with roadside statues of giant Amish couples (see WORDLESS WEDNESDAY: Save the Amish (Sign)!). We reported how Holiday Inn had banished the property from its franchise chain due to little things like a restaurant closed due to health code violations, using a guest room (with the air conditioning cranked, mind you) as a walk-in cooler, selling liquor without a license, and the annoying habit of not paying, well, just about everyone. Allegedly. (October 7th, 2008 HOLIDAY INN: Defranchising a PA Dutch Country Icon; October 8th, 2008 HOLIDAY INN: Franchisors Must Protect Their Brands)
Well, it turns out the same thing (allegedly allegedly allegedly) was happening at other Kronos properties across the country. In October, we wrote about the website established by former Kronos manager Tom Showalter to highlight the company’s negative press ( October 12th, 2008 HOLIDAY INN: Protest Site Targets Franchisee Kronos Hotels). According to the Lancaster Sunday News, the site was not pleasing to those it featured:
Tom Showalter, of Lancaster, was named as a defendant in a lawsuit filed in Cobb County, Ga., by attorney Matthew M. Wilkins on behalf of Kronos Hotels LLC and its principals, Malaysian entrepreneurs Rajesh Mir and Charles Morais.
The Greenfield Road hotel was one of 16 in eight states Kronos acquired from Lodgian Inc. for $64.9 million in June 2007.
According to Showalter, problems (including paychecks that bounced, a restaurant closed for health violations, investigations into unlicensed alcohol sales, utility shutoffs and vendor services terminated for nonpayment of bills) began overwhelming the hotel soon after the Kronos takeover.
Showalter, who served as interim general manager during the transition from Lodgian to Kronos, began filing complaints with Kronos corporate officials in Georgia and was subsequently fired.* * * * * * *
The lawsuit accuses Showalter of, among other things, libel, fraud, assault, intentional infliction of emotional distress and slander.
It seeks punitive damages in excess of $250,000.Showalter said he is in the process of filing an answer denying all allegations listed in the lawsuit. He said he cannot afford legal representation.
Unemployed since his termination in December 2007, Showalter has been attempting to get back into the hospitality industry but believes his involvement in the Greenfield Road situation has made it hard for him to find work.
“After 18 years [in the business] it all came to a screeching halt when this happened,” he said.
To Showalter, the lawsuit involves “a classic case of First Amendment rights.” He noted, for example, that all the articles linked to his Web site were attributed to the original authors.
“I wrote no articles at all,” he said.
As for the assault charge, Showalter said, “I have no clue where that came from.
Don’t let the naysayers get you down, Charles!
Despite what the Negative Nellies over at KronosHotelsllc.com say, Kronos Hotels LLC and its principals, Malaysian owners Rajesh Mir and Charles Morais show real promise of building an American success story. While it appears they don’t grasp some fundamental concepts, such as freedom of speech and how to operate hotels, they have mastered one uniquely American skill: The Art of the Frivolous Lawsuit.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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Great Article….lol…almost peed myself when reading this. Thanks Sean….better watch out…Kronos might have to come after you next for posting truths!
Mr Kelly,
Thank you for one hell of a good article.I think it was greatly written and I LOVE the image up top.hmmm many have asked about what will become of these beautiful statues well I like your idea…lol..it is great to have someone that can feel the pain of so many and express that in a way that almost everyone can relate to so again THANK YOU!!!
Sean, Your story made me lol! I know Tom Showalter very well, he is a person who stands up for what he believes in. I am from Lancaster Pa and I have been following this story from the start. What Kronos has done is disgusting, and I am so glad that Tom is there to help. He is a good man that when asked for help by the down and out workers he stepped up. Now he can”t find a job, but I think that anyone who wants the job done right should step up and offer him a job… Thank you, Darlene
This is extremely funny. While I am not an employee affected by this mess, I am a former hotel manager that has a great amount of empathy for these workers. Keep up the good fight, its one worth winning. As a travel planner now, I’ve helped where I can directing business as I see fit (and not towards properties in the Kronos system).
Tom wrote: Great Article….lol…almost peed myself when reading this.
It’s always adviseable to empty ones bladder before reading about franchising… Kronos in particular.
Jonayla Thank you for one hell of a good article…
Tom & Jonayla… who could make this stuff up? A company that (allegedly) doesn’t pay its employees then sues them for complaining about it?
I’m glad you’re keeping your sense of humor… it’ll be crucial in fighting this battle.
As the (alleged) reporter for Lancaster Newspapers who has been documenting the (alleged) problems at the Greenfield Road facility for almost two months, I commend you for the (alleged) stand you are taking. I encourage you to keep up the (alleged) great work to make sure this (allegedly) bizarre situation comes to a fruitful conclusion.
Well Sean, I may not have a lot of sense but I do have a sense of humor, well for now anyway, that may end up being part of the lawsuit that I have to turn over my sense of humor along with my consitutional rights.
Lol ok thats it…I am telling on both of you!!!
Chip:
I don’t think that you’ve got anything to worry about. The rumors of a secret Sunday News hit squad that spirits away detractors in the night, that crushes naysayers and typo-watchers would be too intimidating. Plus, you’ve got a legal team. And a newspaper.
No, I think unemployed bloggers are most at risk. Second would be guests who filled out unfavorable comment cards. Third: those who cancelled reservations when they learned that the Lancaster Holiday Inn had no electricity (”The Amish Experience” as Charles billed it) and that the Sunday brunch is served in rooms 138-142 inclusive.
Fourth: The homeless guy sleeping on the mattress mountain in the parking lot. (It was just a couple times, I swear)
Chip, you’ve done a great job reporting this story. I’m proud of SN for not downplaying it. I also love the rabbit hole blog entry. You have discovered the franchise industry’s “Cone of Silence.” There’s obviously a little leak in the cone right above Lancaster and, in my case, Leola.
Sean,
We are pleased to offer you a free extra day on your stay at the Kronos Crown Palace in Malaysia.*
We’ll even upgrade you to the Presidential Suite, although I will remind you the last President was kidnapped and never heard from again.
Alledgedly.
R&C
(from a country with no extradition treaty)
*Offer void where prohibited by law or outbreaks of salmonella
Rajesh and Chuck:
Can I exchange the extra night for two nights at your new Motel 4? I love the slogan: “We’ll leave the food out for you. Unrefrigerated.”
As an alleged former alleged employee of this alleged company, I am thankful for people who will stand up to the alleged tyranny we all allegedly suffered and continue to allegedly suffer still. There are still alleged employees are still allegedly waiting for alleged paychecks which allegedly won’t bounce in alleged addition to alleged NFS fees from their alleged banks based on the alleged lack of alleged fund because their alleged paychecks allegedly bounce in the alleged City of alleged Louisville in the alleged Commonwealth of alleged Kentucky. And allegedly, there is an alleged parent who allegedly lost the alleged custody of their alleged minor alleged child because, allegedly, the alleged pay from this alleged company never allegedly existed due to allegedly bouncing alleged checks to this alleged employee.
I allegedly and firmly stand beside all alleged comments I allegedly made on some alleged website about an alleged hotel which is allegedly closed because the alleged owners did not allegedly pay their alleged bills.
I heart you guys and the continued distribution of alleged truths and power to the alleged former employees who allegedly got the alleged shaft.
I love that word…alleged…alleged…alleged… ;)
Y know I just cant stop coming back here just so I can have a laugh!! Sean you definitly made my week with this article. And Beth we heart you too. And that shaft wasnt ALLEGED >>>it hurt pretty bad…lol