Local motel sued by franchise for allegedly defaulting on membership payments

GRETNA – A local motel is being sued by a nationwide chain it franchised with for allegedly failing to make membership payments.

Vantage Hospitality Group Inc. filed suit against Mehsun LLC in the 24th Judicial District Court on May 17.

Vantage Hospitality Group Inc. claims it entered into a Americas Best Value Inn by Vantage Membership Agreement franchise with Mehsun on May 23, 2007. The plaintiff alleges that the agreement called for $7,500 per year in addition to $125 for every unit over 60 in the motel to pay for membership fees, advertising fees, annual conference fees, data update fees, member approved program fees and billing.

Vantage Hospitality Group claims that on Aug. 31, 2010 Mehsun defaulted on its payment in the amount of $13,818. The plaintiff asserts that after the default it accelerated the payment agreement and asked for $45,197 owed through Oct. 30, 2011. The defendant made two payments in the amount of $4,606 each, but then allegedly ceased to make any more payments.

The defendant is accused of breach of contract.

Damages in the amount of $35,985 plus late interest of 1.5% per month are sought by the plaintiff.

Vantage Hospitality Group Inc. is represented by Richard B. Levin of the Metairie-based Levin Law Offices.

The case has been assigned to Division C Judge June Berry Darensburg.

Case no. 727-128.