<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
AMENDMENT NO. 2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
U.S. FRANCHISE SYSTEMS, INC.
--------------------------------------------------------------------------------
(Name of Issuer)
Class A Common Stock, par value $0.01 per share
--------------------------------------------------------------------------------
(Title of Class of Securities)
902 956 30 9
--------------------------------
(CUSIP Number)
Harold S. Handelsman
Meridian Associates, L.P.
200 West Monroe, Suite 3800
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
November 2, 2000
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), (f) or (g), check the following box |_|.
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 2 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Meridian Associates, L.P.
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Illinois
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
PN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 3 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
HSA Properties, Inc.
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 4 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
SDI, Inc.
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 5 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
USFS Acquisition Co.
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
AF
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
18,605,406
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 18,605,966
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
18,605,966
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
93%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 6 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Michael A. Leven
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 7 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Andrea Leven
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 8 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Jonathan Leven
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 9 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Robert Leven
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 10 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Adam Leven
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
U.S.A.
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 11 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
SDI-Franchise Investor, Inc.
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 12 of 21 Pages
-------------------------------------------------------------------------------
(1) NAMES OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
HT-Franchise Investment Group LLC
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER (a) /X/
OF A GROUP* (b) / /
-------------------------------------------------------------------------------
(3) SEC USE ONLY
-------------------------------------------------------------------------------
(4) SOURCE OF FUNDS*
N/A
-------------------------------------------------------------------------------
(5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E)
-------------------------------------------------------------------------------
(6) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
-------------------------------------------------------------------------------
(7) SOLE VOTING POWER
0
NUMBER OF -------------------------------------------------
SHARES (8) SHARED VOTING POWER
BENEFICIALLY 0
OWNED BY -------------------------------------------------
EACH (9) SOLE DISPOSITIVE POWER
REPORTING 0
PERSON WITH -------------------------------------------------
(10) SHARED DISPOSITIVE POWER
0
-------------------------------------------------------------------------------
(11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
-------------------------------------------------------------------------------
(12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
-------------------------------------------------------------------------------
(13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0%
-------------------------------------------------------------------------------
(14) TYPE OF REPORTING PERSON*
00
-------------------------------------------------------------------------------
<PAGE>
ITEM 1. SECURITY AND ISSUER
This Statement on Schedule 13D (the "Schedule 13D") relates to the
Class A Common Stock, par value $0.01 per share (the "Class A Common Stock"), of
U.S. Franchise Systems, Inc., a Delaware corporation ("USFS"), which has its
principal executive office at 13 Corporate Square, Suite 250, Atlanta, GA 30329.
Some of the Reporting Entities are holders of Class B Common Stock, par value
$0.01 per share ("Class B Common Stock"), which is convertible at any time into
Class A Common Stock. The Class A Common Stock and the Class B Common Stock are
collectively referred to herein as the "Common Stock".
This Schedule 13D amends the Schedule 13D filed by the Reporting
Entities on September 28, 2000, as amended on October 2, 2000.
ITEM 2. IDENTITY AND BACKGROUND
Meridian Associates, L.P., an Illinois limited partnership
("Meridian"), SDI, Inc., a Nevada corporation ("SDI"), USFS Acquisition Co., a
Delaware corporation ("Newco"), HSA Properties, Inc., a Delaware corporation
("HSA"), SDI-Franchise Investor, Inc., a Nevada corporation ("SDI-Franchise")
and HT-Franchise Investment Group LLC, a Delaware limited liability company
("HT-Franchise") were each formed solely for the purposes of holding interests
in other entities. Michael A. Leven, Andrea Leven, Jonathan Leven, Robert Leven
and Adam Leven (collectively, the "Leven Stockholders") were holders of Common
Stock. The Leven Stockholders, Meridian, SDI, Newco, HSA, SDI-Franchise and
HT-Franchise shall hereinafter be referred to individually as a "Reporting
Entity," and collectively as the "Reporting Entities". Each of the individuals
listed below is a U.S. citizen.
The business address and principal office address of Meridian
and of the persons named below is 200 West Madison Street,
Suite 3800, Chicago, IL 60606. Meridian Investments, Inc. is
the general partner of Meridian and is a Delaware corporation.
Its executive officers include: (i) Nicholas J. Pritzker,
President, (ii) Thomas J. Pritzker, Vice President and
Secretary, (iii) Glen Miller, Vice President, Treasurer and
Assistant Secretary, (iv) John Kevin Poorman, Vice
President and (v) Harold S. Handelsman, Vice President.
Meridian Investments, Inc.'s board of directors consists of
Nicholas J. Pritzker, Thomas J. Pritzker and Glen Miller.
The business address and principal office address of SDI and,
unless otherwise indicated, of the persons named below is 200
West Madison Street, Suite 3800, Chicago, IL 60606. Its
executive officers include: (i) Thomas J. Pritzker, President,
(ii) Harold S. Handelsman, Vice President, Secretary and
Treasurer, (iii) Paul A. Bible, Vice President, having a
business address at 201 West Liberty Street, Suite 300, Reno,
Nevada 89501, and (iv) Kirk Rose, Vice President. SDI's board
of directors consists of Thomas J. Pritzker, Harold S.
Handlesman and Paul A. Bible.
Page 13 of 21
<PAGE>
The business address and principal office address of HSA and
of the persons named below is 200 West Madison Street, Suite
3800, Chicago, IL 60606. Its Executive Officers include:
Nicholas J. Pritzker, President, (ii) Glen Miller, Vice
President, Treasurer and Assistant Secretary, (iii) Thomas J.
Pritzker, Vice President and Secretary, (iv) John Kevin
Poorman, Vice President and (v) Harold S. Handelsman, Vice
President. HSA's board of directors consists of
Nicholas J. Pritzker, Glen Miller, Thomas J. Pritzker, and
John Kevin Poorman.
The business address and principal office address of Newco and
of persons named below is 200 West Madison Street, Suite 3800,
Chicago, IL 60606. Its executive officers include: (i) Douglas
Geoga, President, (ii) Harold S. Handelsman, Vice President
and Secretary and (iii) Glen Miller, Vice President and
Treasurer. Newco's board of directors consists of Harold S.
Handelsman, Douglas Geoga and Glen Miller.
The business address and principal office address of
SDI-Franchise and, unless otherwise indicated, of the persons
named below is 200 West Madison Street, Suite 3800, Chicago,
IL 60606. Its executive officers include: (i) Douglas Geoga,
President, (ii) Mark Hoplamazian, Vice President and
Treasurer, (iii) Paul A. Bible, Vice President and Secretary,
having a business address at 201 West Liberty Street, Suite
300, Reno, Nevada 89501, and (iv) Kirk Rose, Vice President.
SDI-Franchise's board of directors consists of Douglas Geoga,
Mark Hoplamazian and Paul A. Bible.
HT-Franchise is managed and controlled by its sole member,
SDI-Franchise.
Michael A. Leven is a U.S. citizen. He is principally employed
as Chairman, President and Chief Executive Officer of USFS
located at 13 Corporate Square, Suite 250, Atlanta Georgia
30329. He is also a director of USFS.
Andrea Leven is a U.S. citizen and resides at 1142 Brookhaven
Row, Atlanta, Georgia 30319.
Jonathan Leven is a U.S. citizen. He is principally employed
as Senior Vice President, Marketing of USFS located at 13
Corporate Square, Suite 250, Atlanta Georgia 30329.
Robert Leven is a U.S. citizen. He is principally employed as
Vice President of Hodges Ward Elliot located at The Lenox
Building, 12th Floor, 3399 Peachtree Road NE, Atlanta, Georgia
30326.
Adam Leven is a U.S. citizen. He is principally employed as a
Graduate Teaching Assistant at University of Georgia,
Department of Classics located at Park Hall, Athens, Georgia
30602.
Page 14 of 21
<PAGE>
During the last five years, none of the Reporting Entities, the
general partner of Meridian or, to the knowledge of the Reporting Entities,
the executive officers or directors of SDI, HSA SDI-Franchise or the general
partner of Meridian has (i) been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) been a party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or
prohibiting or mandating activities subject to, federal or state securities
laws or finding any violations with respect to such laws.
The Reporting Entities may constitute a "group" within the meaning of
Rule 13d-5 under the Securities Exchange Act, as amended (the "Act"), with
respect to their beneficial ownership of the shares of Common Stock of USFS to
which this Schedule 13D relates.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Pursuant to the Acquisition Agreement, as described more fully below,
SDI is required to provide to Newco the necessary funds in order for Newco to
consummate the tender offer as contemplated in the Acquisition Agreement. SDI
has fulfilled this obligation by making funds available through one or more
affiliates or intermediaries, to HT-Franchise, which has used those funds to
purchase 17,161,531 shares of Newco's common stock for a total purchase price of
$85,807,655.00.
ITEM 4. PURPOSE OF TRANSACTION
Acquisition Agreement. On September 18, 2000, SDI, HSA, Newco and
Meridian entered into an Acquisition Agreement with USFS (the "Acquisition
Agreement"), pursuant to which Newco agreed to commence a tender offer to
purchase all of the outstanding Common Stock of USFS for $5.00 per share (the
"Offer"). On November 2, 2000, Newco acquired 14,882,008 shares of Common Stock
pursuant to the Offer for a total purchase price of $74,410,040, representing
approximately 75% of the outstanding shares of Common Stock.
Exchange Agreement. In connection with the Acquisition Agreement,
Newco, Meridian, HSA and the Leven Stockholders entered into an Exchange
Agreement (the "Exchange Agreement"), pursuant to which Meridian, HSA and the
Leven Stockholders have exchanged an aggregate of 2,992,222 shares of Common
Stock for an equal number of shares of common stock in Newco.
Other Purchases. On November 10, 2000, Newco acquired 731,736
additional shares of Common Stock at a price of $5.00 per share in a series of
transactions with officers of USFS who held restricted shares of Common Stock
that became vested following completion of the Offer.
Merger. Subject to receipt of any required stockholder approval, the
Reporting Entities expect Newco to merge into USFS. Upon consummation of the
merger, the stockholders who elected not to accept the Offer will receive $5.00
for each share of Common Stock, subject to dissenter's rights properly exercised
under Delaware law, and USFS will become a privately held company, owned by the
Reporting Entities.
Page 15 of 21
<PAGE>
Changes to the Board of Directors. The Board of Directors of USFS, upon
consummation of the merger of Newco into USFS will be the members of the Board
of Directors of Newco immediately prior to the merger. Those people will be
Harold S. Handelsman, Douglas Geoga, Glen Miller, Michael A. Leven and Steven
Romaniello.
ITEM 5. INTERESTS IN SECURITIES OF ISSUER
(a) Aggregate Amount Beneficially Owned and Percentage of
Outstanding Common Stock:
The aggregate number of shares of Common Stock owned
beneficially by the Reporting Entities as of November 13 is
18,605,966 representing approximately 93% of the outstanding
Common Stock, all of which is owned of record and
beneficially by Newco. Meridian SDI, HSA, SDI-Franchise,
HT-Franchise and the Leven Stockholders do not have
beneficial ownership of any Common Stock.
(b) Number of shares of Common Stock as to which Reporting
Entities hold:
With respect to Meridian:
(i) Sole power to vote or to direct the vote -0;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -0.
With respect to HSA:
(i) Sole power to vote or to direct the vote -0;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the
disposition - 0.
With respect to Newco:
(i) Sole power to vote or to direct the vote - 18,605,966
shares of Common Stock;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or to direct the disposition -
18,605,966 shares of Common Stock;
(iv) Shared power to dispose or to direct the
disposition - 0.
With respect to Michael A. Leven:
(i) Sole power to vote or direct the vote - 0;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the
disposition - 0.
With respect to Andrea Leven:
(i) Sole power to vote or direct the vote - 0;
Page 16 of 21
<PAGE>
(ii) Shared power to vote or direct the vote -0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to Jonathan Leven:
(i) Sole power to vote or direct the vote - 0;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to Robert Leven:
(i) Sole power to vote or direct the vote - 0;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to Adam Leven:
(i) Sole power to vote or direct the vote - 0;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to SDI:
(i) Sole power to vote or to direct the vote - 0;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to SDI-Franchise:
(i) Sole power to vote or to direct the vote - 0;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
With respect to HT-Franchise:
(i) Sole power to vote or to direct the vote - 0;
(ii) Shared power to vote or to direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 0;
(iv) Shared power to dispose or direct the disposition -
0.
(c) Transactions in the previous 60 days.
Over the course of the last 15 months, Jonathan Leven has
borrowed approximately $46,000 on margin form the account in
which he holds his shares of USFS Common Stock. On September
26, 2000, Jonathan Leven paid off any such loans plus interest
in full.
Page 17 of 21
<PAGE>
Except as noted above, the Reporting Entities have not, and to
the best knowledge of each of the Reporting Entities, none of
the general partner of Meridian or the executive officers or
directors listed in Item 1 hereto, has effected any
transactions in the shares of Common Stock during the past 60
days.
(d) Any other person known to have the right to receive or the
power to direct dividends.
None.
(e) Date on which the reporting person(s) ceased to be a
beneficial owner of more than five percent of the class of
securities.
On November 10, 2000, Michael Leven and Andrea Leven ceased to
be beneficial owners of more than 5% of the Common Stock.
On November 13, 2000, Meridian ceased to be a beneficial owner
of 5% of the Common Stock.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDING OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER
See the information in Item 4, which is incorporated into this Item 6.
Stockholders Agreement. On November 2, 2000, Meridian, HSA,
HT-Franchise and the Leven Stockholders entered into a Stockholders Agreement
with respect to the shares of common stock in Newco that they own ("Stockholders
Agreement"). The Stockholders Agreement provides for various rights and
restrictions, including transfer restrictions with respect to their shares, a
right of first offer, tag-along rights, co-sale rights, restrictions on the
pledging of shares, put-option rights, call-option obligations and an agreement
to cause the board of directors to elect Michael A. Leven to the Newco Board of
Directors.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS
Exhibit 1 Written agreement regarding joint filing pursuant to
Rule 13d-1(k).
Exhibit 2 Acquisition Agreement incorporated by reference from
Exhibit 2.1 to the Current Report on Form 8-K of USFS
filed 9/20/00.
Exhibit 3 Exchange Agreement incorporated by reference from
Exhibit 99.1 to the Current Report on Form 8-K of USFS
filed 9/20/00.
Page 18 of 21
<PAGE>
Signature
After reasonable inquiry to the best of its knowledge and belief, each
of the undersigned certifies that the information set forth in this Statement is
true, complete and correct.
Dated: November 13, 2000
MERIDIAN ASSOCIATES, L.P.
By: MERIDIAN INVESTMENT, INC.,
ITS GENERAL PARTNER
By: /s/ Harold S. Handelsman
---------------------------------
Its: Vice President
Dated: November 13, 2000
SDI, INC.
By: /s/ Harold S. Handelsman
---------------------------------
Its: Vice President
Dated: November 13, 2000
HSA PROPERTIES, INC.
By: /s/ Harold S. Handelsman
---------------------------------
Its: Vice President
Dated: November 13, 2000
USFS ACQUISITION CO.
By: /s/ Douglas Geoga
---------------------------------
Its: President
Page 19 of 21
<PAGE>
Dated: November 13, 2000
SDI-FRANCHISE INVESTOR, INC.
By: /s/ Douglas Geoga
---------------------------------
Its: President
Dated: November 13, 2000
HT-FRANCHISE INVESTMENT GROUP LLC
By: SDI-FRANCHISE INVESTOR, INC.,
ITS SOLE MEMBER
By: /s/ Douglas Geoga
---------------------------------
Its: President
Dated: November 13, 2000
/s/ Michael A. Leven
-------------------------------------
Michael A. Leven
Dated: November 13, 2000
/s/ Andrea Leven
-------------------------------------
Andrea Leven
Dated: November 13, 2000
/s/ Jonathan Leven
-------------------------------------
Jonathan Leven
Page 20 of 21
<PAGE>
Dated: November 13, 2000
/s/ Robert Leven
-------------------------------------
Robert Leven
Dated: November 13, 2000
/s/ Adam Leven
-------------------------------------
Adam Leven
Page 21 of 21
