<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
AMENDMENT NO. 1
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)
September 29, 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 24 Pages
-------------------------------------------------------------------------------
1 NAME 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 OF A GROUP* (a) /X/
(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
2,099,775
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,609,228
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,609,228
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.2%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
-------------------------------------------------------------------------------
SCHEDULE 13D
<PAGE>
CUSIP No. 902 956 30 9 Page 3 of 24 Pages
-------------------------------------------------------------------------------
1 NAME 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 OF A GROUP* (a) /X/
(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
22,447
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
22,447
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
22,447
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
less than 1%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
SCHEDULE 13D
<PAGE>
CUSIP No. 902 956 30 9 Page 4 of 24 Pages
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
SDI, Inc.
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(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 8 SHARED VOTING POWER
SHARES
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 BOX 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 24 Pages
-------------------------------------------------------------------------------
1 NAME 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 OF A GROUP* (a) /X/
(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
0
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,501,675
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,501,675
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.9%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 6 of 24 Pages
-------------------------------------------------------------------------------
1 NAME 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 OF A GROUP* (a) /X/
(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
551,470
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 1,832,560
BENEFICIALLY --------------------------------------------------
OWNED BY
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 351,470
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
200,000
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,384,030
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.7%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 7 of 24 Pages
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Andrea Leven
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,003,833
OWNED BY --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 803,833
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
200,000
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,003,833
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.5%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 8 of 24 Pages
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jonathan Leven
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(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
389,885
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 233,218
PERSON WITH --------------------------------------------------
10 SHARED DISPOSITIVE POWER
156,667
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
389,885
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9 Page 9 of 24 Pages
-------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Robert Leven
-------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(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
390,385
--------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
REPORTING 233,718
PERSON WITH --------------------------------------------------
10 SHARED DISPOSITIVE POWER
156,667
-------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
390,385
-------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
-------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
-------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
-------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9
Page 10 of 24 Pages
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Adam Leven
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) /X/
(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
334,601
----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES 0
BENEFICIALLY ----------------------------------------------------------------
OWNED BY 9 SOLE DISPOSITIVE POWER
EACH
REPORTING 177,935
PERSON WITH ----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
156,666
----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
334,601
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
<PAGE>
SCHEDULE 13D
CUSIP No. 902 956 30 9
Page 11 of 24 Pages
1 NAME 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 OF A GROUP* (a) /X/
(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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY ----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
--------------------------------------------------------------------------------
12 CHECK BOX 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 24 Pages
1 NAME 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 OF A GROUP* (a) /X/
(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
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
0
----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY ----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
----------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
0
--------------------------------------------------------------------------------
12 CHECK BOX 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 ("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.
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") are 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.
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
Page 13 of 24
<PAGE>
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.
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
Page 14 of 24
<PAGE>
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 will fulfill this obligation by making funds available through one or
more affiliates or intermediaries, to HT-Franchise, which will use 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
Termination of the Recapitalization Agreement. On June 2, 2000 SDI,
HSA and Meridian entered into a Recapitalization Agreement with USFS (the
"Recapitalization Agreement") pursuant to which USFS was to commence a tender
offer to purchase up to an aggregate of 8,666,666 but not less than
3,000,000, shares of Common Stock and SDI was to purchase 75,000 shares of
preferred stock of USFS for an aggregate of $75,000,000. By mutual
agreement, the Recapitalization Agreement has been terminated.
Execution of the 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 has agreed to commence a
tender offer to purchase all of the outstanding Common Stock of USFS for
$5.00 per share (the "Offer"), subject to the condition that there be
tendered and not withdrawn the number of shares of Common Stock that,
together with the shares of Common Stock owned by Meridian, HSA and their
affiliates, represents a majority of the outstanding shares of Common Stock
(the "Minimum Condition"). Upon satisfaction of the Minimum Condition, and
subject to receipt of any required stockholder approval, the Reporting
Entities expect Newco to merge into USFS. Upon consummation of the merger,
the shareholders who elected not to accept the Offer will receive $5.00 for
their shares 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.
In connection with the Acquisition Agreement, the following
agreements were simultaneously executed:
(a) an Exchange Agreement by and among Newco, Meridian, HSA and the
Leven Stockholders (the "Exchange Agreement"), which provides that
if Newco purchases a number of shares of Common Stock that would
satisfy the Minimum Condition,
Page 15 of 24
<PAGE>
Meridian, HSA and the Leven Stockholders will exchange an
aggregate of 2,992,222 shares of Common Stock for an equal number
of shares of common stock in Newco; and
(b) an Agreement by and among Newco, Meridian and Neal Aronson (the
"Aronson Agreement"), pursuant to which Neal Aronson agreed tender
and not withdraw all of his shares of Common Stock other than
589,865 restricted shares, to Newco prior to the expiration date
of the Offer.
The Reporting Entities acquired beneficial ownership of the Common
Stock held by Neal Aronson because, pursuant to the terms of the Aronson
Agreement, Newco and Meridian share investment power with respect to such
shares. The complete text of the Acquisition Agreement and all of the
documents to which USFS is a party to in connection therewith have been
attached as an exhibit to the Current Report on Form 8-K filed by USFS on
September 20, 2000 and are hereby incorporated herein by reference.
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 and Michael A.
Leven. Immediately following the merger, Newco expects it will add Steven
Romaniello to the board of directors.
ITEM 5. INTERESTS IN SECURITIES OF ISSUER
All information regarding beneficial ownership was provided by
USFS.
(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 is 7,019,569 representing 35% of the
outstanding Common Stock, broken down as follows: (i) 3,609,228
shares of Common Stock, of which 2,099,775 shares of Class A
Common Stock Meridian shares investment power with Newco pursuant
to the Exchange Agreement, and 1,509,453 shares of Class B Common
Stock Meridian shares investment power with Newco and Neal Aronson
pursuant to the Aronson Agreement; (ii) 22,447 shares of Class A
Common Stock held by HSA, all of which HSA shares investment power
with Newco pursuant to the Exchange Agreement, (iii) 2,384,030
shares of Common Stock, of which 351,470 shares of Class B Common
Stock Michael A. Leven solely holds, 233,032 shares of Class A
Common Stock and 770,801 shares of Class B Common Stock Michael A.
Leven shares voting power with Andrea Leven, 111,347 shares of
Class A Common Stock and 311,007 shares of Class B Common Stock
Michael A. Leven shares voting power with Neal Aronson, 406,373
shares of Class A Common Stock Michael A. Leven shares voting
power with other members of USFS management, and 123,805 shares of
Class A Common Stock and 76,195 shares of Class B Common Stock
Michael A. Leven shares investment power with Newco pursuant to
the Exchange
Page 16 of 24
<PAGE>
Agreement, (iv) 1,003,833 shares of Common Stock, of which 233,032
shares of Class A Common Stock and 770,801 shares of Class B
Common Stock Andrea Leven shares voting power with Michael A.
Leven, and 200,000 shares of Class A Common Stock Andrea Leven
shares investment power with Newco pursuant to the Exchange
Agreement, (v) 389,885 shares of Class A Common Stock, of which
231,718 shares Jonathan Leven solely holds, 1500 shares Jonathan
Leven has the right to acquire upon the exercise of options, and
156,667 shares Jonathan Leven shares investment power with Newco
pursuant to the Exchange Agreement, (vi) 390,385 shares of Class A
Common Stock, of which 231,718 shares Robert Leven solely holds,
2000 shares Robert Leven has the right to acquire upon the
exercise of options, and 156,667 shares Robert Leven shares
investment power with Newco pursuant to the Exchange Agreement,
(vii) 334,601 shares of Class A Common Stock, of which 177,935
shares Adam Leven solely holds, and 156,666 shares Adam Leven
shares investment power with Newco pursuant to the Exchange
Agreement, and (viii) 4,501,675 shares of Common Stock, of which
2,916,027 shares of Class A Common Stock Newco shares investment
power with Meridian, HSA and the Leven Stockholders pursuant to
the Exchange Agreement, 76,195 shares of Class B Common Stock
Newco shares investment power with Michael A. Leven pursuant to
the Exchange Agreement, and 1,509,453 shares of Class B Common
Stock Newco shares investment power with Neal Aronson and Meridian
pursuant to the Aronson Agreement. SDI, SDI-Franchise and
HT-Franchise 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 - 2,099,775 shares
of Class A Common Stock;
(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 -
2,099,775 shares of Class A Common Stock held by Meridian,
which Meridian shares the power to dispose or direct the
disposition with Newco pursuant to the Exchange Agreement,
and 1,509,453 shares of Class B Common Stock which Meridian
shares the power to dispose or direct the disposition with
Newco and Neal Aronson pursuant to the Aronson Agreement.
With respect to HSA:
(i) Sole power to vote or to direct the vote - 22,447 shares of
Class A Common Stock;
(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 - 22,447
shares of Class A Common Stock held by HSA, which HSA
shares the power to dispose or direct the disposition with
Newco pursuant to the Exchange Agreement.
Page 17 of 24
<PAGE>
With respect to Newco:
(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 to direct the disposition - 0;
(iv) Shared power to dispose or to direct the disposition -
2,916,027 shares of Class A Common Stock which Newco shares
investment power with Meridian, HSA and the Leven
Stockholders pursuant to the Exchange Agreement, 76,195
shares of Class B Common Stock which Newco shares
investment power with Michael A. Leven pursuant to the
Exchange Agreement, and 1,509,453 shares of Class B Common
Stock which Newco shares investment power with Neal Aronson
and Meridian pursuant to the Aronson Agreement.
With respect to Michael A. Leven:
(i) Sole power to vote or direct the vote - 123,805 shares of
Class A Common Stock and 427,665 shares of Class B Common
Stock;
(ii) Shared power to vote or direct the vote - 233,032 shares of
Class A Common Stock and 770,801 shares of Class B Common
Stock which Michael A. Leven shares voting power with
Andrea Leven, 111,347 shares of Class A Common Stock and
311,007 shares of Class B Common Stock which Michael A.
Leven shares voting power with Neal Aronson, and 406,373
shares of Class A Common Stock which Michael A. Leven
shares voting power with other members of USFS management
(iii) Sole power to dispose or direct the disposition - 351,470
shares of Class B Common Stock;
(iv) Shared power to dispose or direct the disposition - 123,805
shares of Class A Common Stock and 76,195 shares of Class B
Common Stock which Michael A. Leven shares the power to
dispose or direct the disposition with Newco pursuant to
the Exchange Agreement.
With respect to Andrea Leven:
(i) Sole power to vote or direct the vote - 0;
(ii) Shared power to vote or direct the vote - 233,032 shares of
Class A Common Stock and 770,801 shares of Class B Common
Stock which Andrea Leven shares voting power with Michael
A. Leven;
(iii) Sole power to dispose or direct the disposition - 33,032
shares of Class A Common Stock and 770,801 shares of Class
B Common Stock;
(iv) Shared power to dispose or direct the disposition - 200,000
shares of Class A Common Stock which Andrea Leven shares
the power to dispose or direct the disposition with Newco
pursuant to the Exchange Agreement.
With respect to Jonathan Leven:
(i) Sole power to vote or direct the vote - 388,385 shares of
Class A Common Stock and 1500 shares of Class A Common
Stock which Jonathan Leven has the right to acquire upon
the exercise of options;
(ii) Shared power to vote or direct the vote - 0;
Page 18 of 24
<PAGE>
(iii) Sole power to dispose or direct the disposition - 231,718
shares of Class A Common Stock and 1500 shares of Class A
Common Stock which Jonathan Leven has the right to acquire
upon the exercise of options;
(iv) Shared power to dispose or direct the disposition - 156,667
shares of Class A Common Stock which Jonathan Leven shares
the power to dispose or direct the disposition with Newco
pursuant to the Exchange Agreement.
With respect to Robert Leven:
(i) Sole power to vote or direct the vote - 388,385 shares of
Class A Common Stock and 2000 shares of Class A Common
Stock which Robert Leven has the right to acquire upon the
exercise of options;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 231,718
shares of Class A Common Stock and 2000 shares of Class A
Common Stock which Robert Leven has the right to acquire
upon the exercise of options;
(iv) Shared power to dispose or direct the disposition - 156,667
shares of Class A Common Stock which Robert Leven shares
the power to dispose or direct the disposition with Newco
pursuant to the Exchange Agreement.
With respect to Adam Leven:
(i) Sole power to vote or direct the vote - 334,601 shares of
Class A Common Stock;
(ii) Shared power to vote or direct the vote - 0;
(iii) Sole power to dispose or direct the disposition - 177,935
shares of Class A Common Stock;
(iv) Shared power to dispose or direct the disposition - 156,666
shares of Class A Common Stock which Adam Leven shares the
power to dispose or direct the disposition with Newco
pursuant to the Exchange Agreement.
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.
Page 19 of 24
<PAGE>
(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.
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.
Not Applicable.
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. In connection with the execution of the
Acquisition Agreement and the Exchange Agreement, Meridian, HSA and the Leven
Stockholders agreed to enter into a Stockholders Agreement with respect to the
shares of common stock in Newco they purported to own upon satisfaction of the
Minimum Condition and consummation of the Exchange Agreement ("Stockholders
Agreement"). HT-Franchise will execute the Stockholders Agreement in place of
SDI. 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. The
complete text of the Stockholders Agreement is attached as an appendix to the
Exchange Agreement.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS
<TABLE>
<S> <C>
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.
Page 20 of 24
<PAGE>
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.
Exhibit 4 Aronson Agreement incorporated by reference from Exhibit 99.2 to
the Current Report on Form 8-K of USFS filed 9/20/00.
</TABLE>
Page 21 of 24
<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: October 2, 2000
MERIDIAN ASSOCIATES, L.P.
By: MERIDIAN INVESTMENT, INC.,
ITS GENERAL PARTNER
By: /s/ Harold S. Handelsman
------------------------------
Its: Vice President
Dated: October 2, 2000
SDI, INC.
By: /s/ Harold S. Handelsman
------------------------------
Its: Vice President
Dated: October 2, 2000
HSA PROPERTIES, INC.
By: /s/ Harold S. Handelsman
------------------------------
Its: Vice President
Dated: October 2, 2000
USFS ACQUISITION CO.
By: /s/ Douglas Geoga
------------------------------
Its: President
Page 22 of 24
<PAGE>
Dated: October 2, 2000
SDI-FRANCHISE INVESTOR, INC.
By: /s/ Douglas Geoga
------------------------------
Its: President
Dated: October 2, 2000
HT-FRANCHISE INVESTMENT GROUP LLC
By: SDI-FRANCHISE INVESTOR, INC.,
ITS SOLE MEMBER
By: /s/ Douglas Geoga
------------------------------
Its: President
Dated: October 2, 2000
Michael A. Leven
/s/ Michael A. Leven
---------------------------
Dated: October 2, 2000
Andrea Leven
/s/ Andrea Leven
---------------------------
Dated: October 2, 2000
Jonathan Leven
/s/ Jonathan Leven
---------------------------
Page 23 of 24
<PAGE>
Dated: October 2, 2000
Robert Leven
/s/ Robert Leven
---------------------------
Dated: October 2, 2000
Adam Leven
/s/ Adam Leven
---------------------------
Page 24 of 24
