MICROTEL - FDD UFOC ITEM 4 Detail

ITEM 4 . BANKRUPTCY

Our Vice President, Franchise Services and Operations, Neil B. Morris, filed a voluntary petition for personal bankruptcy under Chapter 7 of the U.S. Bankruptcy Code on September 5, 2000, in the U.S. Bankruptcy Court of South Carolina (Case No. 00-07779-WB). On January 12, 2001, the court entered the Order approving the discharge of the debts of Mr. Morris. Other than this one action, no person previously identified in Items 1 or 2 of thi3 Offering Circular⁶²⁷

Except as described above, neither we: a parent, predecessor, affiliate, officer, or general partner of ours; nor any other person whn will have management responsibility relating to the sale or nneration of the franchises offered by this Disclosure Document has been involved as a debtor in proceedings under the U.S. Bankruptcy Code ( or comparable foreign Ihw^ that munt⁶³¹hankruptcy law requiredto⁶³² be disclosed in this Item.