Bottom line
- Total investment $295K – $10.5M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 20 loans (below the industry average).
- 12 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one AmericInn unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
AmericInn franchisees operate mid-scale hotel properties, managing daily guest services, housekeeping, front desk operations, and revenue optimization. Franchisees are responsible for property maintenance, staff management, and local marketing while adhering to brand standards and paying 5% of gross revenues in royalties. The business model depends heavily on revenue management software and destination marketing fee compliance.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AmericInn presents HIGH RISK due to going concern status, extensive litigation including antitrust/fraud allegations, stagnant unit growth, absent financial disclosures, and evidence of franchisor-franchisee disputes — not suitable for risk-averse investors.
Score breakdown · what drove the 63 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor's financial viability is questioned
- 02HIGHExtensive litigation portfolio including price-fixing, antitrust, fraud, and state franchise act violations creates legal and reputational risk
- 03MINORMinimal unit growth (1.4% YoY) with only 218 units suggests stagnant or contracting system
- 04MINORNo Item 19 disclosure (Avg Revenue/Net Income) prevents financial performance validation and indicates poor unit economics transparency
- 05HIGHHigh litigation exposure against franchisees for outstanding sums suggests collection problems and franchisor-franchisee relationship deterioration
- 06HIGHMultiple consumer fraud allegations (resort fees, call recording) expose franchisees to regulatory scrutiny and brand reputation damage
- 07MINORWide investment range ($295K–$10.4M) with no average revenue data creates uncertainty about ROI and comparable performance
- 08MINORPrice-fixing allegations through revenue management software could trigger regulatory penalties affecting all franchisees' operations
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
AmericInn · FDD (2024) PDF