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F85/100FDD 2026

Apartment Collection by Hilton — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

14 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
14
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
3 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New York
State whose law governs disputes — relevant if you're not based there

What drove the 85/100 rating

Risk Score Breakdown

  1. 01MINORZero existing franchise units with unknown growth trajectory indicates a nascent or failed concept with no proven franchisee success
  2. 02HIGH14 active litigation matters including 4 pending antitrust class actions suggest systemic compliance issues and potential franchisor misconduct
  3. 03HIGHGoing Concern = False indicates Hilton's accounting auditors have substantial doubt about the brand's ability to continue operations
  4. 04MINORNo average revenue or net income disclosure (Item 19) prevents validation of investment viability and ROI claims
  5. 05MINORUnprotected territory combined with 5% royalty on rooms revenue creates direct competition risk and revenue vulnerability
  6. 06MINORRecent 2025 collection suits and franchise termination disputes suggest franchisor-franchisee relationship deterioration
  7. 07HIGHPending antitrust litigation over software information-sharing implies potential price-fixing or anti-competitive practices affecting franchisee operations

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.