FranchiseVerdict
ASCEND HOTEL COLLECTION logo
FV-00182·MODERATEStandard76

Ascend Hotel Collection

Lodging - Hotels & MotelsFranchising since 2008Website
Investment
$188K – $11.8M
10th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
5.0%
7th pct Hotels & Mote…
Units
177
74th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $188K – $11.8M including a $45K 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 33 loans (below the industry average).
  • 70 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

Legal entity
Choice Hotels International, Inc.
Incorporated in
Delaware
HQ
915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$1.5B
vs $1.4B prior year

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 ASCEND HOTEL COLLECTION unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $188K–$11.8M
Working capital
$
FDD reports $40K–$445K

Unlevered ROIC · per unit

1%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$6.2M
Payback
832 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees develop and operate upscale hotel properties under the Ascend brand, managing daily guest services, housekeeping, front desk operations, and revenue optimization. Franchisees must comply with strict brand standards, participate in destination marketing programs (subject to pending litigation), and remit 5% royalties monthly based on gross room revenues regardless of profitability.

CEO
Patrick S. Pacious
Founded
1963
FDD year
2024
States available
42

Item 7 · what it costs

The Vitals

Total investment
$188K – $11.8M
All-in to open one unit
Liquid capital
$40K – $445K
Cash you must have on hand
Franchise fee
$45K
Royalty
5.0%
Percentage of Gross Room Revenues · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

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

Total units
177
Opened
17
Last reporting year
Closed
14
Turnover rate
7.9%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+1.7%
Net unit change last year
3-yr CAGR
-0.6%
Compounded over last 3 years
2022
177+3
Franchised units
2023
174
Franchised units
2024
178
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 34 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 34 states
Not registered

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.

Total loans
33
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

63
Risk · 0-100
MODERATE63 / 100

HIGH RISK: Stagnant growth, pervasive litigation, high franchisor enforcement actions, and missing financial disclosures indicate a troubled system where franchisees face legal exposure and undisclosed profitability risks.

Score breakdown · what drove the 63 / 100 rating

  1. 01MINORMinimal system growth (1.7% YoY) with only 177 units suggests stagnation or contraction pressure
  2. 02MINORMultiple active class action lawsuits regarding destination marketing fees and discriminatory practices indicate systemic franchisor issues affecting profitability
  3. 03MINOR61 recovery actions initiated by franchisor in prior year suggests widespread franchisee defaults, payment disputes, or breach claims
  4. 04MINORNo Item 19 financial performance disclosure (Avg Revenue/Net Income not provided) prevents validation of unit economics
  5. 05MINORUnprotected territory exposes franchisees to direct brand competition and canibalization within same market
  6. 06MINORWide investment range ($187K–$11.8M) with unclear cost structure creates pricing opacity and unpredictable capital requirements
  7. 07MINOR5% royalty on gross room revenue (not net) penalizes franchisees during low-occupancy periods common in hospitality

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
No
Initial term
20 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
70
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Maryland

Item 11

Training & Operations

Classroom training
65 hrs
On-the-job training
22 hrs
POS system
choiceADVANTAGE
Operating tech stack

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

Locked
(660) 826-••••
MO
(616) 796-••••
MI
(617) 835-••••
MA

One-time purchase · CSV download · Validation questions included

FDD download

ASCEND HOTEL COLLECTION · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above