Ascend Hotel CollectionFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A ASCEND HOTEL COLLECTION franchise requires a total initial investment of $188K – $11.8M, including a $45K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 32 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $188K – $11.8M
- 10th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 177
- 39th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 32 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 178 to 177 over 3 years. Investigate why operators are leaving.
70 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $188K – $11.8M including a $45K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Average Occupancy Rate, ADR, RevPAR, Total Choice Enterprise Contribution" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 35/100. SBA loan charge-off rate of 0.0% across 32 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- DE
- 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
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 42
FDD Item 7 · 2024 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $45K | $45K | |
| Property Improvements | $78K | $1.8M | |
| Insurance | $3K | $88K | |
| Advertising | $3K | $40K | |
| Hardware to operate choiceADVANTAGE property management system | $4K | $11K | |
| choiceADVANTAGE Software License and Systems Training | $9K | $11K | |
| Opening Inventory of Supplies | $0 | $123K | |
| Onboarding, Sales, Hospitality Leadership Certification Fees, and Orientation Fees | $4K | $9K | |
| Mandatory On-Premise Plaque | $200 | $750 | |
| Pre-Opening Photography | $4K | $5K | |
| Working Capital Required Before Operations Begin | $15K | $40K | |
| Additional Funds for 3-Month Initial Period | $25K | $50K | |
| Total initial investment | $188K | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $188K – $11.8M
- Better than avg vs category
- Liquid capital req'd
- $40K – $445K
- Better than avg vs category
- Franchise fee
- $15K – $45K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $778 |
| Transfer fee | $45K |
| Inventory (initial) | $0 – $123K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Average Occupancy Rate, ADR, RevPAR, Total Choice Enterprise Contribution" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Ascend Hotel Collection Compares
Unit growth
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
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 15
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.7%
- Franchisor-initiated terminations
- Ceased ops
- 8.5%
- Units that stopped operating
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 32
- Loan volume
- $95.3M
- Median loan
- $3.0M
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 32 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 35 / 100 rating
- 01MINORMinimal system growth (1.7% YoY) with only 177 units suggests stagnation or contraction pressure
- 02MINORMultiple active class action lawsuits regarding destination marketing fees and discriminatory practices indicate systemic franchisor issues affecting profitability
- 03MINOR61 recovery actions initiated by franchisor in prior year suggests widespread franchisee defaults, payment disputes, or breach claims
- 04MINORNo Item 19 financial performance disclosure (Avg Revenue/Net Income not provided) prevents validation of unit economics
- 05MINORUnprotected territory exposes franchisees to direct brand competition and canibalization within same market
- 06MINORWide investment range ($187K–$11.8M) with unclear cost structure creates pricing opacity and unpredictable capital requirements
- 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 60 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 70 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 65 hrs
- On-the-job training
- 22 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
100 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ASCEND HOTEL COLLECTION · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ASCEND HOTEL COLLECTION franchise?
The total investment to open a ASCEND HOTEL COLLECTION franchise ranges from $188K – $11.8M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ASCEND HOTEL COLLECTION franchise owners earn?
ASCEND HOTEL COLLECTION does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is ASCEND HOTEL COLLECTION's franchise failure rate?
Based on SBA 7(a) loan data, ASCEND HOTEL COLLECTION has a charge-off rate of 0.0% across 32 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many ASCEND HOTEL COLLECTION franchise locations are there?
As of their most recent FDD filing, ASCEND HOTEL COLLECTION has 177 total units in the United States, including 178 franchised units and 0 company-owned units. 17 new units were opened in the latest reporting year.
Is ASCEND HOTEL COLLECTION a good franchise to buy?
FranchiseVerdict rates ASCEND HOTEL COLLECTION as a A-grade franchise with a risk score of 35 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.