avid hotels Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
avid hotels is an IHG midscale, limited-service hotel franchise offering reliable, no-frills stays. Franchisees own and operate individual properties, running rooms and guest services on IHG's systems.
FranchiseVerdict summary · 2026
A avid hotels franchise requires a total initial investment of $11.1M – $16.8M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 11.8% charge-off rate across 1,505 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $11.1M – $16.8M
- 45th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 81
- 44th pct Lodging
- SBA charge-off
- 11.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $11.1M – $16.8M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 21 audited statements are for Holiday Hospitality Franchising, LLC (the franchisor), audited by PricewaterhouseCoopers LLP, years ended Dec 31, 2025/2024/2023. Figures are stated in whole US dollars (not thousands). FY2025 total revenues $38,788,364 comprise franchise royalty fees $37,179,522, franchise royalty fees from affiliate $57,662, and OLCC fees $1,551,180 (other_revenue). Balance sheet reconciles: total assets $1,011,118,965 = total liabilities $122,195,307 + member's equity $888,923,658. Net income $69,768,979 exceeds operating income because of $30.5M interest income from an affiliate line of credit. yr1=2025, yr2=2024.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 11.8% across 1505 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL14 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
Corporate structure & franchisor financials
- Legal entity
- Holiday Hospitality Franchising, LLC
- Parent company
- Six Continents Hotels, Inc. (SCH)
- Ultimate parent
- InterContinental Hotels Group PLC
- Predecessor
- Holiday Hospitality Franchising, Inc. (f/k/a Holiday Inns Franchising, Inc.)
- Prior franchisor entity
- CEO title
- Chief Executive Officer, InterContinental Hotels Group, PLC
- Elie W. Maalouf
- Incorporated in
- DE
- HQ
- Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $38.8M
- vs $39.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Six Continents Limited
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1989
- FDD year
- 2026
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost runs 42% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee | $50K | $50K | |
| PIP Feenot refundable | $0 | $10K | |
| Landnot refundable | — | — | |
| Building Constructionnot refundable | $9.4M | $14.0M | |
| Furniture, Fixtures & Equipmentnot refundable | $897K | $1.2M | |
| Operating Supplies & Equipmentnot refundable | $119K | $155K | |
| PMS Equipmentnot refundable | $22K | $31K | |
| Guest Internet Access (IHG Connect) - Hardwarenot refundable | $24K | $49K | |
| Guest Internet Access (IHG Connect) - Bandwidthnot refundable | $450 | $2K | |
| Entertainment, Security System and Other Technology Systems Equipment and Feesnot refundable | $129K | $158K | |
| Next-Gen Payment Solutionnot refundable | $223 | $794 | |
| Training Expensesnot refundable | $3K | $3K | |
| Opening Date Extension Feenot refundable | $0 | $5K | |
| Market Feasibility Studynot refundable | $0 | $30K | |
| License and Permitsnot refundable | — | — | |
| Professional Feesnot refundable | $282K | $698K | |
| Security Depositsnot refundable | $3K | $15K | |
| Insurancenot refundable | $46K | $197K | |
| Hotel Photographynot refundable | $4K | $5K | |
| Primary Identification Signnot refundable | $25K | $50K | |
| Total initial investment | $11.1M | $16.8M |
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
- $11.1M – $16.8M
- Middle of category vs category
- Liquid capital req'd
- $100K – $175K
- Top 40% of category vs category
- Franchise fee
- $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 25.8%
- 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 | $17 |
| Training fee | $3K |
| Transfer fee | $25K |
| Inventory (initial) | $119K – $155K |
| Total fee load | 25.8% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
avid hotels did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one avid hotels unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 21 audited statements are for Holiday Hospitality Franchising, LLC (the franchisor), audited by PricewaterhouseCoopers LLP, years ended Dec 31, 2025/2024/2023. Figures are stated in whole US dollars (not thousands). FY2025 total revenues $38,788,364 comprise franchise royalty fees $37,179,522, franchise royalty fees from affiliate $57,662, and OLCC fees $1,551,180 (other_revenue). Balance sheet reconciles: total assets $1,011,118,965 = total liabilities $122,195,307 + member's equity $888,923,658. Net income $69,768,979 exceeds operating income because of $30.5M interest income from an affiliate line of credit. yr1=2025, yr2=2024.
Includes company-owned outlets
- Item 19 type
- operational metrics
- Sample size
- 50
- vs category median 99
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 25.8% — above the Lodging average of 10.4%.
Disclosure
Item 19 reports operational metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 28.6% CAGR over 3 years across 81 units — operators are staying and new ones are joining.
Multi-unit rate
Only 10% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How avid hotels Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 81
- Opened
- 10
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 10.0%
- Net growth (3-yr)
- +28.6%
- Net unit change over 3 years
- 3-yr CAGR
- +28.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 1.2%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 1,505
- Loan volume
- $3.3B
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- 11.8%
- 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)
- 88.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 167
- Defaults
- 101
- Typical loan rate
- 7.1%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand above franchise avg ↑
- Jobs supported
- 118
- 0.4 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 83% went to startups / new businesses, 17% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing avid hotels franchisees
Showing 3 of 167 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into avid hotels's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 4-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 11.8% — 26% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Avid Hotels presents elevated risk due to undisclosed financial performance, extensive litigation, massive capital requirements, and absence of territorial protection—making ROI validation impossible before $11M+ investment.
Litigation (Item 3)
Holiday is defendant in class action suits (5 consolidated) and multiple individual licensee suits involving breach of contract, wrongful termination, and kickback allegations. Holiday is plaintiff in suits seeking liquidated damages from licensees who failed to pay fees or complete construction.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MEDMassive capital requirement ($11.1M–$16.8M) with no disclosed average revenue or net income to validate ROI
- 02HIGHExtensive litigation history including class actions, fee disputes, and data security breaches suggests systemic operational/compliance issues
- 03MINORNo Item 19 financial performance disclosure prevents franchisees from assessing realistic profitability expectations
- 04MINORNo protected territory in competitive midscale hotel segment increases cannibalization risk
- 05MINOR5% royalty on gross rooms revenue (not net) creates fixed burden regardless of profitability
- 06MINOR14.1% YoY unit growth is modest for a growing franchise and may indicate saturation or franchisee recruitment challenges
- 07HIGH20-year term is exceptionally long given litigation exposure and lack of financial transparency
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 25.8% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | N/A |
| Jury trial waiver | No |
| Governing law | GA |
| Litigation count | 14 |
View Item 3 litigation summary
Holiday is defendant in class action suits (5 consolidated) and multiple individual licensee suits involving breach of contract, wrongful termination, and kickback allegations. Holiday is plaintiff in suits seeking liquidated damages from licensees who failed to pay fees or complete construction.
Items 10, 11
Training & Operations
- Classroom training
- 460 hrs
- On-the-job training
- 24 hrs
- Training location
- Your Hotel, Atlanta GA, or Virtual
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Holiday
- Franchisor financing
- Not offered
- Item 10
- POS system
- HotelKey Cloud PMS / OPERA Cloud
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HotelKey Cloud PMS / OPERA Cloud
Item 20 · call current owners
Franchisee Contacts
112 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
avid hotels · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a avid hotels franchise?
The total investment to open a avid hotels franchise ranges from $11.1M – $16.8M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do avid hotels franchise owners earn?
avid hotels 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 Item 19 in the avid hotels FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the avid hotels FDD and qualifies whose outlets they describe.
What is avid hotels's franchise failure rate?
Based on SBA 7(a) loan data, avid hotels has a charge-off rate of 11.8% across 1,505 loans, meaning 11.8% 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 avid hotels franchise locations are there?
As of their most recent FDD filing, avid hotels has 81 total units in the United States, including 81 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.
Is avid hotels a good franchise to buy?
FranchiseVerdict rates avid hotels as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), 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.