avid hotels
Formerly known as Holiday Inn
Bottom line
- Total investment $11.1M – $16.8M including a $50K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 189 loans (below the industry average).
- 50 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 avid hotels unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees own/operate limited-service midscale hotel properties (typically 100–150 rooms) under the Avid Hotels brand, managing guest operations, housekeeping, maintenance, and front-desk services while adhering to brand standards. Daily operations include revenue management, staffing, vendor relationships, and compliance with franchisor reporting and systems requirements. Franchisees generate revenue primarily through room bookings and ancillary services (parking, breakfast, etc.) while paying 5% royalties on gross room revenue to Holiday Hospitality Franchising.
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 · 32 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
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.
Score breakdown · what drove the 54 / 100 rating
- 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
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
80 numbers
One-time purchase · CSV download · Validation questions included
FDD download
avid hotels · FDD (2026) PDF