avid hotelsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $11.1M – $16.8M
- 40th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 81
- 33rd pct Lodging
- SBA default
- 11.8%
- 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
50 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $11.1M – $16.8M including a $50K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "Historical performance of Mature Hotels" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 54/100. SBA loan charge-off rate of 11.8% across 1505 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Holiday Hospitality Franchising, LLC
- Parent company
- Six Continents Hotels, Inc.
- Ultimate parent
- InterContinental Hotels Group PLC
- 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
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.
- CEO
- Elie W. Maalouf
- Headquarters
- GA
- Founded
- 1989
- FDD year
- 2026
- States available
- 27
FDD Item 7 · 2026 filing · 23 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
- Better than avg vs category
- Liquid capital req'd
- $100K – $175K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · 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 | $5K |
| Inventory (initial) | $452K – $824K |
| Total fee load | 25.8% of rev |
Financial Performance
This brand's FDD disclosed "Historical performance of Mature Hotels" 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 avid hotels Compares
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 (yr3)
- +14.1%
- Net unit change last year
- 3-yr CAGR
- +28.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Transfers (3yr)
- 1
- Transfer rate
- 1.2%
- Owners selling to other franchisees
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 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).
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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 167
- Defaults
- 101
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.
Risk analysis
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.
Litigation (Item 3)
Three pending cases involving Holiday Hospitality Franchising LLC (franchisor): (1) Holiday v. Aspen Grand Hotels LLC et al. (N.D. Ga.) - franchisor seeking liquidated damages and unpaid fees for non-payment under Holiday Inn Express & Suites license agreement; defendants filed counterclaims alleging breach of agreement, breach of covenant of good faith and fair dealing, wrongful termination, and tortious interference; (2) WGI Palm Springs LLC et al. v. Holiday and Six Continents Hotels (C.D. Cal.) - franchisee alleging fraudulent inducement and misrepresentations by franchisor salesperson regarding hotel performance, property improvement plan, and financial incentives; claims include violations of California franchise investment law and unfair competition law; (3) BMK Realty LLC and Majid Koza v. Holiday (E.D. Mich.) - franchisee disputing enforceability of license agreement and guaranty, asserting breach of contract and fraudulent inducement; seeking declaratory judgment that guarantor was placeholder/nominal party and challenging validity of agreement amendments and liquidated damages provision.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Specific site |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 50 |
View Item 3 litigation summary
Three pending cases involving Holiday Hospitality Franchising LLC (franchisor): (1) Holiday v. Aspen Grand Hotels LLC et al. (N.D. Ga.) - franchisor seeking liquidated damages and unpaid fees for non-payment under Holiday Inn Express & Suites license agreement; defendants filed counterclaims alleging breach of agreement, breach of covenant of good faith and fair dealing, wrongful termination, and tortious interference; (2) WGI Palm Springs LLC et al. v. Holiday and Six Continents Hotels (C.D. Cal.) - franchisee alleging fraudulent inducement and misrepresentations by franchisor salesperson regarding hotel performance, property improvement plan, and financial incentives; claims include violations of California franchise investment law and unfair competition law; (3) BMK Realty LLC and Majid Koza v. Holiday (E.D. Mich.) - franchisee disputing enforceability of license agreement and guaranty, asserting breach of contract and fraudulent inducement; seeking declaratory judgment that guarantor was placeholder/nominal party and challenging validity of agreement amendments and liquidated damages provision.
Items 10, 11
Training & Operations
- Classroom training
- 460 hrs
- On-the-job training
- 264 hrs
- Training location
- On-site
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Approved F&B POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Approved F&B POS System
Item 20 · call current owners
Franchisee Contacts
80 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 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 63 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 risk score of 54 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.
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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.