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B63/100FDD 2025
Boarders Inn & Suites by Cobblestone — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Wisconsin
State whose law governs disputes — relevant if you're not based there
What drove the 63/100 rating
Risk Score Breakdown
- 01MINORSystem declining 6.2% YoY with only 15 units suggests weak growth trajectory and potential systemic issues
- 02MINORNo Item 19 financial disclosure (Avg Revenue/Net Income) prevents accurate ROI assessment and suggests franchisor may lack positive unit economics to share
- 03MINORExtremely wide investment range ($99,999–$16.9M) indicates inconsistent unit performance or unclear capital requirements
- 04MINORDual royalty structure ($2.25/room/day OR 5% of GRR) creates ambiguity and potential for franchisor revenue optimization at franchisee expense
- 05MINORModest $45,000 franchise fee relative to $99,999+ startup costs suggests thin margins or high pre-opening capital needs
- 06HIGHGoing Concern = False is ambiguous; clarify if franchisor has financial stability concerns or is merely not flagged by auditors
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.