Bottom line
- Total investment — including a $85K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System growing at 30.0% CAGR over 3 years with 26 total units — strong expansion trajectory.
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 Canopy by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
6%
Below typical band (30–60%)
Overview
About
Franchisees operate upscale, boutique-style hotel properties under the Canopy by Hilton brand, managing daily guest services, housekeeping, front desk operations, and food/beverage offerings. They are responsible for maintaining brand standards, collecting gross rooms revenue (subject to 5% royalty), and ensuring compliance with Hilton's operating requirements and ADA accessibility standards.
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 · 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 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
Canopy presents moderate-to-cautionary risk due to litigation history, undisclosed financial performance, small system size with modest growth, unprotected territory, and lack of Item 19 profitability data needed to justify the $85,000 franchise fee and 5% royalty structure.
Score breakdown · what drove the 64 / 100 rating
- 01HIGHActive pending litigation regarding guest fees and franchise termination suggests operational/contractual disputes and potential franchisor enforcement issues
- 02MINORNo average revenue or net income disclosure (Item 19) prevents accurate ROI assessment and profitability validation
- 03MEDModest unit growth of 13% YoY with only 26 total units indicates limited scale and market traction for an established Hilton brand
- 04MINORUnprotected territory creates direct competition risk from other Canopy franchisees in same markets
- 05MINORHistory of breach of contract settlements and ADA compliance consent decrees suggests systemic operational or compliance challenges
- 06MINOR23-year term is lengthy and limits exit flexibility if brand underperforms or franchisor relationship deteriorates
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
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Canopy by Hilton · FDD (2023) PDF