Canopy by Hilton Franchise Cost, Revenue & Review 2026
- Investment
- $57.3M – $141.9M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Canopy by Hilton is an upscale lifestyle hotel franchise with locally inspired, design-forward properties. Franchisees own and operate the hotels, managing guest services, food and beverage, and brand standards.
FranchiseVerdict summary · 2026
A Canopy by Hilton franchise requires a total initial investment of $57.3M – $141.9M, including a $85K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $57.3M – $141.9M
- 67th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 26
- 31st pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $57.3M – $141.9M including a $85K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (3 opened, 0 closed); 10 signed but not yet open (Item 20).
- GROWTHSystem growing at 30.0% CAGR over 3 years with 26 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- FDD Item 1, page 9 of the 2023 FDD
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- FDD Item 1, page 9 of the 2023 FDD
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- CohnReznick LLP (Tysons Corner, Virginia)
- Audited financials
- Franchisor revenue
- $1.2B
- vs $883.3M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 9
17 other brands on this site name Hilton Worldwide Holdings Inc. as parent or ultimate parent in their own FDD.
- Apartment Collection by HiltonC
- Curio Collection by HiltonB
- DoubleTree by HiltonA
- Embassy Suites by HiltonB
- Graduate by HiltonB
- Hampton by HiltonA
- Hilton Garden InnA
- Home2 Suites by HiltonA
- Homewood Suites by HiltonA
- LXRB
- Motto by HiltonB
- Outset Collection by HiltonC
- Project Q by HiltonC
- Tapestry Collection by HiltonB
- Tempo by HiltonC
- Tru by HiltonA
- Undergraduate by HiltonC
Grouped by the owner's name as each filing prints it (this page: the 2023 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 1020% above the typical lodging franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $85K | $85K |
| Working capital (3–6 mo) | $900K | $1.3M |
| Equipment, build-out, other | $56.3M | $140.5M |
| Total initial investment | $57.3M | $141.9M |
Source: Canopy by Hilton 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $57.3M – $141.9M
- Bottom third — review vs category
- Liquid capital req'd
- $900K – $1.3M
- Middle of category vs category
- Franchise fee
- $85K
- Middle of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $1K |
| Training fee | $5K |
| Transfer fee | $150K |
| Renewal fee | $85K |
| Inventory (initial) | $1.1M – $2.3M |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Canopy by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Canopy by Hilton unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 9.0% (near the Lodging median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System expanding at 30.0% CAGR over 3 years across 26 units — operators are staying and new ones are joining.
Multi-unit rate
Only 1% 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 medians
How Canopy by Hilton Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 3
- 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +30.0%
- Net unit change over 3 years
- 3-yr CAGR
- +30.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 10
- 0.38 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 11.5%
- Owners selling to other franchisees
- Termination rate
- 15.4%
- Franchisor-initiated terminations
- Ceased ops
- 15.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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.
Where the owners are · Item 20 owner list
22 current owners across 21 states.
- TX 2
- AZ 1
- CA 1
- DC 1
- FL 1
- GA 1
- IL 1
- LA 1
- MA 1
- MD 1
- ME 1
- MI 1
- +9 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $153K
- Median loan
- $153K
- average
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
2 pending actions: Nebraska AG re resort fee disclosures; franchisee breach of contract (Destin Platinum). 6 concluded actions including Starwood trade secret dispute (settled $75M), ADA consent decree, DOJ antitrust, Portland Hotel counterclaim (settled), San Pedro Inn wrongful termination (settled), Hawaii class action resort fees (settled $178K).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CohnReznick LLP (Tysons Corner, Virginia)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 figures are from the audited consolidated financial statements of Hilton Franchise Holding LLC (the franchisor), as of/for the year ended December 31, 2022, stated in thousands and converted to whole US dollars (x1000). Balance sheet reconciles: total assets 1,163,908k = total liabilities 501,845k + member's equity 662,063k. Net worth = total member's equity. Total revenues 2022 = 1,229,465k (royalty 1,184,827k + franchise sales/change-of-ownership fees 39,881k + termination fees and other 4,757k); 2021 = 883,284k. other_revenue reflects the 'Franchise termination fees and other' line (4,757k). Auditor report dated March 16, 2023 from Tysons Corner, Virginia; CPA firm name not present in the extracted text.
ⓘ 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: Yes
Score breakdown · what drove the 55 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | Fairfax County, VA (Puerto Rico only; seat New York, NY) |
| Jury trial waiver | No |
| Governing law | NY |
| Litigation count | 8 |
View Item 3 litigation summary
2 pending actions: Nebraska AG re resort fee disclosures; franchisee breach of contract (Destin Platinum). 6 concluded actions including Starwood trade secret dispute (settled $75M), ADA consent decree, DOJ antitrust, Portland Hotel counterclaim (settled), San Pedro Inn wrongful termination (settled), Hawaii class action resort fees (settled $178K).
Items 10, 11
Training & Operations
- Classroom training
- 112 hrs
- On-the-job training
- 9 hrs
- Training location
- Virtual/Online/On-site (varies by course)
- Ongoing training
- Required
- Field support
- 20 hrs/yr
- On-site visits per year
- Site selection
- Franchisee (franchisor not obligated to assist)
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Canopy by Hilton franchise?
The total investment to open a Canopy by Hilton franchise ranges from $57.3M – $141.9M, with an initial franchise fee of $85K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Canopy by Hilton franchise owners earn?
Canopy by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Canopy by Hilton?
Canopy by Hilton is franchised by Hilton Franchise Holding LLC. Its parent company is Hilton Domestic Operating Company Inc.. The ultimate parent named in the FDD is Hilton Worldwide Holdings Inc.. Source: FDD Item 1, 2023 filing.
What is Item 19 in the Canopy by Hilton 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 Canopy by Hilton FDD and qualifies whose outlets they describe.
What is Canopy by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Canopy by Hilton (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Canopy by Hilton franchise locations are there?
As of their most recent FDD filing, Canopy by Hilton has 26 total units in the United States, including 26 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Canopy by Hilton a good franchise to buy?
FranchiseVerdict rates Canopy by Hilton as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
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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.