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Choice Hotels International In Franchise Cost, Revenue & Review 2026

LodgingMarylandFranchising since 1939
DBelow averageBelow average34/100Editorial grade from public filings; not investment advice.
Investment
not available
Disclosed sales
not disclosed
SBA charge-off
12.8%
on 148 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-04605FDD 2026Data QualityLimited52%Limited DataPre-opening
Manager-run OKNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

FranchiseVerdict summary · 2026

A Choice Hotels International In franchise does not disclose total investment in its current FDD and an ongoing 6.0% 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. SBA 7(a) loans show a 12.8% charge-off rate across 148 loans[1]. FranchiseVerdict grade: D (Below 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: low - issued within the last 12 months

Evidence: partial✗ 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 scored3 of 3 headline figures on this page cite a page of the filing.

Overview

Investment
N/A
Avg gross sales
N/A
0 outlets
Royalty
6.0%
53rd pct Lodging
Units
0
0th pct Lodging
SBA charge-off
12.8%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Lodging · color = vs category peers

Total Investment
N/A
Median $8.9M
Franchise Fee
N/A
Median $50K
Fee not disclosed
Liquid Capital Req'd
$1.0M – $1.8M
Median $312K
above median ↑, worse than category
Avg Revenue
Not disclosed
Franchisor makes none
Royalty Rate
6.0%
Median 5.0%
above median ↑, worse than category
Ongoing Fees
0.1% of rev
Median 8.5%
below median ↓, better than category
SBA Charge-Off Rate
12.8%
148 loans · Median 3.7%
above median ↑, worse than category
System Size
0 units
Median 60 units
below median ↓, worse than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
141 cases
Review carefully

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 N/A, 6.0% 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 D (Below average), verdict score 34/100 (higher is better). SBA loan charge-off rate of 12.8% across 148 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed); 3 signed but not yet open (Item 20).
  • LEGAL141 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 14 name the franchisor itself, 1 its parent, affiliates or predecessor. Pending claims are allegations, not findings.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Choice Hotels International, Inc.
Predecessor
Radisson Hotels International, Inc. (franchised RADISSON INDIVIDUALS brand 2020-2022)
Prior franchisor entity
CEO title
Interim Chief Executive Officer
Dominic E. Dragisich
Incorporated in
Delaware
HQ
915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
Auditor
Ernst & Young LLP
Audited financials

Overview

About

Hotel franchisor offering the RADISSON INDIVIDUALS brand (upper upscale conversion/new-build hotels); Choice Hotels also franchises numerous other hotel brands (Comfort, Quality, Clarion, Cambria, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban, WoodSpring Suites, Ascend, Radisson family brands, etc.)

CEO
Dominic E. Dragisich
Headquarters
Maryland
Founded
1939
FDD year
2026

Can you afford it, and what does the money buy?

Total investment (Item 7)Not extracted
Franchise feeNot extracted
Royalty6.0%Cited, not corroborated — printed on page 33 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund3.0%Cited, not corroborated — printed on page 33 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$1.0M – $1.8M

Source: FDD 2026 · Items 5–7

The filing conditions this fee

The filing does not state an initial franchise fee.

Item 7 · what it costs to open + operate

The Vitals

Total investment
N/A
All-in to open one unit
Liquid capital req'd
$1.0M – $1.8M
Middle of category vs category
Franchise fee
N/A
Fee not disclosed
Royalty
6.0%
typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
0.1%
vs 9–13% typical

Ongoing fees · Item 6

Choice Hotels International In: Item 6 recurring fees
FeeAmount
Royalty6.0% of gross sales
Marketing / ad fund3.0% of gross sales
Technology fee$14K
Training fee$8K
Inventory (initial)$325K – $2.7M
Total fee load0.1% of rev
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

Choice Hotels International In 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 Choice Hotels International In unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
No Item 7 range on file. Enter your own
FDD reports $1.0M–$1.8M

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, other operating costs and initial investment, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
—
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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: 2026 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.

Showing the headline figures — all 126 extracted fields are in the Full FDD Report · $19 →

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 0.1% — below the Lodging median of 8.5%.

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.

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 Choice Hotels International In Compares

Metric
Choice Hotels International In
Category median
vs median
Investment
N/A
$8.9Mmiddle half $1.2M–$18.3M · n=96
N/A
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
0
60middle half 6–245 · n=126
Below median, worse than category

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?

Total units0Verified — printed on page 76 of the 2026 FDD (Item 20), and the table's own arithmetic closes on it two ways.

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
0
Opened
0
Last reporting year
Closed
1
Terminated
0
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Company-owned
0
Corporate units in the system

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
3
Item 20 Table 5
Projected new
0
Franchisor's next-year forecast
Opened0
Closed1
Terminated0

Last reporting year only, multi-year history not disclosed in this brand's FDD.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

C
SBA Lending Health
Average SBA lending record · 12.8% charge-off
Total loans
148
Loan volume
$228.8M
Median loan
$1.4M
50th percentile
Charge-off rate
12.8%
on 148 loans · 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)
87.2%
5-yr charge-off
N/A
Loans approved 2021+
Active lenders
73
Defaults
18
Typical loan rate
5.7%
avg rate to borrowers
vs industry
N/A
NAICS 7211
Jobs supported
2,159
0.9 per loan
Lender concentration
13%
top lender's share

Vintage analysis

Choice Hotels International In charge-off rate by loan vintage

BrandNational avg
Choice Hotels International In charge-off rate by loan vintage. Showing 13 vintages from 1999 to 2013. Rates range from 0.0% to 50.0%.0%5%10%15%20%25%30%35%40%45%50%'99'02'05'10'13

Top lenders financing Choice Hotels International In franchisees

Hanmi Bank19 loans—
Business Loan Center, LLC8 loans—
Bank of Hope8 loans—

Showing 3 of 73 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Choice Hotels International In from SBA 7(a) FOIA data.

Principal loss rate
5.9%
Avg SBA guarantee
74%
Avg interest rate
5.65%
Avg chargeoff amount
$745K
Lender concentration
12.8%
Job velocity
0.9 per $100K
Jobs supported
2,159

Top SBA lendersTop lender holds 13% of loans

#LenderLoansVolumeDefault %
119N/AN/A
28N/AN/A
38N/AN/A
46N/AN/A
54N/AN/A

Geographic failure vector

StateLoansDefaultsRate
TXTexas2628.0%
CACalifornia1400.0%
FLFlorida8225.0%
WAWashington8225.0%
NCNorth Carolina7114.3%
WIWisconsin7114.3%
ALAlabama6116.7%
GAGeorgia600.0%
NMNew Mexico600.0%
NYNew York600.0%

SBA 7(a) lending trend

1999
7
2000
6
2001
4
2002
9
2003
6
2004
8
2005
10
2006
17
2007
2
2008
8
2009
2
2010
9
2011
22
2012
19
2013
19

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 12.8% — 20% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off12.8% · 148 loans
Verdict score34/100 (higher is better)
Litigation141 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

DBelow average34Verdict score 34/100
Moderate confidence±9 pts
2543

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Several pending matters including a Canadian class action re destination marketing fees ($403M demand), a multi-franchisee RICO/antitrust suit (stayed, compelled to arbitration), a data-misuse/breach of contract suit (dismissed, on appeal), a fraudulent-rebate-scheme arbitration, an Ontario consumer-fee class action, and an individual civil-rights suit; plus dozens of Choice-initiated collection arbitrations against franchisees for unpaid royalties/fees and IP enforcement actions post-termination; resolved matters include a $779K adverse judgment (Highmark) and a $603K fee award in Choice's favor (Dahya).

Largest disclosed settlement: $85,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Ernst & Young LLP

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
Showing the headline figures — all 126 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail141 matters · Item 3

Litigation cases

The franchisor

Pending (5)

  • Gurpreet Kaur v. Choice Hotels International, Inc., et al.

    pending

    Brought by a franchisee · filed 2026-01-09 · United States District Court for the Central District of California · 5:26-cv-00090

    “Gurpreet Kaur v. Choice Hotels International, Inc., et al. United States District Court for the Central District of California, Case No. 5:26-cv-00090 On January 9, 2026, Plaintiff Gurpreet Kaur, in her individual capacity, filed a lawsuit against Choice Hotels and the American Arbitration Association alleging each entity owes her damages due to alleged violations of her federal civil rights and”Page 22 of the 2026 FDD, Item 3
  • Proulx, et al. v. Orsini Bros. Inns, Inc., et al.

    pending

    Third-party plaintiff · filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00747070-00CP

    “Proulx, et al. v. Orsini Bros. Inns, Inc., et al. Ontario Superior Court of Justice, Court File No. CV-25-00747070-00CP On July 8, 2025, a proposed class action lawsuit was filed in the Ontario Superior Court of Justice, against multiple hotel operators including Choice Hotels Canada Inc. and Choice Hotels International, Inc., alleging that consumers were charged misleading fees during hotel”Page 22 of the 2026 FDD, Item 3
  • CS Anaheim Hotel Investments, LLC v. Choice Hotels International, Inc.

    pending

    Brought by a franchisee · filed 2024-10-01 · United States District Court for the Central District of California; American Arbitration Association · 8:24-cv-02131; AAA 01-25-0003-4509

    “CS Anaheim Hotel Investments, LLC v. Choice Hotels International, Inc. United States District Court for the Central District of California, Case No. 8:24-cv- 02131 American Arbitration Association, Case No.: 01-25-0003-4509 On October 1, 2024, Plaintiff CS Anaheim Hotel Investments, LLC filed a complaint against Choice alleging a fraudulent rebate scheme with vendors, misuse of system fees,”Page 21 of the 2026 FDD, Item 3
  • T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC

    pending

    Brought by a franchisee · filed 2023-06-26 · United States District Court for the Middle District of Florida (transferred to District of Minnesota) · 6:23-cv-01187

    “T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC United States District Court for the Middle District of Florida, Case No. 6:23-cv-01187 On June 26, 2023, Plaintiff T&T Management, Inc. (“Licensee”) commenced a federal district court action in Florida against, among others, Radisson Hotels International, Inc.”Page 21 of the 2026 FDD, Item 3
  • Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al.

    pending

    Brought by a franchisee · filed 2020-06-12 · United States District Court for the Eastern District of Pennsylvania · 2:20-cv-02823

    “Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al. United States District Court for the Eastern District of Pennsylvania, Case No. 2:20-cv-”Page 20 of the 2026 FDD, Item 3

Concluded (4)

  • Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al.

    judgment

    Brought against a franchisee · filed 2021-04-09 · American Arbitration Association · 01-21-0003-7036

    “Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al. American Arbitration Association, Case #01-21-0003-7036 On April 9, 2021, Choice initiated this arbitration to pursue contractually due franchise fees, a promissory note balance, and lost profit damages from the franchisees in the amount of $498,495.93. On May 19, 2021, Franchisees filed a counterclaim against Choice in the amount”Page 30 of the 2026 FDD, Item 3

    Outcome:“DIP Hospitality, LLC prevailed on its wrongful termination claim in the amount of $4,411.678.56 and were found to be the prevailing party and awarded fees and costs in the amount of $430,125.87. DIP filed a motion to modify or partially vacate the arbitration award with regard to the apportionment of arbitration costs; we opposed the motion; the court denied it; and DIP is appealing the denial.”

  • Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al.

    judgment

    Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the District of Maryland, Southern Division · AAA 01-21-0004-5563; 8:2023cv01685

    “Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al. American Arbitration Association, Case #01-21-0004-5563 United States District Court for the District of Maryland, Southern Division, Case No. 8:2023cv01685 On June 29, 2021, Dahya Investments Incorporated and Dinu Patel (“Dahya”) filed an arbitration against Choice Hotels International, Inc. and Choice Hotels”Page 30 of the 2026 FDD, Item 3

    Outcome:“A Final Award was issued on May 9, 2023 finding that: 1) Choice must pay $882 for breach of contract, and 2) Dahya must pay Choice the sum of $603,483.00 for attorney’s fees and costs relating to the dismissed claims. Choice filed a motion to confirm the Final Award against Dahya and the Final Award was confirmed into a judgment on January 17, 2024 at the motion to seal hearing.”

  • Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al.

    judgment

    Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the Eastern District of Pennsylvania · AAA 01-21-0004-5554; 5:20cv2823

    “Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al. American Arbitration Association, Case #01-21-0004-5554 United States District Court for the Eastern District of Pennsylvania, Case #5:20cv2823 On June 29, 2021, Highmark Lodging, LLC and Darshan Patel (“Highmark”) filed an arbitration against Choice Hotels International, Inc. and Choice Hotels Owners Council in”Page 30 of the 2026 FDD, Item 3

    Outcome:“A Final Award was issued on July 27, 2023 against Choice and in favor of Highmark in the amount of $740,072.25. Highmark filed a motion to confirm the Final Award and Choice filed a motion to vacate in part. Choice’s motion was denied, and a final judgment was entered against Choice in the amount of $779,398.40 on March 4, 2024.”

  • Sender Kohl v. Choice Hotels International, Inc.

    settled

    Brought by a franchisee · filed 2018-10-29 · United States District Court for the Southern District of Florida, Fort Lauderdale Division; American Arbitration Association · 0:18-cv-62597; AAA 01-19-0000-1797

    “Sender Kohl v. Choice Hotels International, Inc. United States District Court for the Southern District of Florida, Fort Lauderdale Division, Case #0:18-cv-62597 and American Arbitration Association, Case #01-19-0000-1797 On October 29, 2018, Sender Kohl filed an action against us seeking damages in an unspecified amount. The complaint alleged breach of contract, breach of the implied covenant of”Page 29 of the 2026 FDD, Item 3

    Outcome:“25, 2021, the parties settled this dispute. As part of the settlement, Choice agreed to pay its former franchisee $85,000.00 in exchange for dismissal of the arbitration.” (page 30)

Status not stated in the filing (5)

  • Baba Nanak Hospitality Group Corp, Hardeep Arora, and Parmeet Arora

    Brought against a franchisee · filed 2025-06-13 · U.S. District Court Eastern District of Wisconsin (Milwaukee) · 2:25-cv-00848

    “ACTIONS INITIATED BY CHOICE TO ENFORCE INTELLECTUAL PROPERTY RIGHTS – POST TERMINATION Defendants Venue Case Number Filing Date Baba Nanak Hospitality Group Corp, Hardeep Arora, and Parmeet Arora U.S. District Court Eastern District of Wisconsin (Milwaukee) 2:25-cv-00848 June 13, 2025”Page 29 of the 2026 FDD, Item 3
  • INTERCONTINENTAL MANAGEMENT, LLC, Nasir Habib, Shahid Hussain, and Sohail Khan

    Brought against a franchisee · filed 2025-09-04 · U.S. District Court Southern District of Indiana (Indianapolis) · 1:25-cv-01758

    “Parmeet Arora U.S. District Court Eastern District of Wisconsin (Milwaukee) 2:25-cv-00848 June 13, 2025 INTERCONTINENTAL MANAGEMENT, LLC, Nasir Habib, Shahid Hussain, and Sohail Khan U.S. District Court Southern District of Indiana (Indianapolis) 1:25-cv-01758 September 4, 2025”Page 29 of the 2026 FDD, Item 3
  • Mansfield Hotel, LLC, Gita Jasani, and Satish Patel, a/k/a as Sam Saspra

    Brought against a franchisee · filed 2025-10-01 · U.S. District Court Northern District of Ohio (Cleveland) · 1:25-cv-02093

    “1:25-cv-01758 September 4, 2025 Mansfield Hotel, LLC, Gita Jasani, and Satish Patel, a/k/a as Sam Saspra U.S. District Court Northern District of Ohio (Cleveland) 1:25-cv-02093 October 1, 2025”Page 29 of the 2026 FDD, Item 3
  • Marietta Hotels LLC, Saranath T. Annamalai, Venkatesh Muthukumar, and Murugan Ganesh

    Brought against a franchisee · filed 2025-01-14 · American Arbitration Association · 01-25-0000-2533

    “ACTIONS INITIATED BY CHOICE TO RECOVER ROYALTIES, LIQUIDATED DAMAGES AND OTHER DEBTS OWED TO CHOICE HOTELS Defendant or Respondent Venue Case Number Filing Date Marietta Hotels LLC, Saranath T. Annamalai, Venkatesh Muthukumar, and Murugan Ganesh American Arbitration Association 01-25-0000-2533 January 14, 2025”Page 22 of the 2026 FDD, Item 3
  • Siddhi Vinayak Hospitality Inc., Harsiddhi Properties LLC, Shailesh Patel, Ashish Patel, and Chirag Patel

    Brought against a franchisee · filed 2025-11-20 · U.S. District Court Central District of Illinois (Rock Island) · 4:25-cv-04212

    “1:25-cv-02093 October 1, 2025 Siddhi Vinayak Hospitality Inc., Harsiddhi Properties LLC, Shailesh Patel, Ashish Patel, and Chirag Patel U.S. District Court Central District of Illinois (Rock Island) 4:25-cv-04212 November 20, 2025”Page 29 of the 2026 FDD, Item 3

Parent, affiliates and predecessor

Pending (1)

  • Norma Knuth v. Radisson Hotels International, Inc., et al.

    pending

    Third-party plaintiff · Radisson Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. ("Country") · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan · QBG No. 2560 of 2014

    “Norma Knuth v. Radisson Hotels International, Inc., et al. Court of Queen’s Bench for Saskatchewan, Court File No. QBG No. 2560 of 2014 On December 5, 2014, Norma Knuth filed a complaint under the Class Actions Act against over 25 named defendants, including Country, alleging that the defendants wrongfully collected undisclosed destination marketing fees (“DMF”) charged to the plaintiff and other”Page 20 of the 2026 FDD, Item 3

This list shows 15 of the 141 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal termNot extracted
TerritoryNone (caution)
Initial trainingNot extracted

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Allowed renewalsℹ0
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Right of first refusalℹYes
RoFR response window90 days
Transfer requires consentYes
Termination notice60 days
Curable defaultsℹ2
Mandatory arbitrationYes
Arbitration locationMaryland
Jury trial waiverYes
Governing lawMaryland
Litigation count141
View Item 3 litigation summary

Several pending matters including a Canadian class action re destination marketing fees ($403M demand), a multi-franchisee RICO/antitrust suit (stayed, compelled to arbitration), a data-misuse/breach of contract suit (dismissed, on appeal), a fraudulent-rebate-scheme arbitration, an Ontario consumer-fee class action, and an individual civil-rights suit; plus dozens of Choice-initiated collection arbitrations against franchisees for unpaid royalties/fees and IP enforcement actions post-termination; resolved matters include a $779K adverse judgment (Highmark) and a $603K fee award in Choice's favor (Dahya).

Items 10, 11

Training & Operations

Training duration
3 days
Training location
Choice Hotels headquarters, North Bethesda, Maryland (Upscale Immersion Program); HOST certification is self-paced virtual
Ongoing training
Required
Time to open
21 mo
From signing to launch
Site selection
franchisor approval required; franchisee selects site
Franchisor financing
Offered
Item 10
POS system
Toast
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Toast

Frequently asked questions

Frequently Asked Questions

What do Choice Hotels International In franchise owners earn?

Choice Hotels International In 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 Choice Hotels International In?

Choice Hotels International In is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2026 filing.

What is Item 19 in the Choice Hotels International In 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 Choice Hotels International In FDD and qualifies whose outlets they describe.

What is Choice Hotels International In's franchise failure rate?

Based on SBA 7(a) loan data, Choice Hotels International In has a charge-off rate of 12.8% across 148 loans, meaning 12.8% 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.

Is Choice Hotels International In a good franchise to buy?

FranchiseVerdict rates Choice Hotels International In as a D-grade franchise with a verdict score of 34 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

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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.