Choice Hotels International In Franchise Cost, Revenue & Review 2026
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 a disclosure choice, not a measure of how the system performs. 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 →
Data last verified
Overview
- Investment
- N/A
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 52nd 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
Green = favorable by >10% vs Lodging avg · 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 a disclosure choice, not a measure of how the system performs.
- 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).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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
Can you afford it, and what does the money buy?
Source: FDD · Items 5–7
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
- Paid to franchisor at signing
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $14K |
| Training fee | $8K |
| Inventory (initial) | $325K – $2.7M |
| Total fee load | 0.1% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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?
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, other operating costs and initial investment, 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.
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 a disclosure choice, not a measure of how the system performs.
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 0.1% — below the Lodging average of 10.4%.
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 a disclosure choice, not a measure of how the system performs. 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 averages
How Choice Hotels International In Compares
Is the system healthy?
Source: FDD · 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
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
- Total loans
- 148
- Loan volume
- $228.8M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 12.8%
- 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)
- 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
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Choice Hotels International In charge-off rate by loan vintage
Top lenders financing Choice Hotels International In franchisees
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.
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.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
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: $779,398
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
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 10 |
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
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 a disclosure choice, not a measure of how the system performs. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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), 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.
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.