Bottom line
- Total investment $298K – $2.6M including a $45K franchise fee, 5.5% 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.
- 62 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
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 Clarion / Clarion Pointe unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Overview
About
Franchisees own and operate select-service or extended-stay hotel properties under the Clarion or Clarion Pointe brand, managing daily front-desk operations, housekeeping, maintenance, guest services, and revenue optimization. They pay 5.5% royalties on gross room revenue and generate returns through room bookings, ancillary services (parking, F&B), and property appreciation. Success depends on occupancy rates, average daily rate (ADR) management, and local market demand within the upper-midscale hotel segment.
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 · 38 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Clarion faces systemic unit decline, extensive royalty litigation, missing financial disclosures, and unprotected territories—presenting material operational and financial risks that warrant deep due diligence before investment.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-0.6% YoY) suggests system contraction and potential franchisee exits
- 02MINOR54 active royalty recovery lawsuits by franchisor indicate widespread payment disputes and cash flow problems among franchisees
- 03MINORNo Item 19 financial performance disclosure prevents assessment of actual franchisee profitability and ROI
- 04MINORWide investment range ($298K–$2.6M) with no average revenue data creates opacity around unit economics
- 05MINORUnprotected territory exposes franchisees to direct franchisor competition and internal cannibalization
- 06HIGHHigh cumulative litigation count (62+ actions) suggests adversarial franchisor-franchisee relationship
- 07MINORMid-to-high royalty rate (5.5%) combined with no profitability disclosure is concerning
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Clarion / Clarion Pointe · FDD (2024) PDF