Classico Collection By SonestaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Classico Collection By Sonesta franchise does not disclose total investment in its current FDD, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.9M
- 29th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 1
- 7th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
22 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $1.9M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 60/100.
- 22 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
- Legal entity
- Sonesta RL Hotels Franchising Inc.
- Parent company
- Red Lion Hotels Corporation
- Incorporated in
- WA
- HQ
- 400 Centre Street, Newton, Massachusetts 02458
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $56K
- vs $51K prior year
Overview
About
Classico Collection franchisees operate upscale hotel properties under the Sonesta brand portfolio, managing guest services, housekeeping, food and beverage, and front-desk operations. Franchisees are responsible for property maintenance, staff management, marketing, and revenue optimization while paying 5% of gross room revenue to corporate regardless of profitability. Day-to-day operations involve standard hospitality management including occupancy management, guest satisfaction, and regulatory compliance across a 20-year agreement.
- CEO
- Keith Pierce and Jeffrey Leer
- Headquarters
- MA
- Founded
- 1986
- FDD year
- 2026
- States available
- 1
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.9M
- Better than avg vs category
- Liquid capital req'd
- $526K – $1.8M
- Better than avg vs category
- Franchise fee
- $75K – $125K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 16.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $9 |
| Transfer fee | $75K |
| Renewal fee | $75K |
| Total fee load | 16.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Classico Collection By Sonesta Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- Outlier
- Reported value implausible. See FDD Item 20
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Avoid this franchise—a collapsing single-unit system backed by financially distressed Sonesta with extensive litigation, no performance transparency, and unproven business model.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 60 / 100 rating
- 01HIGHGoing concern warning indicates parent company (Sonesta) financial distress or instability
- 02MINOROnly 1 unit in system with unknown growth trajectory suggests failed or stalled franchise expansion
- 03MINOREight stockholder lawsuits related to Sonesta merger demonstrate corporate governance and integration failures
- 04MINORTortious interference settlement with Radisson indicates competitive disputes and potential brand reputation damage
- 05MINORNo average revenue or net income disclosure prevents ROI validation and suggests poor system performance
- 06MINORMultiple breach of contract and trademark infringement actions against franchisees indicate operational/compliance issues
- 07MEDUnprotected territory creates cannibalization risk and unlimited local competition
- 08MINOR5% royalty on gross rooms revenue (not profit) means franchisee pays fees even during losses
- 09MEDHigh initial investment ($1.87M) with single-unit system and no disclosed profitability metrics is extremely risky
- 10MINOR20-year term locks franchisee into long commitment with unstable parent company and unclear exit strategy
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 22 |
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- franchisor facility and on-site
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
24 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Classico Collection By Sonesta · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do Classico Collection By Sonesta franchise owners earn?
Classico Collection By Sonesta does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Classico Collection By Sonesta's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Classico Collection By Sonesta (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 Classico Collection By Sonesta franchise locations are there?
As of their most recent FDD filing, Classico Collection By Sonesta has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Classico Collection By Sonesta a good franchise to buy?
FranchiseVerdict rates Classico Collection By Sonesta as a B-grade franchise with a risk score of 60 out of 100, 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.