Bottom line
- Total investment $43K – $571K including a $15K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Coast Hotels unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Overview
About
Franchisees operate mid-scale hotel properties under the Coast Hotels brand, managing day-to-day operations including front-desk services, housekeeping, maintenance, guest services, and revenue management. Franchisees handle P&L responsibility while paying 3-5% royalties on gross room sales and adhering to brand standards across a protected territory.
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 · 6 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Coast Hotels presents meaningful risk due to lack of financial transparency (no Item 19), micro-scale system (9 units), unclear franchisor financial stability (going concern = false), and wide investment variance with no disclosed performance metrics.
Score breakdown · what drove the 67 / 100 rating
- 01MINORNo Item 19 (Average Revenue/Net Income) disclosure - impossible to assess profitability or ROI
- 02MINOROnly 9 units system-wide indicates very small/early-stage franchise with minimal track record
- 03MINORWide investment range ($42.5K-$571K) suggests inconsistent unit economics or unclear cost structure
- 04HIGHGoing Concern status is FALSE - potential financial instability at franchisor level
- 05MEDNo disclosed unit growth trajectory - unable to verify system momentum or franchisee success rates
- 06MINOR3-5% royalty on gross sales (not net) - franchisees pay fees even during unprofitable periods
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
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Coast Hotels · FDD (2023) PDF