FranchiseVerdict
Cobblestone Inn & Suites, Cobblestone Hotel & Suites, Cobblestone Suites logo
A53/100FDD 2024

Cobblestone Inn & Suites, Cobblestone Hotel & Suites, Cobblestone Suites — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
53 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Wisconsin
State whose law governs disputes — relevant if you're not based there

What drove the 53/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 (average unit volumes) disclosed - cannot assess profitability or ROI
  2. 02MINORExtremely wide investment range ($5.4M-$24M) suggests high variability and unpredictable costs
  3. 03MEDSlow unit growth of 5.3% YoY indicates limited brand momentum and market saturation concerns
  4. 04MINORRoyalty structure of $3.75/room/day is highly dependent on occupancy rates - vulnerable to market downturns
  5. 05MEDSmall franchise system (119 units) offers limited brand recognition compared to major hotel chains

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.