Comfort Inn Franchise Cost & 2024 FDD Data
88/100
Strongest tier
88 this brand65 Lodging medianlikely 82–94: narrower with a newer filing (high confidence)
Higher is better · an editorial assessment, not investment advice
#74 of 3,068 graded brands
Why an A: Helped by financial health, scale and transparency. See all six factors
- Total investment
- $319K – $2.3M
- excl. land and real estate
- Avg gross sales
- partial, no system average
- SBA charge-off
- 1.8%
1 in 55 SBA 7(a) loans to Comfort Inn owners charged off (4 of 220 resolved loans, approved FY1992 to FY2013); Lodging median 3.2%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.
FranchiseVerdict summary · 2024 FDD
Per the 2024 FDD, a Comfort Inn franchise requires a total initial investment of $319K – $2.3M, excluding land and real estate, including a $50K franchise fee. Once open, the ongoing royalty is 6.0%. The 2024 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 1.8% charge-off rate on 220 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2024 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: high (issued more than two years ago)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Lodging median
Top edge: green = better than the Lodging median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSItem 19 reports Historical rather than annual gross sales, so the figure is not directly comparable.
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 9 (45 opened, 36 closed).
- LEGAL90 litigation matters disclosed in Item 3, higher than typical. Of the 12 listed on this page, 11 name the franchisor or its predecessor, 1 its parent or affiliates. Pending claims are allegations, not findings.
AT STAKEOne unit at the Item 7 midpoint: $173K a year in payments on assumed SBA 7(a)-style terms.You put in about $267K of your own cash and personally guarantee a $1.1M loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- 2 pending matters name the franchisor in Item 3 (litigation). Pending claims are allegations, not findings.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, SBA charge-off rate 1.8%, below the 3.2% category median, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 1,600 units.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 84% below the Lodging median ($8.5M).
Source: FDD 2024 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Choice Hotels International, Inc. (Item 1: 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (first 3 months) | $25K | $50K |
| Equipment, build-out, other | $244K | $2.2M |
| Total initial investment | $319K | $2.3M |
Source: Comfort Inn 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology feeschoiceADVANTAGE Support Fee: $472–$778 per month based on room count (ongoing remote software support) | See the list |
| Total fee loadabove the Lodging median of 8.5% (heavy) | 9.5% of sales |
What do units actually make?
Source: FDD 2024 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Comfort Inn unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $1.3M Item 7 midpoint is a $1.1M loan, paid over 10 years at 10.5%: $173K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Comfort Inn's past SBA 7(a) loans averaged 5.7% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $267K Assumption (the part the loan does not cover of the $1.3M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $1.1M.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Item 19 of the Comfort Inn FDD discloses figures for part of the system but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Comfort Inn unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
No Item 19 figures are on file for this brand. Enter your own costs from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $319K to $2.3M
Item 7's $25K to $50K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $1.1M at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
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.
Item 19 · Source: 2024 FDD · filed by Choice Hotels International, Inc.
Financial performance
Percentile ranks within Lodging
Each rank is among the Lodging brands that report that figure (the count is under each bar).
vs Lodging medians
How Comfort Inn compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Choice Hotels International, Inc.
Same franchisor, other programs: ASCEND HOTEL COLLECTION, Clarion / Clarion Pointe, Country Inn & Suites by Radisson, Econo Lodge, Everhome Suites, MainStay Suites, Park Inn by Radisson, RODEWAY INN, Radisson Blu, Radisson Individuals, Sleep Inn, Suburban Studios, WoodSpring Suites. Each is a separate offering with its own page.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- FDD Item 1, page 10 of the 2024 FDD
- Predecessor
- Quality Courts Motels, Inc. (later Choice Hotels Franchising, Inc.); now Choice Hotels International, Inc.
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- latest fiscal year in the 2024 FDD; $1.4B the year before
Same owner · FDD Item 1, page 10
12 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.
- ASCEND HOTEL COLLECTION (grade B)
- Clarion / Clarion Pointe (grade B)
- Country Inn & Suites by Radisson (grade A)
- Econo Lodge (grade B)
- Everhome Suites (grade B)
- MainStay Suites (grade A)
- Park Inn by Radisson (grade B)
- RODEWAY INN (grade B)
- Radisson Individuals (grade C)
- Sleep Inn (grade A)
- Suburban Studios (grade A)
- WoodSpring Suites (grade B)
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Franchisor of limited-service, upper mid-scale hotels operating under the COMFORT INN, COMFORT INN & SUITES, and COMFORT SUITES trademarks
- CEO
- Patrick S. Pacious
Is the system healthy?
+19 franchised outlets over the two years to 2023 (1,645 to 1,664, +1.2% in total, +0.6% a year compounded).
Source: FDD 2024 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 123
- 1 for every 14 open outlets · Item 20 Table 5
- Projected new
- 38
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 1,645 in 2021 to 1,664 in 2023
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 14 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 14 statesNo current outlet
77 current outlets in 14 states, plus 1 with no US state or territory: the 78 on the owner list, of 1,664 franchised at year end (Item 20).
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 1.8% of 220 resolved SBA 7(a) loans, below the 3.2% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 225
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $283.1M
- Average loan
- $1.3M
- loan volume divided by loans
- Charge-off rate
- 1.8%
- 4 of 220 resolved loans
- Paid in full
- 98.2%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2013
- Lenders
- 99
- Average interest rate
- 5.7%
- Jobs reported
- 1,064
- on the 110 loans approved FY1999 on; earlier loans did not record jobs
- Lender concentration
- 9%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Lodging brand charges off 3.2% (29 brands with a published rate, same cumulative window and source). This brand is 1.4 points below it.
The approval-year breakdown covers 217 of the 220 resolved loans and 4 of the 4 charge-offs (FY1992 to FY2013).
SBA 7(a) · charge-off rate by approval year
Comfort Inn: below all franchise loans in each of the 11 rated years
Hollow rings on the axis: years with fewer than 10 resolved loans, not rated (too few to judge). Their numbers are in the table.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 1992 | 13 | 0 | 0.0% |
| 1993 | 25 | 0 | 0.0% |
| 1994 | 17 | 0 | 0.0% |
| 1995 | 21 | 0 | 0.0% |
| 1996 | 11 | 0 | 0.0% |
| 1997 | 18 | 0 | 0.0% |
| 1998 | 10 | 1 | 10.0% |
| 1999 | 9 | 0 | Too few |
| 2000 | 12 | 0 | 0.0% |
| 2001 | 11 | 0 | 0.0% |
| 2002 | 12 | 0 | 0.0% |
| 2003 | 10 | 1 | 10.0% |
| 2004 | 5 | 0 | Too few |
| 2005 | 5 | 0 | Too few |
| 2008 | 8 | 1 | Too few |
| 2009 | 3 | 0 | Too few |
| 2010 | 3 | 0 | Too few |
| 2011 | 9 | 1 | Too few |
| 2012 | 9 | 0 | Too few |
| 2013 | 6 | 0 | Too few |
Dashed line: all franchise 7(a) loans approved the same year.
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Comfort Inn from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 70%
- Average interest rate
- 5.7%
- Lender concentration
- 9%
- Jobs reported
- 1,064
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| First Western SBLC, Inc | ||
| 21 | $25.7M | Not on file |
| Wells Fargo Bank National Association | ||
| 16 | $15.5M | Not on file |
| Truist Bank | ||
| 10 | $10.3M | Not on file |
| Readycap Lending, LLC | ||
| 9 | $7.5M | Not on file |
| Comerica Bank | ||
| 8 | $8.6M | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 30 | 0 | 0.0%30 resolved |
| CA California | 28 | 0 | 0.0%27 resolved |
| GA Georgia | 20 | 2 | 10.5%19 resolved |
| OH Ohio | 10 | 0 | 0.0%10 resolved |
| SC South Carolina | 10 | 0 | 0.0%10 resolved |
| AL Alabama | 9 | 0 | Too few8 resolved |
| IL Illinois | 8 | 0 | Too few8 resolved |
| MS Mississippi | 8 | 0 | Too few8 resolved |
| NC North Carolina | 7 | 0 | Too few7 resolved |
| TN Tennessee | 7 | 0 | Too few6 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
With a charge-off rate of 1.8% on 220 resolved loans approved FY1992 to FY2013, very few of this brand's SBA 7(a) loans have been charged off.
What are the risks?
SBA loans charge off at 1.8% on 220 resolved loans approved FY1992 to FY2013, below the Lodging median of 3.2% (29 brands).
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 88/100 (category median 65); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Neutral+19 franchised outlets over the two years to 2023 (1,645 to 1,664, +1.2% in total, +0.6% a year compounded); turnover 2.2%
- Scale Helps1,664 franchised units; franchising since 1981
- Legal NeutralItem 3 covers the franchisor's whole portfolio, so no matter is attributed to this brand (neutral)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+11 points)SBA loan record: the SBA charge-off rate (1.8% on 220 resolved loans approved FY1992 to FY2013) is under 2%, a range the score counts in a brand's favour, so it added 10 points.Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 Section I: 3 pending cases (Knuth class action in Canada re DMF fees; Jai Sai Baba franchisee discrimination suit/arbitration; T&T Management breach case). Section II: Large number of actions by Choice to recover unpaid royalties/liquidated damages from individual franchisees in prior fiscal year (2023), plus 1 IP enforcement action. Section III: 4 resolved cases including a $779,398 judgment against Choice in Highmark Lodging and $85,000 settlement in Kohl case.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements of Choice Hotels International, Inc. (parent franchisor) for years ended December 31, 2023, 2022, 2021 (Exhibit C), in thousands. FY2023 total revenues $1,544.165M include $784.16M of pass-through other revenues from franchised and managed properties; royalty/licensing/management fees $513.412M, initial franchise fees $27.787M. Net worth (total shareholders' equity) is low ($35.598M) due to $2.047B treasury stock against $1.756B retained earnings.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results; the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Litigation case detail90 matters · Item 3
Litigation cases
The franchisor
Pending (2)
T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC
pendingfiled 2023-06-26 · United States District Court for the Middle District of Florida · 6:23-cv-01187
“… United States District Court for the Middle District of F”Page 23 of the 2024 FDD, Item 3
Outcome: “The Court has not yet ruled on the pending Motions” (page 24)
Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al.
pendingBrought by a third party · filed 2020-06-12 · United States District Court for the Eastern District of Pennsylvania · 2:20-cv-02823
“… United States District Court for the Eastern District of Pennsylvania, Case No. 2:20-cv- 02823 On June 12, 20”Page 23 of the 2024 FDD, Item 3
Outcome: “This case remains stayed, and the parties provide the Court with monthly status updates. T”
Within this matter, as the filing narrates it · 3 proceedings
Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al.
pendingBrought by the franchisor · names the franchisor · filed 2021-04-09 · American Arbitration Association · 01-21-0003-7036
“The following arbitration is currently pending in conjunction with this case: Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al. American Arbitration Association, Ca”Page 23 of the 2024 FDD, Item 3
Outcome: “The arbitration hearing concluded in 2023, and the parties are waiting for an arbitration award”
Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al.
concludednames the franchisor · filed 2021-06-29 · American Arbitration Association; United States District Court for the District of Maryland, Southern Division · 01-21-0004-5563; 8:2023cv01685
“… American Arbitration Association, Case #01-21-0004-5563 United States District Court for the District of M”Page 30 of the 2024 FDD, Item 3
Outcome: “the Final Award was confirmed into a judgment on January 17, 2024 at”
Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al.
concludednames the franchisor · filed 2021-06-29 · American Arbitration Association; United States District Court for the Eastern District of Pennsylvania · 01-21-0004-5554; 5:20cv2823
“… American Arbitration Association, Case #01-21-0004-5554 United States District Court for the Eastern District of Pe”Page 29 of the 2024 FDD, Item 3
Outcome: “a final judgment was entered against Choice in the amount of $779,398.40 on March 4, 2024.” (page 30)
Counted as one matter, the way Item 3 groups it.
Concluded (2)
Sender Kohl v. Choice Hotels International, Inc.
concludedfiled 2018-10-29 · United States District Court for the Southern District of Florida, Fort Lauderdale Division, and American Arbitration Association · 0:18-cv-62597; 01-19-0000-1797
“… United States District Court for the Southern District of Florida, Fort Lauderdale Division, Case #0:18-cv-62597 and American Arbitration Ass”Page 29 of the 2024 FDD, Item 3
Outcome: “On August 25, 2021, the parties settled this dispu”
Wydredge, L.L.C., H & P Investments, Clayton Wyman, Barry Eldredge and James Rumpsa v. Choice Hotels International, Inc.
concludedfiled 2012-08-31 · American Arbitration Association · 16-114-000517-12
“… American Arbitration Association, Case # 16-114-000517-12 On August 3”Page 29 of the 2024 FDD, Item 3
Outcome: “On July 7, 2014, the parties settled this dispute.”
Status not stated in the filing (7)
Choice Hotels International, Inc. v. 144 Investors, LLC and Surjeet Kaur (post-termination intellectual property enforcement)
Brought by the franchisor · filed 2023-08-11 · U.S. District Court Eastern District of New York (Brooklyn) · 1:23cv06066
“ACTIONS INITIATED BY CHOICE TO ENFORCE INTELLECTUAL PROPERTY RIGHTS – POST TERMINATION Defendant Venue Case Number Filing Date 144 Investors, LLC and Surjeet Kaur U.S. Di”Page 29 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. 67585 Hacienda, LLC and Calvin Chun
Brought by the franchisor · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4410
“67585 Hacienda, LLC and Calvin Chun American Arbitration Association 01-23-0000-4410 January 31, 2023 Le Cercle Rouge, L”Page 24 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. Donald R. Dreiske, Lance B. Stuart, James R. Stuart, Harvey W. Lester and Rebecca Kenny
Brought by the franchisor · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4309
“Donald R. Dreiske, Lance B. Stuart, James R. Stuart, Harvey W. Lester and Rebecca Kenny American Arbitration Association 01-23-0000-4309 January 31, 2023 67585 Hacienda,”Page 24 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. Jai Sai Baba, LLC, Dipesh Patel and MDPD13 Investments, LLC
Brought by the franchisor · filed 2023-01-19 · United States District Court for the District of Maryland, Southern Division, transferred to the United States District Court for the Eastern District of Pennsylvania, Philadelphia · 8:2023cv00146; 8:2023cv03360
“Jai Sai Baba, LLC, Dipesh Patel and MDPD13 Investments, LLC United States District Court for the District of Maryland, Southern Division, transferred to United States District Court for the”Page 24 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. Jeet Hospitality, Inc. and Indravaden Patel
Brought by the franchisor · filed 2023-02-02 · American Arbitration Association · 01-23-0000-4726
“Jeet Hospitality, Inc. and Indravaden Patel American Arbitration Association 01-23-0000-4726 February 2, 2023 Kei. V. Inc. and Sey”Page 24 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. Le Cercle Rouge, LLC, David Adehou and Milan G. Mody
Brought by the franchisor · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4439
“Le Cercle Rouge, LLC, David Adehou and Milan G. Mody American Arbitration Association 01-23-0000-4439 January 31, 2023 Jeet Hospitality, Inc”Page 24 of the 2024 FDD, Item 3
Choice Hotels International, Inc. v. SC Hotel Group, LLC, SC Hotel Partners, LLC, Lajwanti Gandhi and Rolan Chowdhury
Brought by the franchisor · filed 2023-01-18 · Circuit Court for Montgomery County, Maryland · C15CV23000171
“SC Hotel Group, LLC, SC Hotel Partners, LLC, Lajwanti Gandhi and Rolan Chowdhury Circuit Court for Montgomery County, Maryland C15CV23000171 January 18, 2023 Jai Sai Baba”Page 24 of the 2024 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
Norma Knuth v. Radisson Hotels International, Inc., et al.
pendingBrought by a third party · Country Inn & Suites by Radisson, Inc. (“Country”) · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan · QBG No. 2560 of 2014
“… Court of Queen’s Bench for Saskatchewan, Court File No. QBG No. 2560 of 2014 On December 5, 2014, Norma Knuth f”Page 22 of the 2024 FDD, Item 3
Outcome: “The class has yet to be certified” (page 23)
This list shows 12 of the 90 matters Item 3 discloses; the rest are in the filing.
3 of the proceedings above are indented under the matter they belong to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 90 Item 3 discloses agree.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Allowed renewals | 0 |
|---|---|
| Protected territory | No |
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner-operator not required |
| Right of first refusal | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
Items 10 (financing), 11 (training and support)
Training and operations
- Training duration
- 3 days
- Ongoing training
- Required
- Site selection
- Franchisee selects site; franchisor must approve location
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
78 current outlets listed
Records carry a phone number and state (state on 77 of 78). No franchisee names or cities. 78 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 78 of the 1,664 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Comfort Inn franchise?
Per the 2024 FDD, the total investment to open a Comfort Inn franchise ranges from $319K to $2.3M, with an initial franchise fee of $50K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include land and real estate.
What do Comfort Inn franchise owners earn?
Item 19 of the Comfort Inn FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Comfort Inn?
Comfort Inn is franchised by Choice Hotels International, Inc. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Comfort Inn 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 Comfort Inn FDD and qualifies whose outlets they describe.
What is Comfort Inn's franchise failure rate?
There is no published franchise failure rate. What is measurable is Comfort Inn's SBA charge-off rate: 1.8% on 220 resolved loans approved FY1992 to FY2013. Put plainly: 1 in 55 SBA 7(a) loans to Comfort Inn owners charged off (4 of 220 resolved loans, approved FY1992 to FY2013). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Comfort Inn franchise locations are there?
Per the 2024 FDD, Comfort Inn has 1,664 franchised units and 0 company-owned (1,664 in all). In the latest year, the number of franchised outlets grew by 9 (45 opened, 36 closed).
Is Comfort Inn a good franchise to buy?
FranchiseVerdict gives Comfort Inn an A Verdict grade (Strongest tier) with a verdict score of 88 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), scale and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Lodging franchises
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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.