FranchiseVerdict
Country Inn & Suites by Radisson logo
FV-00642·MODERATEStandard76

Country Inn & Suites by Radisson

Lodging - Hotels & MotelsFranchising since 1963Website
Investment
$678K – $15.9M
35th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
6.0%
74th pct Hotels & Mote…
Units
425
87th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $678K – $15.9M including a $50K franchise fee, 6.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 60/100. SBA loan default rate of 0.0% across 16 loans (below the industry average).
  • 92 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
Choice Hotels International, Inc.
Parent company
Choice Hotels International, Inc.
Incorporated in
Delaware
HQ
915 Meeting Street, Suite 600, North Bethesda, Maryland Maryland 20852
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$1.4B
vs $1.5B prior year

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 Country Inn & Suites by Radisson unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $678K–$15.9M
Working capital
$
FDD reports $25K–$100K

Unlevered ROIC · per unit

1%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$79K
EBITDA margin
10.5%
Total invested
$8.4M
Payback
1274 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate mid-scale hotel properties under the Country Inn & Suites brand, managing daily front-desk operations, housekeeping, maintenance, guest services, and revenue management. They pay 6.0% royalties on gross room revenues plus participate in brand marketing fee programs, while competing without territorial exclusivity.

CEO
Patrick S. Pacious
Founded
1963
FDD year
2024
States available
42

Item 7 · what it costs

The Vitals

Total investment
$678K – $15.9M
All-in to open one unit
Liquid capital
$25K – $100K
Cash you must have on hand
Franchise fee
$50K
Royalty
6.0%
Gross Room Revenues · typical 6–8%
Ad fund
3.5%
typical 3–5%
Total fee load
9.5%
vs 9–13% typical

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

Total units
425
Opened
3
Last reporting year
Closed
11
Turnover rate
2.6%
Company-owned
4
Corporate units in the system
% franchised
99%
vs corporate-owned
Net growth (yr3)
-1.9%
Net unit change last year
3-yr CAGR
-5.0%
Compounded over last 3 years
2022
421-8
Franchised units
2023
429
Franchised units
2024
443
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 32 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 32 states
Not registered

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.

Total loans
16
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

60
Risk · 0-100
MODERATE60 / 100

Country Inn & Suites exhibits high-risk characteristics including system decline, franchisee financial distress (84 collection actions), material litigation alleging RICO violations, undisclosed financial performance, and unprotected territories—warranting extreme caution.

Score breakdown · what drove the 60 / 100 rating

  1. 01MINORDeclining unit count (-1.9% YoY) indicates system contraction and market saturation concerns
  2. 02HIGHMultiple material litigations including RICO/antitrust allegations by franchisees suggest systemic franchisor-franchisee relationship problems
  3. 03MINOR84 royalty collection actions in one year demonstrates widespread franchisee financial distress and payment defaults
  4. 04MINORNo Item 19 financial performance disclosure (Avg Revenue and Net Income not provided) prevents informed ROI analysis on $678K-$15.9M investment range
  5. 05HIGHClass action litigation regarding destination marketing fees suggests hidden or unexpected fee structures impacting franchisee profitability
  6. 06MINORGuest data misappropriation lawsuit raises operational and legal compliance risks
  7. 07MINORUnprotected territory creates direct competition risk from other Country Inn & Suites locations and cannibalization of market revenue
  8. 08HIGHHigh litigation volume (4 material cases resolved + multiple pending) indicates contentious franchisor practices and dispute resolution patterns

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
specific site only
Protected territory
No
Initial term
20 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
92
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Maryland

Item 11

Training & Operations

Classroom training
47 hrs
On-the-job training
16 hrs
POS system
choiceADVANTAGE®
Operating tech stack

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

Locked
(615) 400-••••
TN
(980) 722-••••
NC
(847) 877-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

Country Inn & Suites by Radisson · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above