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D73/100FDD 2024

Country Inn & Suites by Radisson — Litigation & Risk

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

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Elevated Risk

92 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
92
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
73 / 100
FranchiseVerdict composite
Rating
CAUTION
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
243
Government-backed loans issued
Default rate
12.1%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
21 loans
Loans charged off or defaulted
Total loan volume
$458.5M
Avg loan size
$1.9M
Participating lenders
60

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

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 73/100 rating

Risk Score Breakdown

  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 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.