Bottom line
- Total investment $31.5M including a $85K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 46/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- 15 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
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 DoubleTree by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
DoubleTree franchisees operate upscale hotel properties (typically 200-400 rooms) under the Hilton brand, managing daily guest services, housekeeping, food & beverage operations, and front-office functions. They pay 5% royalties on gross room revenue and must comply with Hilton's brand standards, technology systems, and pricing protocols. Revenue generation depends heavily on occupancy rates, average daily rates (ADR), and ancillary services.
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 · 20 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
DoubleTree presents moderate-to-caution risk: lack of financial transparency (no Item 19), slow growth, active antitrust litigation, unprotected territory, and aggressive termination enforcement create profitability uncertainty and operational vulnerability.
Score breakdown · what drove the 46 / 100 rating
- 01MEDNo Item 19 financial disclosures (Avg Revenue and Net Income not disclosed) prevents ROI validation and creates opacity around profitability
- 02MINORSlow unit growth of 3.6% YoY suggests market saturation or franchisee dissatisfaction in a mature 372-unit system
- 03HIGHMultiple active antitrust litigations alleging price-fixing and improper rate-setting software create legal/reputational risk and potential for franchisor liability
- 04MINORBreach of contract termination lawsuits indicate aggressive enforcement and compliance standards that may expose franchisees to termination risk
- 05MINORNo territory protection means new DoubleTree locations can be placed adjacent to existing franchisees, cannibalizing revenue
- 06MED23-year term is unusually long and locks franchisees into Hilton ecosystem with limited exit flexibility
- 07HIGHConsumer protection litigation regarding mandatory guest fee disclosure suggests potential brand reputation damage and guest dissatisfaction
- 08MED$31.4M+ investment requirement is capital-intensive with no disclosed average returns to evaluate payback period
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
DoubleTree by Hilton · FDD (2026) PDF