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A53/100FDD 2026

DoubleTree by Hilton — Litigation & Risk

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

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Elevated Risk

15 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
15
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
5
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$20.1M
Avg loan size
$4.0M
Participating lenders
4

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New York
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 financial disclosures (Avg Revenue and Net Income not disclosed) prevents ROI validation and creates opacity around profitability
  2. 02MINORSlow unit growth of 3.6% YoY suggests market saturation or franchisee dissatisfaction in a mature 372-unit system
  3. 03HIGHMultiple active antitrust litigations alleging price-fixing and improper rate-setting software create legal/reputational risk and potential for franchisor liability
  4. 04MINORBreach of contract termination lawsuits indicate aggressive enforcement and compliance standards that may expose franchisees to termination risk
  5. 05MINORNo territory protection means new DoubleTree locations can be placed adjacent to existing franchisees, cannibalizing revenue
  6. 06MED23-year term is unusually long and locks franchisees into Hilton ecosystem with limited exit flexibility
  7. 07HIGHConsumer protection litigation regarding mandatory guest fee disclosure suggests potential brand reputation damage and guest dissatisfaction
  8. 08MED$31.4M+ investment requirement is capital-intensive with no disclosed average returns to evaluate payback period

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.