GreenTree Inn HotelFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A GreenTree Inn Hotel franchise requires a total initial investment of $301K – $1.8M, including a $20K franchise fee and an ongoing 4.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $301K – $1.8M
- 18th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 4.0%
- 2nd pct Lodging
- Units
- 17
- 20th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $301K – $1.8M including a $20K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GreenTree Hospitality Group, Inc.
- Parent company
- GreenTree Inns Hotel Management Group, Inc.
- Incorporated in
- DE
- HQ
- 6270 N. Scottsdale Road., Suite 270, Scottsdale, Arizona 85253
- Auditor
- Crisell + Associates
- Audited financials
- Franchisor revenue
- $1.6M
- vs $1.3M prior year
Affiliated brands
- periodically develop and we periodically designate for use with the Hotel System
- APAM Holdings
Other brands the franchisor or its parent operates (Item 1).
Overview
About
GreenTree Inn franchisees operate limited-service hotel properties, managing day-to-day operations including front desk services, housekeeping, maintenance, and guest relations. Franchisees are responsible for local marketing, staffing, and compliance with GreenTree's brand standards while paying 4% royalties on all room revenue regardless of profitability.
- CEO
- Alex Xu
- Headquarters
- AZ
- Founded
- 2014
- FDD year
- 2023
- States available
- 6
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $51K | $61K |
| Equipment, build-out, other | $230K | $1.7M |
| Total initial investment | $301K | $1.8M |
Source: GreenTree Inn Hotel 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $301K – $1.8M
- Better than avg vs category
- Liquid capital req'd
- $51K – $61K
- Better than avg vs category
- Franchise fee
- $20K – $24K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Room Revenue · typical 6–8%
- Ad fund
- Up to 4% of Gross Room Revenue
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Transfer fee | $20K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How GreenTree Inn Hotel Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 17
- Opened
- 1
- Last reporting year
- Closed
- 1
- Turnover rate
- 5.9%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 59%
- vs corporate-owned
- Net growth (yr3)
- +10.0%
- Net unit change last year
- 3-yr CAGR
- +22.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 5.9%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
GreenTree Inn presents caution-level risk due to undisclosed financials, franchisor going concern issues, unprotected territories, and a small, slowly-growing system with unclear unit-level profitability.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Crisell + Associates
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 72 / 100 rating
- 01MINORNo Item 19 financial performance representation — cannot verify claimed average revenue or profitability
- 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 03MINORTerritory is unprotected — franchisees face direct competition from other GreenTree locations
- 04MINOROnly 17 units with modest 10% YoY growth — small system size limits brand recognition and purchasing power
- 05MINORWide investment range ($300K-$1.8M) suggests highly variable unit economics with unclear cost drivers
- 06MINOR4% royalty on gross revenue (not net) — franchisees pay even during unprofitable periods
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 31 hrs
- Training location
- On-site and corporate
- POS system
- Property Management System (PMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management System (PMS)
Item 20 · call current owners
Franchisee Contacts
29 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
GreenTree Inn Hotel · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a GreenTree Inn Hotel franchise?
The total investment to open a GreenTree Inn Hotel franchise ranges from $301K – $1.8M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do GreenTree Inn Hotel franchise owners earn?
GreenTree Inn Hotel does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is GreenTree Inn Hotel's franchise failure rate?
SBA 7(a) loan charge-off data is not available for GreenTree Inn Hotel (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many GreenTree Inn Hotel franchise locations are there?
As of their most recent FDD filing, GreenTree Inn Hotel has 17 total units in the United States, including 9 franchised units and 7 company-owned units. 1 new units were opened in the latest reporting year.
Is GreenTree Inn Hotel a good franchise to buy?
FranchiseVerdict rates GreenTree Inn Hotel as a D-grade franchise with a risk score of 72 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). 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.