FranchiseVerdict
GreenTree Inn Hotel logo
FV-01123·MODERATEStandard71

GreenTree Inn Hotel

Lodging - Hotels & MotelsFranchising since 2016Website
Investment
$301K – $1.8M
25th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
4.0%
4th pct Hotels & Mote…
Units
17
39th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

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.
  • Rated MODERATE with a risk score of 66/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
  • 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
Delaware
HQ
6270 N. Scottsdale Road., Suite 270, Scottsdale, Arizona 85253
Auditor
Crisell + Associates
Audited financials
Franchisor revenue
$1.6M
vs $1.3M 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 GreenTree Inn Hotel 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: $301K–$1.8M
Working capital
$
FDD reports $51K–$61K

Unlevered ROIC · per unit

9%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$1.1M
Payback
137 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

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
Founded
2014
FDD year
2023
States available
6

Item 7 · what it costs

The Vitals

Total investment
$301K – $1.8M
All-in to open one unit
Liquid capital
$51K – $61K
Cash you must have on hand
Franchise fee
$20K
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

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
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
2021
11-1
Franchised units
2022
10
Franchised units
2023
9
Franchised units

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).

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 · 19 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
2
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

66
Risk · 0-100
MODERATE66 / 100

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.

Score breakdown · what drove the 66 / 100 rating

  1. 01MINORNo Item 19 financial performance representation — cannot verify claimed average revenue or profitability
  2. 02HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
  3. 03MINORTerritory is unprotected — franchisees face direct competition from other GreenTree locations
  4. 04MINOROnly 17 units with modest 10% YoY growth — small system size limits brand recognition and purchasing power
  5. 05MINORWide investment range ($300K-$1.8M) suggests highly variable unit economics with unclear cost drivers
  6. 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

Protected territory
No
Initial term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Arizona

Item 11

Training & Operations

Classroom training
24 hrs
On-the-job training
31 hrs
POS system
Property Management System (PMS)
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

29 numbers

Locked
(517) 373-••••
MI
(808) 586-••••
HI
(217) 782-••••
IL

One-time purchase · CSV download · Validation questions included

FDD download

GreenTree Inn Hotel · FDD (2023) PDF

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