GreenTree Inn Hotel Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
GreenTree Inn is a limited-service hotel franchise offering value-priced rooms for business and leisure travelers. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue.
FranchiseVerdict summary · 2026
A GreenTree Inn Hotel franchise requires a total initial investment of $301K – $1.8M, including a $20K – $24K franchise fee and an ongoing 4.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $301K – $1.8M
- 15th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 1st pct Lodging
- Units
- 18
- 27th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $301K – $1.8M including a $20K franchise fee, 4.0% ongoing royalty.
- RETURNSRevenues comprise Franchise Fees ($750,809), Management Fees ($360,109), and Rewards Program Fees ($170,403) for FY2022; total $1,281,321. Other Income of $75,252 (income from investment $62,874, miscellaneous $12,378) reported separately below operating income. Auditor located in Signal Hill, California; report dated April 28, 2023.
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- GreenTree Hospitality Group, Inc.
- Parent company
- GreenTree Inns Hotel Management Group, Inc.
- CEO title
- President, Treasurer and Secretary
- Alex Xu
- Incorporated in
- DE
- HQ
- 6270 N. Scottsdale Road, Suite 270, Scottsdale, Arizona 85253
- Auditor
- Crisell + Associates
- Audited financials
- Franchisor revenue
- $1.3M
- vs $1.6M 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
- CEO
- Alex Xu
- Headquarters
- AZ
- Founded
- 2014
- FDD year
- 2023
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 89% below the typical lodging franchise.
Source: FDD 2023 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $51K – $61K
- Top 40% of category vs category
- Franchise fee
- $20K – $24K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $20K |
| Inventory (initial) | $6K – $31K |
| Total fee load | 8.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
GreenTree Inn Hotel did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one GreenTree Inn Hotel unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
8%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
Revenues comprise Franchise Fees ($750,809), Management Fees ($360,109), and Rewards Program Fees ($170,403) for FY2022; total $1,281,321. Other Income of $75,252 (income from investment $62,874, miscellaneous $12,378) reported separately below operating income. Auditor located in Signal Hill, California; report dated April 28, 2023.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 22.2% CAGR over 3 years across 18 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How GreenTree Inn Hotel Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.1%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 61%
- vs corporate-owned
- Net growth (3-yr)
- +22.2%
- Net unit change over 3 years
- 3-yr CAGR
- +22.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- 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 · 4 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $5.0M
- Median loan
- $5.0M
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation required to be disclosed.
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: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Arizona (within 10 miles of franchisor's then current principal business address) |
| Jury trial waiver | No |
| Governing law | AZ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 31 hrs
- Training location
- Your Hotel
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisor approves site; franchisee selects and acquires
- Franchisor financing
- Not offered
- Item 10
- POS system
- Property Management System (PMS) and Central Reservation System (CRS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management System (PMS) and Central Reservation System (CRS)
Item 20 · call current owners
Franchisee Contacts
9 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 Item 19 in the GreenTree Inn Hotel FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the GreenTree Inn Hotel FDD and qualifies whose outlets they describe.
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 18 total units in the United States, including 11 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 A-grade franchise with a verdict score of 70 out of 100 (higher is better), 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
Are you the franchisor?
If you represent GreenTree Inn Hotel, you can request corrections or provide updated information.
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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.