Bottom line
- Total investment $17.0M – $29.1M including a $100K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100.
- 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 Hampton by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Hampton by Hilton franchisees operate limited-service hotel properties under the Hilton brand, managing guest check-in/check-out, housekeeping, front desk operations, and maintenance while adhering to strict brand standards. Franchisees generate revenue primarily from room bookings (subject to 6% royalty) and ancillary services (breakfast, parking, etc.), while bearing all operational costs including labor, utilities, property maintenance, and corporate marketing fees.
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 · 31 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hampton by Hilton presents meaningful caution-level risk due to anemic unit growth, absent financial transparency, substantial capital requirements, active litigation portfolio, and contractual constraints that favor the franchisor over franchisee protection.
Score breakdown · what drove the 62 / 100 rating
- 01MINORStagnant unit growth (0.9% YoY) suggests market saturation or franchisee struggles in mature brand
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents ROI validation and suggests weak unit economics
- 03MINORHigh capital requirement ($17-29M) combined with 6% royalty on gross rooms revenue creates significant fixed obligations
- 04HIGHMultiple active litigation disclosures including antitrust class actions, deceptive trade practice settlements, and contract disputes indicate systemic legal/operational issues
- 05MINORUnprotected territory enables brand cannibalization and direct competition from other Hampton franchisees within market radius
- 06MINOR22-year franchise term is longer than industry standard (typically 10-15 years), reducing flexibility and increasing long-term risk exposure
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
93 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hampton by Hilton · FDD (2026) PDF