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B55/100FDD 2026

Hilton Garden Inn — 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
55 / 100
FranchiseVerdict composite
Rating
MODERATE
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
6
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
$17.4M
Avg loan size
$2.9M
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
No
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 55/100 rating

Risk Score Breakdown

  1. 01MEDMassive capital requirement ($25.5M-$37.4M) with no disclosed average revenue or net income to validate ROI projectability
  2. 02MINORStagnant unit growth (1.2% YoY) suggests market saturation or franchisee dissatisfaction in mature 759-unit system
  3. 03HIGHMultiple active litigation matters including antitrust allegations over revenue management software and consumer protection lawsuits regarding mandatory fee disclosure transparency
  4. 04MINORNo territorial protection combined with unprotected revenue management practices creates competitive vulnerability within own system
  5. 05MEDItem 19 financial performance representations not disclosed, preventing independent validation of claimed profitability across unit portfolio
  6. 06MINOR5.5% royalty on gross rooms revenue (not net) creates fixed burden during occupancy downturns without proportional cost relief

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.