Bottom line
- Total investment $9.8M – $44.9M including a $75K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $124/year (median $119).
- Rated MODERATE with a risk score of 67/100.
- 63 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 Hotel Indigo unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Hotel Indigo franchisees own and operate upscale boutique hotels in the midscale-to-upper-midscale segment, typically managing 100-300 rooms. Day-to-day operations include front desk/housekeeping management, guest services, revenue management, vendor relationships, and compliance with brand standards while paying 5% of gross room revenue to corporate.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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
Hotel Indigo presents moderate-to-caution risk: a contracting system with active litigation, no earnings transparency, unprotected territories, and substantial capital requirements that lack corresponding profitability disclosure.
Score breakdown · what drove the 67 / 100 rating
- 01MINORDeclining unit count (-4.2% YoY) indicates system contraction and potential franchisee struggles
- 02MINORNo average net income disclosure prevents assessment of actual profitability despite $124.05k avg revenue
- 03HIGHMultiple active litigation cases including class action cyber security breach raise operational and legal risks
- 04MINORUnprotected territory creates direct competition risk from other Hotel Indigo franchisees in same market
- 05MEDHigh capital investment range ($9.8M-$44.9M) combined with undisclosed net income creates opacity on ROI
- 06MINOR5% royalty on gross rooms revenue (not net) means fees charged regardless of profitability
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
72 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hotel Indigo · FDD (2024) PDF