InterContinental Hotels & Resorts
Bottom line
- Total investment — 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 AVOID with a risk score of 85/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- 69 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 InterContinental Hotels & Resorts unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Overview
About
Franchisees operate full-service luxury hotel properties under the InterContinental Hotels & Resorts brand, managing guest accommodations, food and beverage operations, conference facilities, and ancillary services. Daily operations include housekeeping, front desk, concierge, restaurant management, and compliance with corporate brand standards while remitting 6% of room revenue and 2% of F&B revenue as ongoing royalties.
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 · 14 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a HIGH RISK franchise opportunity featuring a severely contracted hotel system (21 units) plagued by litigation, going concern warnings, and complete financial opacity, making it unsuitable for most investors.
Score breakdown · what drove the 85 / 100 rating
- 01HIGHGoing concern status is FALSE — indicates potential solvency or operational viability issues at corporate level
- 02HIGHExtensive litigation history including breach of contract, unpaid franchise fees, and class actions suggests systemic franchisor-franchisee relationship problems
- 03MINOROnly 21 units with unknown growth trajectory suggests system contraction or stagnation in a major hotel brand
- 04MINORNo financial disclosure (avg revenue, net income, Item 19) prevents validation of ROI claims and franchisee profitability
- 05MINORUnprotected territory combined with high royalty burden (6% rooms + 2% F&B) creates direct competition risk within same system
- 06MINOR20-year term lock-in with no territorial protection creates long-term exposure to system cannibalization
- 07HIGHTrademark disputes mentioned in litigation history raises questions about brand integrity and legal standing
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
InterContinental Hotels & Resorts · FDD (2024) PDF