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F85/100FDD 2024
InterContinental Hotels & Resorts — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Elevated Risk
69 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
69
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 100
FranchiseVerdict composite
Rating
AVOID
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
—
Defaults
0 loans
Loans charged off or defaulted
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
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Georgia
State whose law governs disputes — relevant if you're not based there
What drove the 85/100 rating
Risk Score Breakdown
- 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 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.