LxrFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A LXR franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $5.5M
- 34th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 5
- 14th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $5.5M including a $100K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- 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
- Legal entity
- HILTON FRANCHISE HOLDING LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102 USA
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
Overview
About
LXR franchisees operate luxury hotel properties, managing guest accommodations, dining, and amenities while remitting 5% of gross room revenue to the franchisor. Day-to-day operations include front-desk services, housekeeping, event management, and revenue optimization within brand standards that are currently subject to breach of contract litigation. Franchisees are also entangled in franchisor disputes over revenue management software and data sharing practices.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 4
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $5.5M
- Better than avg vs category
- Liquid capital req'd
- $1.9M – $2.4M
- Near category avg vs category
- Franchise fee
- $100K – $150K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Lxr Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +25.0%
- Net unit change last year
- 3-yr CAGR
- +66.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
LXR presents extreme risk: going concern status, active multi-front litigation on core operations, undisclosed financials, minimal unit base, and unprotected territory create a potential franchise collapse scenario.
Litigation (Item 3)
Five pending matters: (1) Bow Hospitality LLC v. Hilton - franchisee breach of contract dispute over Hampton Inn termination for non-compliance with brand standards (Superior Court, Rhode Island); (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - consolidated class action alleging Sherman Act violations regarding improper information sharing and rate-setting through IDeaS revenue management software; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - consolidated class action alleging Sherman Act violations regarding information sharing and rate-setting; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - class action alleging Sherman Act violations regarding data exchange through Amadeus; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - class action (description incomplete in source document). All antitrust matters involve Hilton as defendant alleging improper pricing coordination.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 75 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or structural issues at corporate level
- 02HIGHMultiple active litigation vectors including pending breach of contract suits on brand standards, putative class action antitrust litigation on revenue management, and concluded deceptive trade practices cases suggest systemic operational and governance problems
- 03MINORZero financial disclosure (no average revenue, no net income data, no Item 19) prevents meaningful ROI analysis on a $5.47M investment
- 04MINOROnly 5 units operating with 25% YoY growth is an extremely small system — minimal operational support infrastructure and high corporate overhead risk per unit
- 05MINORNo territory protection exposes franchisees to direct brand competition and uncontrolled market saturation
- 06MINOR5% royalty on gross rooms revenue creates misaligned incentives — corporate profits regardless of franchisee profitability
- 07MINOR23-year term is unusually long without demonstrated unit economics or brand equity
- 08MINORHistorical Sherman Act violations indicate prior antitrust concerns that may recur
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 15 |
View Item 3 litigation summary
Five pending matters: (1) Bow Hospitality LLC v. Hilton - franchisee breach of contract dispute over Hampton Inn termination for non-compliance with brand standards (Superior Court, Rhode Island); (2) In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.) - consolidated class action alleging Sherman Act violations regarding improper information sharing and rate-setting through IDeaS revenue management software; (3) Hanson Dai v. SAS Institute Inc. (N.D. Cal.) - consolidated class action alleging Sherman Act violations regarding information sharing and rate-setting; (4) Ryan Segal v. Amadeus IT Group (N.D. Ill.) - class action alleging Sherman Act violations regarding data exchange through Amadeus; (5) Jeanette Portillo v. CoStar Group (W.D. Wash.) - class action (description incomplete in source document). All antitrust matters involve Hilton as defendant alleging improper pricing coordination.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and off-site
- POS system
- OnQ
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
LXR · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do LXR franchise owners earn?
LXR does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is LXR's franchise failure rate?
SBA 7(a) loan charge-off data is not available for LXR (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many LXR franchise locations are there?
As of their most recent FDD filing, LXR has 5 total units in the United States, including 3 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is LXR a good franchise to buy?
FranchiseVerdict rates LXR as a D-grade franchise with a risk score of 75 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.