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.
- Rated CAUTION 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
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 LXR unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
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.
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 · 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 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
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.
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
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
LXR · FDD (2026) PDF