Magnuson Grand® or Magnuson Hotels®
Bottom line
- Total investment $175K – $400K including a $10K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 33 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Magnuson Grand® or Magnuson Hotels® unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Overview
About
Franchisees operate independent or converted hotel properties under the Magnuson Grand/Magnuson Hotels brand, managing daily operations including front desk, housekeeping, maintenance, and guest services. They pay 8% royalty on room revenue while maintaining brand standards, leveraging Magnuson's reservation system and marketing support. Success depends entirely on local market conditions, property quality, and operational execution with minimal franchisor protection or exclusive territory rights.
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 · 20 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
Regulatory history of disclosure violations, minimal financial transparency, underdeveloped franchise system with only 9 units, and lack of territory protection create substantial risk for a six-figure investment.
Score breakdown · what drove the 57 / 100 rating
- 01MINOR2020 regulatory violation by franchisor for selling franchises without disclosure documents or registration — indicates compliance failures and potential deceptive practices
- 02MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or assess realistic profitability for a $175k-$400k investment
- 03MINORTiny system of only 9 units with 125% YoY growth — suggests either recent launch (unproven model) or previous contraction; insufficient peer data for due diligence
- 04MINORNo protected territory — franchisee investment vulnerable to direct cannibalization by franchisor or competing franchisees in same market
- 05MED5-year term is relatively short for hotel franchise requiring significant buildout; limited runway to recoup capital investment
- 06MINOR8% royalty on gross room revenue is high-end for budget/mid-scale hotels; combined with unknown profitability metrics, margin sustainability is unclear
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
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Magnuson Grand® or Magnuson Hotels® · FDD (2024) PDF