MHO HotelsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A MHO Hotels franchise requires a total initial investment of $72K – $1.2M, including a $10K franchise fee. The 2025 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 2025 FDD issuance
Overview
- Investment
- $72K – $1.2M
- 1st pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- N/A
- Units
- 4
- 13th 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
Bottom line
- Total investment $72K – $1.2M including a $10K franchise fee.
- 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.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Membership Hotel Organization LLC
- Incorporated in
- NJ
- HQ
- 187 Route 130, Bordentown, New Jersey 08505
- Auditor
- Sai CPA Services
- Audited financials
- Franchisor revenue
- $25K
- vs $31K prior year
Overview
About
MHO Hotels franchisees operate and manage hotel properties under the MHO brand, handling daily operations including front desk/housekeeping, guest services, and revenue management. Franchisees are responsible for capex (renovation/maintenance), staffing, marketing, and guest experience while remitting royalties based on room inventory or occupancy.
- CEO
- Priya Patel
- Headquarters
- NJ
- Founded
- 2020
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $50K | $300K |
| Equipment, build-out, other | $12K | $935K |
| Total initial investment | $72K | $1.2M |
Source: MHO Hotels 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $72K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $50K – $300K
- Better than avg vs category
- Franchise fee
- $10K – $10K
- Better than avg vs category
- Royalty
- Option 1: $26.95 per room per month or Option 2: $2.00 pe…
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 31.9%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $26 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $12K – $12K |
| Total fee load | 31.9% 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 MHO Hotels Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 3
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
2
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
MHO Hotels presents HIGH RISK due to a 4-unit system with no growth trajectory, missing financial disclosures, false going concern status, unprotected territory, and inadequate royalty/fee transparency—typical of early-stage or distressed franchise systems.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $9,995
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Sai CPA Services
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 75 / 100 rating
- 01MINOROnly 4 units in system with unknown/likely stagnant growth indicates minimal market traction and unproven model scalability
- 02MINORNo average revenue or net income disclosure (no Item 19) prevents validation of ROI claims and profitability assumptions
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability at corporate level and franchise support risk
- 04MINORNo protected territory creates direct competition risk between franchisees and leaves door open for brand saturation
- 05MINORWide investment range ($71.6K–$1.2M) indicates inconsistent cost structure and unclear capex requirements
- 06MINORDual royalty options without guidance on which is standard/recommended suggests lack of transparent pricing strategy
- 07MINORExtremely low franchise fee ($9,995) relative to hotel capex may indicate weak corporate infrastructure and minimal franchisor support
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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Territory population | 2,000,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 58 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MHO Hotels · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MHO Hotels franchise?
The total investment to open a MHO Hotels franchise ranges from $72K – $1.2M, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do MHO Hotels franchise owners earn?
MHO Hotels 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 MHO Hotels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for MHO Hotels (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 MHO Hotels franchise locations are there?
As of their most recent FDD filing, MHO Hotels has 4 total units in the United States, including 3 franchised units and 1 company-owned units.
Is MHO Hotels a good franchise to buy?
FranchiseVerdict rates MHO Hotels 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.
For franchisors
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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.