MOD A Sonesta Collection
Bottom line
- Total investment $1.7M including a $75K 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.
- 18 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 MOD A Sonesta Collection unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Overview
About
MOD (a Sonesta Collection brand) franchisees operate select-service or limited-service hotel properties under the MOD brand, managing daily operations including housekeeping, front desk, guest services, maintenance, and revenue management. Franchisees must maintain brand standards, pay 5% royalty on gross room revenue, and comply with Sonesta's corporate policies and systems.
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 · 16 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
This is a pre-launch or failing hotel franchise with zero operating units, opaque financials, pending litigation, parent company going-concern warnings, and an unproven business model that carries extreme capital risk.
Score breakdown · what drove the 75 / 100 rating
- 01MINORZero operating franchise units with unknown growth trajectory indicates brand is either pre-launch or experiencing complete system collapse
- 02MINORNo Item 19 financial disclosure (avg revenue/net income) prevents any ROI validation or performance benchmarking
- 03MINORMultiple pending and concluded lawsuits including class action, stockholder disputes, and franchisee contract conflicts suggest systemic corporate governance and franchisor-franchisee relationship problems
- 04HIGHParent company (Sonesta/RLHC merger entity) disclosed 'going concern' accounting doubt signals potential insolvency or financial distress
- 05MINORUnprotected territory with 5% royalty on gross rooms revenue creates margin pressure and direct franchisor-franchisee competition
- 06MINORHigh initial investment ($1.67M) paired with zero operating units means no proven unit economics or franchisee success track record
- 07MINOR20-year term lock-in is excessive given brand immaturity and financial uncertainty of parent company
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
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
MOD A Sonesta Collection · FDD (2024) PDF