MOD A Sonesta CollectionFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A MOD A Sonesta Collection franchise does not disclose total investment in its current FDD, including a $75K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $1.7M
- 27th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 0
- 0th 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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
18 legal cases disclosed in the FDD. Read Item 3 before signing.
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.
- Verdict B (Above Average) with a risk score of 57/100.
- 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
- Legal entity
- Sonesta RL Hotels Franchising Inc.
- Parent company
- Red Lion Hotels Corporation
- Incorporated in
- WA
- HQ
- 400 Centre Street, Newton, Massachusetts 02458
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $54.0M
- vs $55.6M prior year
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.
- CEO
- John Murray
- Headquarters
- MA
- Founded
- 1986
- FDD year
- 2024
- States available
- 0
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.7M
- Better than avg vs category
- Liquid capital req'd
- $525K – $1.8M
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 16.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $9 |
| Transfer fee | $75K |
| Renewal fee | $75K |
| Total fee load | 16.5% 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 MOD A Sonesta Collection Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
Available to sell in · Item 12
- Michigan
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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
Score breakdown · what drove the 57 / 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
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 18 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 31 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Oracle OPERA Cloud Property Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Oracle OPERA Cloud Property Management System
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MOD A Sonesta Collection · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do MOD A Sonesta Collection franchise owners earn?
MOD A Sonesta Collection 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 MOD A Sonesta Collection's franchise failure rate?
SBA 7(a) loan charge-off data is not available for MOD A Sonesta Collection (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.
Is MOD A Sonesta Collection a good franchise to buy?
FranchiseVerdict rates MOD A Sonesta Collection as a B-grade franchise with a risk score of 57 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.