B58/100FDD 2026
My Place Hotels — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Moderate — Review
1 case disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
6
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$22.2M
Avg loan size
$3.7M
Participating lenders
5
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
South Dakota
State whose law governs disputes — relevant if you're not based there
What drove the 58/100 rating
Risk Score Breakdown
- 01HIGHActive litigation with former franchisee alleging misrepresentations and sales process violations raises credibility concerns about franchisor disclosures
- 02MINORMinimal unit growth (2.0% YoY) across 78 units suggests stagnant system expansion and potential market saturation or franchisee dissatisfaction
- 03MINORNo average revenue or net income disclosure (Item 19) prevents validation of the $50,000 franchise fee ROI and profitability claims
- 04MINORVariable royalty structure (0-4.75%) creates uncertainty; marginal properties may never reach 60% occupancy, limiting franchisor support incentives
- 05MINOROccupancy-based royalty floor of 0% until 50% occupancy may indicate franchisor prioritizes risk-transfer to franchisees during ramp-up periods
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.