Outset Collection by Hilton
Bottom line
- Total investment $2.2M including a $50K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 82/100.
- 14 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 Outset Collection by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Overview
About
Franchisees operate upscale hotel properties under the Outset Collection by Hilton brand, managing daily operations including guest services, housekeeping, food & beverage, and front-desk operations. They pay 5% royalty on gross room revenue to Hilton while bearing full capital and operational costs. The model requires significant working capital and real estate investment to meet luxury brand standards.
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 · 13 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
Outset Collection represents extreme franchise risk: a 2-unit system with active litigation, zero financial disclosure, unprotected territory, and evidence of franchisee financial failure.
Score breakdown · what drove the 82 / 100 rating
- 01MEDExtremely limited unit count (2 units) suggests failed or stalled brand expansion with no disclosed growth trajectory
- 02HIGHMultiple active litigations including breach of contract, antitrust claims, and consumer protection settlements indicate systemic operational and legal issues
- 03MINORZero financial transparency — no Item 19 average revenue/net income disclosure prevents ROI validation on $2.2M investment
- 04MINORUnprotected territory creates direct competition risk and cannibalizes per-unit revenue in thin 5% royalty model
- 05MINOR23-year term lock-in with only 2 operating units suggests insufficient proven unit economics and franchisor viability
- 06MINORCollection suits against former franchisees indicate poor franchisee financial performance and franchisor-franchisee relationship breakdown
- 07HIGHPending antitrust and revenue management software litigation suggests franchisor practices may harm franchisee profitability
- 08HIGHGoing Concern status = False (unclear statement) but 2-unit system with litigation raises solvency questions
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Outset Collection by Hilton · FDD (2026) PDF