Outset Collection by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Outset Collection by Hilton franchise does not disclose total investment in its current FDD, including a $50K franchise fee and an ongoing 5.0% royalty[2]. The 2026 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 2026 FDD issuance
Overview
- Investment
- $2.2M
- 30th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 2
- 10th 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 2025. Newer systems carry more uncertainty but may offer better territories.
14 legal cases disclosed in the FDD. Read Item 3 before signing.
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.
- Verdict D (Below Average) with a risk score of 75/100.
- 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
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- CEO experience
- 2013 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing · 27 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Application Fee | $50K | $50K | |
| Property Improvement Plan | $0 | $10K | |
| Market Study | — | — | |
| Environmental Assessment | — | — | |
| Real Property | — | — | |
| Construction and Leasehold Improvements | $0 | $30.4M | |
| Designer & Engineering Fees | $0 | $1.3M | |
| Furniture, Fixtures & Equipment | $0 | $5.5M | |
| Inventory & Operating Equipment | $720K | $1.8M | |
| Signage | $2K | $77K | |
| Computer Hardware and Software Systems | $46K | $114K | |
| Guest Internet Access System | $51K | $73K | |
| Connected Room System | $25K | $29K | |
| Delphi Sales and Events System | $990 | $41K | |
| Digital Payment System | $750 | $2K | |
| Required Pre-Opening Training | $5K | $15K | |
| ADA Consultant Fee | $6K | $15K | |
| Construction/Renovation Extension Fee | $0 | $10K | |
| Insurance | — | — | |
| Organizational Expense | $75K | $285K | |
| Total initial investment | $2.2M | $52.0M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.2M
- Better than avg vs category
- Liquid capital req'd
- $800K – $1.2M
- Near category avg vs category
- Franchise fee
- $50K – $100K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $15K |
| Transfer fee | $100K |
| Total fee load | 9.0% 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 Outset Collection by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
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 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.
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
Outset Collection represents extreme franchise risk: a 2-unit system with active litigation, zero financial disclosure, unprotected territory, and evidence of franchisee financial failure.
Litigation (Item 3)
Hilton Worldwide involved in three pending litigations including one franchisee dispute and two class action antitrust cases
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 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
| Initial term | 23 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 14 |
View Item 3 litigation summary
Hilton Worldwide involved in three pending litigations including one franchisee dispute and two class action antitrust cases
Items 10, 11
Training & Operations
- Classroom training
- 108 hrs
- On-the-job training
- 1 hrs
- Training location
- On-site and corporate
- POS system
- OnQ / Hilton Property Management System (HPMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OnQ / Hilton Property Management System (HPMS)
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Outset Collection by Hilton · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do Outset Collection by Hilton franchise owners earn?
Outset Collection by Hilton 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 Outset Collection by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Outset Collection by Hilton (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 Outset Collection by Hilton franchise locations are there?
As of their most recent FDD filing, Outset Collection by Hilton has 2 total units in the United States, including 2 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Outset Collection by Hilton a good franchise to buy?
FranchiseVerdict rates Outset Collection by Hilton 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.
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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.