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D75/100FDD 2024
Park Inn by Radisson — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Elevated Risk
60 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
60
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
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
7
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
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
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Maryland
State whose law governs disputes — relevant if you're not based there
What drove the 75/100 rating
Risk Score Breakdown
- 01MINOROnly 4 units system-wide indicates severe contraction or failed brand expansion
- 02HIGHMultiple active litigations including class action, anti-competitive claims, and trade secret misappropriation suggest systemic operational/legal problems
- 03MINORNo Item 19 (Average Unit Volume) disclosure prevents ROI validation and suggests poor system performance
- 04HIGHGoing Concern status is FALSE, indicating franchisor financial viability questions
- 05MINORUnprotected territory creates direct competition risk from other franchisees
- 06MED5.5% royalty on undisclosed revenues with no profitability data creates revenue uncertainty
- 07MINORDiscriminatory practice allegations by franchisee group suggest franchisor-franchisee relationship breakdown
- 08MINORChoice Hotels' royalty recovery lawsuits indicate payment compliance issues across system
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.