Park PlazaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Park Plaza franchise does not disclose total investment in its current FDD, including a $50K franchise fee and an ongoing 4.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $11.9M
- 41st pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 4.0%
- 2nd pct Lodging
- Units
- 1
- 7th 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
Bottom line
- Total investment $11.9M including a $50K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Park Hospitality LLC
- Parent company
- Radisson Hospitality, Inc.
- Incorporated in
- DE
- HQ
- 1601 Utica Avenue South, Suite 700, St. Louis Park, Minnesota 55416
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $198.3M
- vs $221.6M prior year
Overview
About
Park Plaza franchisees operate full-service hotel properties under the Park Plaza brand. Day-to-day operations include managing front desk/housekeeping staff, coordinating reservations and check-ins, maintaining facilities, managing vendor relationships, and ensuring brand compliance across all guest-facing services. Franchisees retain all room revenue minus the 4% royalty paid to the franchisor.
- CEO
- M. Thomas Buoy
- Headquarters
- MN
- Founded
- 2000
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial License Feenot refundable | $50K | $50K | |
| Product Improvement Plan Feenot refundable | $0 | $3K | |
| Construction Commencement Date, Renovation Commencement Date or Opening Date Extension Feenot refundable | $0 | $2K | |
| Real Estatenot refundable | — | — | |
| Improvementsnot refundable | $7.0M | $45.0M | |
| Design & Engineering Costsnot refundable | $600K | $1.4M | |
| Furniture, Fixtures & Equipmentnot refundable | $1.5M | $12.0M | |
| Architectural Plan Review Feenot refundable | $0 | $3K | |
| Technical Services Feenot refundable | $0 | $2K | |
| Exterior Signagenot refundable | $50K | $200K | |
| Miscellaneous Costsnot refundable | $1.2M | $1.8M | |
| Opening Inventorynot refundable | $400K | $2.4M | |
| ORACLE Opera Cloud PMS Initial Investmentnot refundable | $30K | $30K | |
| Training Registration Fees and Expensesnot refundable | $5K | $10K | |
| WebExtraSM Feenot refundable | $150 | $1K | |
| Salesforce Community Feesnot refundable | $440 | $440 | |
| IDeaS Feesnot refundable | $4K | $4K | |
| Start-up Suppliesnot refundable | $10K | $12K | |
| Additional Funds 3 Monthsnot refundable | $1.0M | $1.8M | |
| Total initial investment | $11.8M | $64.7M |
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
- $11.9M
- Near category avg vs category
- Liquid capital req'd
- $1.0M – $1.8M
- Near category avg vs category
- Franchise fee
- $50K
- Better than avg vs category
- Royalty
- 4.0%
- Total Rooms Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $10K |
| Transfer fee | $50K |
| Total fee load | 6.0% 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 Park Plaza Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- 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
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
AVOID: Single-unit, financially distressed franchisor with no performance data, going concern issues, and massive capital requirements in a declining franchise system.
Litigation (Item 3)
No litigation required to be disclosed. In the last fiscal year, no actions were filed against current franchisees to recover amounts owed under applicable agreements.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers 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 100 / 100 rating
- 01HIGHGoing Concern status is FALSE — indicates franchisor financial distress or inability to support franchise system
- 02MINOROnly 1 unit in system with unknown growth trajectory — no viable franchise model validation or unit economics proof
- 03MINORNo Item 19 financial performance disclosure — cannot verify average unit volumes, profitability, or ROI claims
- 04MINORMassive investment requirement ($11.9M+) with no revenue/income transparency creates extreme financial risk
- 05MED4% royalty on room revenue only sustainable if occupancy and ADR data are disclosed and verifiable
- 06MINOR20-year term locks franchisee into relationship with unproven, potentially failing franchisor
- 07MINOR$50K franchise fee is unusually low relative to $11.9M investment — suggests either misaligned incentives or undercapitalized franchisor
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 |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Radius |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed. In the last fiscal year, no actions were filed against current franchisees to recover amounts owed under applicable agreements.
Items 10, 11
Training & Operations
- Classroom training
- 47 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site
- Ongoing training
- Required
- POS system
- ORACLE Opera Cloud PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ORACLE Opera Cloud PMS
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Park Plaza · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
What do Park Plaza franchise owners earn?
Park Plaza 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 Park Plaza's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Park Plaza (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 Park Plaza franchise locations are there?
As of their most recent FDD filing, Park Plaza has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Park Plaza a good franchise to buy?
FranchiseVerdict rates Park Plaza as a F-grade franchise with a risk score of 100 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.