Park Plaza Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Park Plaza is a full-service hotel franchise offering upscale properties. Franchisees own and operate the hotels, managing guest services, food and beverage, and revenue under brand standards.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $11.9M
- 47th pct Lodging
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 4.0%
- 1st pct Lodging
- Units
- 1
- 8th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $11.9M including a $50K franchise fee, 4.0% ongoing royalty.
- RETURNSAudited consolidated financial statements of Radisson Hospitality, Inc. (parent/guarantor), in USD thousands, FY ended Dec 31, 2021 (yr1) and Dec 31, 2020 (yr2). Franchisor Park Hospitality LLC's own financials are guaranteed by Radisson Hospitality, Inc. Net (loss) 2021 = $(23,854)K. Revenue single line item, not disaggregated.
- RISKVerdict D (Below average), verdict score 30/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- Park Hospitality LLC
- Parent company
- Radisson Hospitality, Inc.
- Ultimate parent
- Jinjiang International Holdings Co., Ltd.
- Incorporated in
- DE
- HQ
- 1601 Utica Avenue South, Suite 700, St. Louis Park, Minnesota 55416
- Auditor
- Not specified in text excerpt
- Audited financials
- Franchisor revenue
- $221.6M
- vs $198.3M prior year
Overview
About
- CEO
- M. Thomas Buoy
- Headquarters
- MN
- Founded
- 2000
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown19 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
- Middle of category vs category
- Liquid capital req'd
- $1.0M – $1.8M
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 4.0%
- percentage · 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 |
| Technology fee | $11 |
| Training fee | $1K |
| Transfer fee | $0 |
| Inventory (initial) | $400K – $2.4M |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Park Plaza did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Park Plaza unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Audited consolidated financial statements of Radisson Hospitality, Inc. (parent/guarantor), in USD thousands, FY ended Dec 31, 2021 (yr1) and Dec 31, 2020 (yr2). Franchisor Park Hospitality LLC's own financials are guaranteed by Radisson Hospitality, Inc. Net (loss) 2021 = $(23,854)K. Revenue single line item, not disaggregated.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging averages
How Park Plaza Compares
Is the system healthy?
Source: FDD 2022 · Item 20
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
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 Item 3. No actions filed against franchisees in the last fiscal year.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in text excerpt
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 30 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 45 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Minnesota (Hennepin County) |
| Jury trial waiver | Yes |
| Governing law | MN |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3. No actions filed against franchisees in the last fiscal year.
Items 10, 11
Training & Operations
- Classroom training
- 44 hrs
- On-the-job training
- 0 hrs
- Training location
- Minneapolis, MN; your Hotel; regional locations; online
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisee selects, subject to franchisor consent
- Franchisor financing
- Offered
- Item 10
- 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
3 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 Item 19 in the Park Plaza FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Park Plaza FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 30 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Park Plaza, you can request corrections or provide updated information.
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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.