Project Q by Hilton
Formerly known as LivSmart Studios by Hilton
Bottom line
- Total investment $2.4M 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 CAUTION with a risk score of 75/100.
- 11 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 Project Q by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Project Q franchisees operate select-service hotel properties under the Hilton brand umbrella, managing daily operations including housekeeping, front desk, maintenance, and guest services while paying 5% of gross room revenue to Hilton. Franchisees are responsible for property-level marketing, staffing, and compliance with Hilton brand standards across a 23-year agreement.
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
Project Q represents extreme risk: a zero-unit franchise with no operating examples, pending litigation, undisclosed financials, unprotected territory, and questionable parent company viability—making due diligence impossible and ROI unvalidatable.
Score breakdown · what drove the 75 / 100 rating
- 01MINORZero operating units with unknown growth trajectory indicates brand has not successfully launched or is in critical early stage with no proof of concept
- 02MINORNo average revenue or net income disclosure prevents ROI validation; combined with $2.4M investment and 23-year term, franchisee bears extreme uncertainty
- 03HIGHMultiple pending antitrust and breach of contract litigations suggest systemic operational/compliance issues and potential liability exposure for franchisees
- 04MINORUnprotected territory creates direct competition risk with other franchisees and Hilton's own properties, eroding revenue protection
- 05MINOR5% royalty on gross rooms revenue is aggressive given no demonstrated unit economics or franchisee profitability data
- 06MINOR23-year term is unusually long for hospitality with no performance milestones or exit clauses mentioned
- 07HIGHGoing Concern = False status suggests parent company financial instability or operational viability 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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Project Q by Hilton · FDD (2025) PDF