Bottom line
- Total investment $10.0M including a $75K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 82/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- 92 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 Radisson unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Radisson franchisees operate upscale hotel properties, managing daily operations including housekeeping, front desk, food & beverage, maintenance, and guest services. Revenue derives from room bookings and ancillary hotel services, with corporate franchisor retaining 6% of gross room revenues regardless of profitability, plus marketing and other assessed fees.
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 · 14 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Radisson presents extreme risk: collapsing franchisee base (-8.8% YoY), 85 active collection suits, undisclosed marketing fee litigation, and franchisor going concern issues create a deteriorating system with minimal unit economics transparency.
Score breakdown · what drove the 82 / 100 rating
- 01MINORSevere unit contraction of -8.8% YoY indicates systemic franchisee distress and deteriorating brand health
- 02MINOR85 active collection lawsuits by franchisor suggest widespread franchisee inability to pay royalties, signaling profitability crisis
- 03HIGHMultiple litigations including class action on hidden marketing fees and antitrust/civil rights claims indicate predatory franchisor practices and broken franchisee relationships
- 04MINORNo Item 19 financial disclosure prevents validation of average unit economics and profitability claims
- 05MINORUnprotected territory creates internal competition and cannibalization risk across 58-unit system
- 06HIGHGoing Concern status = False indicates financial distress at corporate franchisor level
- 07MINORHigh initial investment ($10.0M+) paired with 6% royalty rate and declining unit base creates poor recovery probability
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Radisson · FDD (2024) PDF