RadissonFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Radisson franchise does not disclose total investment in its current FDD, including a $75K franchise fee and an ongoing 6.0% royalty[2]. The 2024 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 2024 FDD issuance
Overview
- Investment
- $10.0M
- 39th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 58
- 27th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The system contracted 9% year-over-year. Investigate why units are closing.
92 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $10.0M including a $75K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Average and Median ADR and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict F (Bottom Quintile) with a risk score of 78/100.
- 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
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.5B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 25
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Feenot refundable | $75K | $150K | |
| Construction-Related Extension Feenot refundable | $0 | $5K | |
| Opening Date Rescheduling Feenot refundable | $0 | $3K | |
| Real Estate | — | — | |
| Improvementsnot refundable | $5.6M | $37.5M | |
| Design & Engineering Costsnot refundable | $500K | $1.3M | |
| Furniture, Fixtures & Equipmentnot refundable | $1.1M | $10.0M | |
| Exterior Signagenot refundable | $50K | $200K | |
| Miscellaneous Pre-Opening Costsnot refundable | $1.2M | $1.5M | |
| Opening Inventorynot refundable | $300K | $2.0M | |
| ORACLE Opera Cloud PMS Initial Investmentnot refundable | $30K | $30K | |
| Onboarding, Sales and Hospitality Leadership Certification Feesnot refundable | $8K | $13K | |
| Food and Beverage Opening Support Fee and Restaurant Concept Creationnot refundable | $10K | $23K | |
| Food and Beverage Sales Systemnot refundable | $6K | $25K | |
| Pre-Opening Photographynot refundable | $4K | $10K | |
| IDeaS Feesnot refundable | $5K | $5K | |
| Insurancenot refundable | $85K | $275K | |
| Additional Funds 3 Monthsnot refundable | $1.0M | $1.8M | |
| Total initial investment | $10.0M | $54.8M |
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
- $10.0M
- Better than avg vs category
- Liquid capital req'd
- $1.0M – $1.8M
- Near category avg vs category
- Franchise fee
- $75K – $75K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $11 |
| Transfer fee | $75K |
| Inventory (initial) | $300K – $2.0M |
| Total fee load | 20.0% of rev |
Financial Performance
This brand's FDD disclosed "Average and Median ADR and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
Financial performance by segment
Item 19 detail
Where the franchisor disclosed sales by quartile, unit age, state, or service line — the actual distribution behind the average.
System-wide
| Segment | Sample | Avg |
|---|---|---|
| all units | 49 | — |
By service line
| Segment | Sample | Avg |
|---|---|---|
| average daily rate | 49 | $136 |
| revenue per available room | 49 | $79 |
vs Lodging averages
How Radisson Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 1
- Last reporting year
- Closed
- 6
- Turnover rate
- 10.3%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (yr3)
- -8.8%
- Net unit change last year
- 3-yr CAGR
- -25.7%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 3
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Maryland
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $20.0M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Radisson's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 78 / 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Site-only |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 92 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 61 hrs
- On-the-job training
- 16 hrs
- Training location
- On-site and corporate
- Site selection
- joint
- 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
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Radisson · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do Radisson franchise owners earn?
Radisson 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 Radisson's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Radisson (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 Radisson franchise locations are there?
As of their most recent FDD filing, Radisson has 58 total units in the United States, including 70 franchised units and 6 company-owned units. 1 new units were opened in the latest reporting year.
Is Radisson a good franchise to buy?
FranchiseVerdict rates Radisson as a F-grade franchise with a risk score of 78 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.
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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.