Radisson BluFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Radisson Blu franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $25.3M
- 51st pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 3
- 12th 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
Franchising since 1968. Systems this mature have refined operations and brand recognition.
141 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $25.3M including a $100K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Average performance of franchised and managed hotels" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 55/100.
- 141 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.
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.6B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Radisson Blu franchisees operate upscale hotel properties (4-5 star segment), managing day-to-day operations including front desk, housekeeping, food & beverage, maintenance, and revenue management while paying 6% royalties on gross room revenues to corporate and adhering to brand standards across a portfolio typically spanning 100-300+ rooms.
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2026
- States available
- 3
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Feenot refundable | $100K | $100K | |
| Construction-Related Extension Fee per 3 month extensionnot refundable | $0 | $5K | |
| Opening Date Rescheduling Fee per each reschedulingnot refundable | $0 | $3K | |
| Real Estate | — | — | |
| Property Improvementsnot refundable | $19.5M | $140.8M | |
| Permits, Licenses and Government Feesnot refundable | — | — | |
| Professional Design Servicesnot refundable | $1.1M | $3.0M | |
| Mandatory On-Premises Signs (including freight and installation, plus maintenance and insurance)not refundable | $60K | $240K | |
| Miscellaneous Pre-Opening Costsnot refundable | $1.3M | $2.7M | |
| Opening Inventory of Suppliesnot refundable | $865K | $5.9M | |
| ORACLE Opera Cloud PMS Initial Investmentnot refundable | $14K | $40K | |
| Onboarding, Sales and Hospitality Leadership Certification Feesnot refundable | $8K | $8K | |
| Food and Beverage Opening Support Fee and Restaurant Concept Creationnot refundable | $36K | $58K | |
| Food and Beverage Sales Systemnot refundable | $6K | $25K | |
| Pre-Opening Photographynot refundable | $4K | $10K | |
| IDeaS Feesnot refundable | $5K | $5K | |
| Insurancenot refundable | $125K | $350K | |
| Styling & Accessorizingnot refundable | $20K | $40K | |
| Additional Funds - 3 Monthsnot refundable | $2.2M | $3.3M | |
| Total initial investment | $25.3M | $156.6M |
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
- $25.3M
- Near category avg vs category
- Liquid capital req'd
- $2.2M – $3.3M
- Near category avg vs category
- Franchise fee
- $100K – $150K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Room Revenues · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- 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 | $1K |
| Training fee | $8K |
| Transfer fee | $100K |
| Renewal fee | $100K |
| Inventory (initial) | $800K – $5.5M |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Average performance of franchised and managed hotels" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Radisson Blu Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- 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
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Multi-unit owners
- 26.7%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
This is a systemically distressed franchise with extreme financial opacity, near-total unit collapse, pervasive litigation, and allegations of deceptive fee practices—representing acute insolvency and franchisee protection risks.
Litigation (Item 3)
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. et al. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees (DMF) from hotel guests; class not yet certified; plaintiff demanded $403M in restitution; parties anticipate dismissal imminently. (2) Jai Sai Baba, LLC et al. v. Choice Hotels International, Inc. et al. - Approximately 90 current and former franchise owners alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and franchise laws; case stayed pending arbitration as of March 2021; monthly status updates provided. (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of License Agreement, breach of implied covenant of good faith and fair dealing regarding hotel construction and guest data disclosure, and misappropriation of guest data under Defend Trade Secrets Act; Motion to Dismiss filed November 6, 2023.
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
- 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 55 / 100 rating
- 01MEDExtreme financial opacity: no average revenue or net income disclosed despite 20-year, $25M+ commitment
- 02MINORCatastrophic unit collapse: only 3 units operating with unknown growth trajectory suggests system failure or severe contraction
- 03HIGHSystemic litigation pattern: 120+ franchisor royalty recovery actions indicate widespread franchisee defaults and financial distress
- 04HIGHMultiple fraud allegations: class actions for undisclosed destination marketing fees and RICO claims suggest deceptive practices
- 05HIGHGoing concern status false: red flag indicating potential insolvency or structural viability concerns at corporate level
- 06MINORZero territory protection: franchisees face cannibalization risk with no geographic exclusivity despite massive capex
- 07MINOR6% royalty on non-transparent revenues: no Item 19 means franchisees cannot verify actual earnings or ROI benchmarks
- 08MINORDisproportionate risk-reward: $25M+ investment with minimal financial disclosure and collapsing unit base
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 |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 141 |
View Item 3 litigation summary
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. et al. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees (DMF) from hotel guests; class not yet certified; plaintiff demanded $403M in restitution; parties anticipate dismissal imminently. (2) Jai Sai Baba, LLC et al. v. Choice Hotels International, Inc. et al. - Approximately 90 current and former franchise owners alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and franchise laws; case stayed pending arbitration as of March 2021; monthly status updates provided. (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of License Agreement, breach of implied covenant of good faith and fair dealing regarding hotel construction and guest data disclosure, and misappropriation of guest data under Defend Trade Secrets Act; Motion to Dismiss filed November 6, 2023.
Items 10, 11
Training & Operations
- Classroom training
- 51 hrs
- On-the-job training
- 0 hrs
- Training location
- Choice Headquarters, Pike & Rose
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 21 mo
- From signing to launch
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Radisson Blu · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
What do Radisson Blu franchise owners earn?
Radisson Blu 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 Blu's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Radisson Blu (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 Blu franchise locations are there?
As of their most recent FDD filing, Radisson Blu has 3 total units in the United States, including 1 franchised units and 2 company-owned units.
Is Radisson Blu a good franchise to buy?
FranchiseVerdict rates Radisson Blu as a B-grade franchise with a risk score of 55 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.