Bottom line
- Total investment $25.3M including a $100K 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 85/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- 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
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 Blu unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
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.
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 · 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 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
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.
Score breakdown · what drove the 85 / 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
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
9 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Radisson Blu · FDD (2026) PDF