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F85/100FDD 2026

Radisson Blu — Litigation & Risk

Other · FDD Items 3, 4 & 5

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Elevated Risk

141 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
141
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
85 / 100
FranchiseVerdict composite
Rating
AVOID
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
7
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Maryland
State whose law governs disputes — relevant if you're not based there

What drove the 85/100 rating

Risk Score Breakdown

  1. 01MEDExtreme financial opacity: no average revenue or net income disclosed despite 20-year, $25M+ commitment
  2. 02MINORCatastrophic unit collapse: only 3 units operating with unknown growth trajectory suggests system failure or severe contraction
  3. 03HIGHSystemic litigation pattern: 120+ franchisor royalty recovery actions indicate widespread franchisee defaults and financial distress
  4. 04HIGHMultiple fraud allegations: class actions for undisclosed destination marketing fees and RICO claims suggest deceptive practices
  5. 05HIGHGoing concern status false: red flag indicating potential insolvency or structural viability concerns at corporate level
  6. 06MINORZero territory protection: franchisees face cannibalization risk with no geographic exclusivity despite massive capex
  7. 07MINOR6% royalty on non-transparent revenues: no Item 19 means franchisees cannot verify actual earnings or ROI benchmarks
  8. 08MINORDisproportionate risk-reward: $25M+ investment with minimal financial disclosure and collapsing unit base

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.