Radisson Individuals Franchise Cost, Revenue & Review 2026
- Investment
- $2.9M – $56.2M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Radisson Individuals is an upscale hotel franchise for independent properties affiliating with the Radisson brand. Franchisees own and operate the hotels, managing guest services and revenue under brand standards.
FranchiseVerdict summary · 2026
A Radisson Individuals franchise requires a total initial investment of $2.9M – $56.2M, including a $75K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $2.9M – $56.2M
- 29th pct Lodging
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 1
- 7th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $2.9M – $56.2M including a $75K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative, pipeline stalled: 2 agreements signed but not yet open against 1 open outlets (Item 20).
- LEGAL95 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
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- FDD Item 1, page 9 of the 2024 FDD
- Predecessor
- Radisson Hotels International, Inc.
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- Delaware
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 9
11 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.
- ASCEND HOTEL COLLECTIONA
- Clarion / Clarion PointeB
- Country Inn & Suites by RadissonB
- Econo LodgeB
- Everhome SuitesB
- MainStay SuitesA
- Park Inn by RadissonD
- RODEWAY INNB
- Sleep InnB
- Suburban StudiosB
- WoodSpring SuitesB
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 232% above the typical lodging franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | — | — | |
| Construction-Related Extension Fee | $0 | $5K | |
| Opening Date Rescheduling Fee | $0 | $3K | |
| Real Estate | — | — | |
| Improvements | $150K | $37.5M | |
| Design & Engineering Costs | $50K | $2.0M | |
| Furniture, Fixtures & Equipment | $0 | $10.0M | |
| Exterior Signage and On-Premise Plaques | $200 | $200K | |
| Miscellaneous Pre-Opening Costs | $1.2M | $1.9M | |
| Opening Inventory | $300K | $2.5M | |
| ORACLE Opera Cloud PMS Initial Investment | $30K | $30K | |
| Onboarding, Sales and Hospitality Leadership Certification Fees | $8K | $13K | |
| Food and Beverage Opening Support Fee and Restaurant Concept Creation | $21K | $38K | |
| Food and Beverage Sales System | $6K | $25K | |
| Pre-Opening Photography | $4K | $5K | |
| IDeaS Fees | $5K | $5K | |
| Insurance | $85K | $275K | |
| Additional Funds 3 Months | $1.0M | $1.8M | |
| Total initial investment | $2.9M | $56.2M |
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
- $2.9M – $56.2M
- Top 40% of category vs category
- Liquid capital req'd
- $1.0M – $1.8M
- Middle of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 6.0%
- 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 |
| Transfer fee | $75K |
| Renewal fee | $75K |
| Inventory (initial) | $300K – $2.5M |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Radisson Individuals makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Radisson Individuals unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Lodging median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth roughly flat at 0.0%.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Radisson Individuals Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 100.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 2.00 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 25.0%
- Units that stayed open
- Ceased ops
- 100.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
3 pending parent-level matters (Canadian class action seeking $403M, RICO/antitrust suit by ~90 Choice owners) and Item 19 not disclosed. Parent financials strong (net worth $35,598,000, net income $258,507,000 on $1.3B revenue). Litigation is parent/system-wide and routine for a large hotel franchisor; brand itself is 1 unit.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 pending matters disclosed: (1) a Canadian class action (Norma Knuth) alleging wrongful collection of destination marketing fees, seeking $403M in restitution/damages, class not yet certified; (2) a RICO/antitrust suit by ~90 current/former Choice franchise owners (Jai Sai Baba v. Choice) stayed pending arbitration, with a related arbitration (Choice v. DIP Hospitality) awaiting an award; (3) a breach of contract/trade secrets suit by a Country Inn & Suites licensee (T&T Management) regarding brand protection and guest data, motions pending. Additionally, dozens of routine actions to collect unpaid royalties/debts from franchisees and one IP enforcement action. 4 resolved matters in the prior years, including a $740,072 arbitration award against Choice (Highmark Lodging) and a $603,483 award in favor of Choice (Dahya Investments).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor total revenue of $1,311.8M is for the entire Choice Hotels International system (all brands including Radisson Individuals, Comfort, Quality, Sleep Inn, etc.), not Radisson Individuals-specific. Radisson Individuals brand itself had only 1 franchised hotel in the US as of 12/31/2023.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 40 / 100 verdict
- 01MINOR3 parent-level suits (Choice system) - routine at scale
- 02MEDItem 19 not disclosed
- 03MINORStrong parent financials: net income $258.5M on $1.3B revenue
- 04MINORSingle-unit brand footprint
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | Yes |
| Exclusive territoryℹ | 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 95 |
View Item 3 litigation summary
3 pending matters disclosed: (1) a Canadian class action (Norma Knuth) alleging wrongful collection of destination marketing fees, seeking $403M in restitution/damages, class not yet certified; (2) a RICO/antitrust suit by ~90 current/former Choice franchise owners (Jai Sai Baba v. Choice) stayed pending arbitration, with a related arbitration (Choice v. DIP Hospitality) awaiting an award; (3) a breach of contract/trade secrets suit by a Country Inn & Suites licensee (T&T Management) regarding brand protection and guest data, motions pending. Additionally, dozens of routine actions to collect unpaid royalties/debts from franchisees and one IP enforcement action. 4 resolved matters in the prior years, including a $740,072 arbitration award against Choice (Highmark Lodging) and a $603,483 award in favor of Choice (Dahya Investments).
Items 10, 11
Training & Operations
- Classroom training
- 61 hrs
- On-the-job training
- 16 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast, Inc.
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Radisson Individuals franchise?
The total investment to open a Radisson Individuals franchise ranges from $2.9M – $56.2M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Radisson Individuals franchise owners earn?
Radisson Individuals makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Radisson Individuals?
Radisson Individuals is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Radisson Individuals FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Radisson Individuals FDD and qualifies whose outlets they describe.
What is Radisson Individuals's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Radisson Individuals (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 Individuals franchise locations are there?
As of their most recent FDD filing, Radisson Individuals has 1 total units in the United States, including 1 franchised units and 0 company-owned units.
Is Radisson Individuals a good franchise to buy?
FranchiseVerdict rates Radisson Individuals as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.