Radisson IndividualsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Radisson Individuals 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
- $2.9M
- 31st pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 1
- 7th 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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Franchised units fell from 1 to 0 over 3 years. Investigate why operators are leaving.
95 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $2.9M including a $75K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 88/100.
- 95 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.
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate independent upscale hotel properties under the Radisson Individuals brand, managing daily operations including guest services, housekeeping, maintenance, and revenue management. Franchisees pay a 6% royalty on gross room revenues and must comply with brand standards while relying on the franchisor for marketing, reservations systems, and operational support.
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Feenot refundable | $75K | $75K | |
| Construction-Related Extension Feenot refundable | $0 | $5K | |
| Opening Date Rescheduling Feenot refundable | $0 | $3K | |
| Real Estatenot refundable | — | — | |
| Improvementsnot refundable | $150K | $37.5M | |
| Design & Engineering Costsnot refundable | $50K | $2.0M | |
| Furniture, Fixtures & Equipmentnot refundable | $0 | $10.0M | |
| Exterior Signage and On-Premise Plaquesnot refundable | $200 | $200K | |
| Miscellaneous Pre-Opening Costsnot refundable | $1.2M | $1.9M | |
| Opening Inventorynot refundable | $300K | $2.5M | |
| 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 | $21K | $38K | |
| Food and Beverage Sales Systemnot refundable | $6K | $25K | |
| Pre-Opening Photographynot refundable | $4K | $5K | |
| IDeaS Feesnot refundable | $5K | $5K | |
| Insurancenot refundable | $85K | $275K | |
| Additional Funds 3 Monthsnot refundable | $1.0M | $1.8M | |
| Total initial investment | $2.9M | $56.3M |
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
- 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 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 |
| Transfer fee | $75K |
| Renewal fee | $75K |
| Inventory (initial) | $300K – $2.5M |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Radisson Individuals Compares
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
- 50.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -50.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 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 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
Radisson Individuals is a collapsing franchise system with a single remaining unit, facing existential financial distress, aggressive litigation, and franchisor-initiated collections indicating systemic franchisee failure.
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 88 / 100 rating
- 01MINORSystem collapsed 50% YoY (1 unit remaining) — franchise is effectively defunct
- 02HIGHGoing concern warning indicates franchisor may be financially unstable and unable to support franchisees
- 03MINOR87 royalty collection actions in one year suggests widespread franchisee financial distress and franchisor desperation
- 04MINORMultiple pending class action lawsuits (destination marketing fees, anti-competitive practices) expose franchisees to liability and reputational risk
- 05MINORNo average revenue or net income disclosure (Item 19) prevents any meaningful financial due diligence
- 06MEDHigh 6% royalty rate on declining RevPAR environment with no disclosed unit economics
- 07MINOR20-year term locks franchisee into deteriorating brand with minimal support infrastructure
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 |
| Protected territory | Yes |
| Online sales rightsℹ | Granted |
| 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 | 95 |
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
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Toast, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast, Inc.
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Radisson Individuals · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
What do Radisson Individuals franchise owners earn?
Radisson Individuals 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 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 F-grade franchise with a risk score of 88 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.
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.