FranchiseVerdict
Radisson Individuals logo
FV-02092·AVOIDStandard76

Radisson Individuals

Lodging - Hotels & MotelsFranchising since 2023Website
Investment
$2.9M
49th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
6.0%
74th pct Hotels & Mote…
Units
1
13th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

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.
  • Rated AVOID with a risk score of 85/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
  • 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
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

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 Individuals unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
FDD reports $1.0M–$1.8M

Unlevered ROIC · per unit

2%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$83K
EBITDA margin
11.0%
Total invested
$4.3M
Payback
619 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
1963
FDD year
2024
States available
1

Item 7 · what it costs

The Vitals

Total investment
$2.9M
All-in to open one unit
Liquid capital
$1.0M – $1.8M
Cash you must have on hand
Franchise fee
$75K
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

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

Total units
1
Opened
0
Last reporting year
Closed
1
Turnover rate
100.0%
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
2022
1-1
Franchised units
2023
2
Franchised units
2024
1
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 14 states
Not registered

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.

Total loans
7
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

85
Risk · 0-100
AVOID85 / 100

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.

Score breakdown · what drove the 85 / 100 rating

  1. 01MINORSystem collapsed 50% YoY (1 unit remaining) — franchise is effectively defunct
  2. 02HIGHGoing concern warning indicates franchisor may be financially unstable and unable to support franchisees
  3. 03MINOR87 royalty collection actions in one year suggests widespread franchisee financial distress and franchisor desperation
  4. 04MINORMultiple pending class action lawsuits (destination marketing fees, anti-competitive practices) expose franchisees to liability and reputational risk
  5. 05MINORNo average revenue or net income disclosure (Item 19) prevents any meaningful financial due diligence
  6. 06MEDHigh 6% royalty rate on declining RevPAR environment with no disclosed unit economics
  7. 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

Protected territory
Yes
Initial term
20 years
Renewal term
0 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
95
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
Maryland

Item 11

Training & Operations

Classroom training
61 hrs
On-the-job training
16 hrs
POS system
Toast, Inc.
Operating tech stack

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

18 numbers

Locked
(212) 416-••••
NY
(916) 445-••••
CA
(808) 586-••••
HI

One-time purchase · CSV download · Validation questions included

FDD download

Radisson Individuals · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above