F85/100FDD 2024
Radisson Individuals — Litigation & Risk
Lodging - Hotels & Motels · FDD Items 3, 4 & 5
Elevated Risk
95 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
95
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
- 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 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.