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F82/100FDD 2024

Radisson — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

92 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
92
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
82 / 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
4
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
Total loan volume
$20.0M
Avg loan size
$5.0M
Participating lenders
4

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 82/100 rating

Risk Score Breakdown

  1. 01MINORSevere unit contraction of -8.8% YoY indicates systemic franchisee distress and deteriorating brand health
  2. 02MINOR85 active collection lawsuits by franchisor suggest widespread franchisee inability to pay royalties, signaling profitability crisis
  3. 03HIGHMultiple litigations including class action on hidden marketing fees and antitrust/civil rights claims indicate predatory franchisor practices and broken franchisee relationships
  4. 04MINORNo Item 19 financial disclosure prevents validation of average unit economics and profitability claims
  5. 05MINORUnprotected territory creates internal competition and cannibalization risk across 58-unit system
  6. 06HIGHGoing Concern status = False indicates financial distress at corporate franchisor level
  7. 07MINORHigh initial investment ($10.0M+) paired with 6% royalty rate and declining unit base creates poor recovery probability

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.