Bottom line
- Total investment $238K – $24.6M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 451 loans (below the industry average).
- 11 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
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 Ramada unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Ramada franchisees operate mid-scale hotel properties under the Ramada brand, managing daily operations including guest services, housekeeping, maintenance, and revenue management. Franchisees pay 5% royalty on gross room revenues plus franchise fees, and must comply with brand standards while competing in a consolidating hotel market where the system has shrunk 6.4% in the past year.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ramada presents HIGH RISK due to shrinking franchise system, undisclosed profitability metrics, ongoing litigation including price-fixing allegations, and concerning parent company financial status.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-6.4% YoY) indicates system contraction and potential franchisee struggles
- 02MEDNo average revenue or net income disclosed (missing Item 19) prevents assessment of actual profitability and ROI
- 03HIGHMultiple litigation disclosures including price-fixing allegations, class actions on destination marketing fees, and breach of contract cases suggest systemic disputes
- 04MINORWide investment range ($237K–$24.5M) creates uncertainty about actual capital requirements and suggests highly variable unit economics
- 05HIGHGoing Concern status is FALSE, raising questions about parent company financial stability and long-term support
- 06MINOR5% royalty on gross room revenue (not net) compounds burden during low-occupancy periods and economic downturns
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
97 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ramada · FDD (2026) PDF