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D77/100FDD 2026

Ramada — Litigation & Risk

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

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Elevated Risk

11 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
11
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
77 / 100
FranchiseVerdict composite
Rating
CAUTION
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
633
Government-backed loans issued
Default rate
17.2%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
79 loans
Loans charged off or defaulted
Total loan volume
$916.0M
Avg loan size
$1.4M
Participating lenders
129

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 77/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-6.4% YoY) indicates system contraction and potential franchisee struggles
  2. 02MEDNo average revenue or net income disclosed (missing Item 19) prevents assessment of actual profitability and ROI
  3. 03HIGHMultiple litigation disclosures including price-fixing allegations, class actions on destination marketing fees, and breach of contract cases suggest systemic disputes
  4. 04MINORWide investment range ($237K–$24.5M) creates uncertainty about actual capital requirements and suggests highly variable unit economics
  5. 05HIGHGoing Concern status is FALSE, raising questions about parent company financial stability and long-term support
  6. 06MINOR5% royalty on gross room revenue (not net) compounds burden during low-occupancy periods and economic downturns

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.