Bottom line
- Total investment $109K – $702K including a $25K 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 63/100. SBA loan default rate of 0.0% across 299 loans (below the industry average).
- 98 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 RODEWAY INN unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Overview
About
Franchisees operate budget-hotel properties under the Rodeway Inn brand, managing day-to-day operations including housekeeping, front desk, maintenance, and guest services. Primary revenue comes from nightly room rates, with franchisees responsible for local marketing, staffing, and compliance with brand standards while paying the franchisor 5% of gross room revenues monthly.
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 · 16 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
Rodeway Inn exhibits high-risk characteristics including system contraction, material litigation against the franchisor, missing financial disclosures, and unprotected territories—suggesting operational instability and unfavorable unit economics.
Score breakdown · what drove the 63 / 100 rating
- 01MINORDeclining unit count (-3.4% YoY) indicates system contraction and weakening franchisee profitability
- 02HIGHMultiple pending civil litigation alleging regulatory violations and discrimination suggests operational/compliance issues at corporate level
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests franchisor may be hiding poor unit economics
- 04MINORUnprotected territory creates direct competition risk; franchisees can cannibalize each other's revenue
- 05HIGHLitigation includes collection actions against former franchisees, indicating cash flow distress among operators
- 06MINOR5% royalty on GRR is reasonable but unsustainable if average unit volumes are below break-even threshold
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
79 numbers
One-time purchase · CSV download · Validation questions included
FDD download
RODEWAY INN · FDD (2026) PDF