Ruby Hotels
Formerly known as Licensor
Bottom line
- Total investment $8.0M – $38.5M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 85/100.
- 46 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 Ruby Hotels unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Ruby Hotels franchisees operate upscale boutique hotel properties under the Ruby Hotels brand within IHG's portfolio. Day-to-day operations involve guest services, housekeeping, food & beverage management, revenue optimization, and adherence to brand standards while remitting 5% of gross rooms revenue to the franchisor.
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.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ruby Hotels presents extreme risk due to going concern status, zero operating units, extensive franchisor litigation, missing financial disclosures, and massive capital requirements without documented returns.
Score breakdown · what drove the 85 / 100 rating
- 01HIGHGoing Concern warning indicates potential financial viability crisis at franchisor level
- 02MEDZero disclosed operating units with unknown growth trajectory suggests system collapse or pre-launch stage
- 03HIGHExtensive litigation pattern across IHG brands including breach of contract, trademark disputes, and fee collection actions signals systemic franchisor-franchisee relationship problems
- 04MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation on $8-38M investment range
- 05MINORUnprotected territory creates direct competition risk with other franchisees in same market
- 06MEDHigh initial investment ($8M-$38M) combined with 5% royalty on undisclosed revenue creates severe cash flow uncertainty
- 07HIGHClass action litigation on data security and procurement suggests operational mismanagement and potential liability exposure for franchisees
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ruby Hotels · FDD (2026) PDF