Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns
Formerly known as Hospitality International
Bottom line
- Total investment $134K – $2.6M including a $10K franchise fee.
- 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 29 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Overview
About
Franchisees operate budget-segment hotel properties under one of five brand names, managing daily operations including front-desk staff, housekeeping, maintenance, and guest services. Revenue comes from room rentals at economy price points; franchisees pay a $25 per-room monthly royalty regardless of occupancy rate, creating fixed overhead pressure.
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 · 22 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
This is a declining budget hotel franchise system with shrinking unit count, missing financial disclosure, aggressive litigation history, and high operational leverage that creates significant franchisee default risk.
Score breakdown · what drove the 63 / 100 rating
- 01MINORDeclining unit count (203 units, -0.5% YoY) indicates shrinking franchise system with negative momentum
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents financial viability assessment and suggests weak unit economics
- 03MINORHigh royalty-to-investment ratio ($25/room on $134K-$2.6M investment) creates ongoing cash drain with unclear ROI
- 04HIGHSeven franchisor-initiated litigations for trademark infringement and past-due fees signal enforcement issues and franchisee financial distress
- 05MINORUnprotected territory creates direct competition risk from other franchisees within same brand portfolio
- 06MINORLow franchise fee ($10K) relative to total investment suggests high-leverage, asset-heavy model vulnerable to debt stress
- 07MINORFive-year term is short, limiting franchisee ability to recover investment and refinance debt
- 08MINORMultiple distinct brand names (Scottish Inns, Red Carpet Inn, Master Hosts, Passport Inn, Downtowner) may indicate fragmented legacy system or brand portfolio confusion
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
27 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns · FDD (2024) PDF