Shilo Inns Franchise Cost, Revenue & Review 2026
- Investment
- $7.4M – $67.6M
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (2)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Shilo Inns is a hotel franchise operating midscale, full and limited-service properties. Franchisees own and operate the hotels, managing front desk, housekeeping, and revenue under brand standards.
FranchiseVerdict summary · 2026
A Shilo Inns franchise requires a total initial investment of $7.4M – $67.6M, including a $25K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $7.4M – $67.6M
- 36th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 65th pct Lodging
- Units
- 18
- 27th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $7.4M – $67.6M including a $25K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Shilo Inns, Franchise, LLC
- Parent company
- Shilo Franchise International, LLC (affiliate)
- FDD Item 1, page 6 of the 2023 FDD
- Predecessor
- Shilo Inns Suites Hotels Franchise, LLC
- Prior franchisor entity
- CEO title
- Founder/Manager
- Mark S. Hemstreet
- Incorporated in
- OR
- HQ
- 11707 NE Airport Way, Portland, Oregon 97220
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $256K
- vs $23K prior year
Overview
About
- CEO
- Mark S. Hemstreet
- Headquarters
- OR
- Founded
- 1974
- FDD year
- 2023
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 321% above the typical lodging franchise.
Source: FDD 2023 · Items 5–7
FDD Item 7 · 2023 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Equipment, build-out, other | $7.3M | $67.6M |
| Total initial investment | $7.4M | $67.6M |
Source: Shilo Inns 2023 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $7.4M – $67.6M
- Top 40% of category vs category
- Liquid capital req'd
- N/A
- Cash you must have on hand
- Franchise fee
- $25K
- Top 40% of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- No separate advertising fund fee disclosed; advertising c…
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Inventory (initial) | $300 – $1K |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Shilo Inns makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Shilo Inns unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy, other operating costs and working capital, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2023 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 5.0% — below the Lodging median of 8.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Shilo Inns Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 8 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
21 current owners across 8 states.
- OR 12
- ID 3
- AZ 1
- CA 1
- MT 1
- NV 1
- TX 1
- WA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $5.9M
- Median loan
- $2.9M
- average
- Charge-off rate
- Under 10 loans (2)
- Insufficient SBA coverage: 2 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (2)
- 5-yr charge-off
- Under 10 loans (2)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Extensive history of creditor/lender litigation (bank defaults, foreclosures, judgments) against Mark Hemstreet, Shilo Management Corporation, and various Shilo Company Entities arising from real estate/commercial loan defaults during the 2008 downturn and COVID-19. Most cases settled or dismissed via property sale or negotiated settlement; one case (Cathay Bank) is ongoing as of the FDD date.
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
Shilo Inn, Newberg, LLC 501 Sitka Avenue, Newberg, OR, 97132 11600 SW Shilo Lane, Portland, OR, 97225 5/1/2013 Plan filed 6/5/2015 Property Sold to Third Party and matter dismissed as a result of settlement In re. Shilo Inn, Newberg, LLC; United States Bankruptcy Court, Central District of California – Los Angeles Division 2:13-bk- 21605 ... Shilo Inn, Boise Airport, LLC 4111 Broadway Avenue, Boise, ID, 83705 11600 SW Shilo Lane, Portland, OR, 97225 5/1/2013 Plan Filed 6/5/2015 Dismissed by Settlement In re. Shilo Inn, Boise Airport, LLC; United States Bankruptcy Court, Central District of California – Los Angeles Division 2:13-bk- 21603 ... Shilo Inn, Seaside East, LLC 900 S Holladay, Seaside, OR, 97138 11600 SW Shilo Lane, Portland, OR, 97225 5/1/2013 Plan Filed 6/5/2015 Dismissed by Settlement In re: Shilo Inn, Seaside East, LLC; United States Bankruptcy Court, Central District of California – Los Angeles Division 2:13-bk- 21606 ... Shilo Inn, Casper, LLC 739 Luker Lane, Evansville, WY, 82636 7/24/2013 5/8/2014 4/23/2014 Property Sold to Third Party and matter dismissed as a result of settlement In re: Shilo Inn, Casper, LLC; United States Bankruptcy Court for the District of ...
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 33 / 100 verdict
- 01HIGH12 litigation matters (creditor/foreclosure history)
- 02MINORMultiple 2013 affiliate Chapter 11 bankruptcies (resolved ~2015)
- 03MINORSmall/shrinking system: 18 units, 6 franchised
- 04MINORNo going-concern note
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2023 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 20,000 to 60,000 persons |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Oregon |
| Litigation count | 13 |
View Item 3 litigation summary
Extensive history of creditor/lender litigation (bank defaults, foreclosures, judgments) against Mark Hemstreet, Shilo Management Corporation, and various Shilo Company Entities arising from real estate/commercial loan defaults during the 2008 downturn and COVID-19. Most cases settled or dismissed via property sale or negotiated settlement; one case (Cathay Bank) is ongoing as of the FDD date.
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and franchisor location
- Ongoing training
- Required
- Site selection
- franchisee (franchisor approves but does not locate or negotiate site)
- Franchisor financing
- Not offered
- Item 10
- POS system
- SkyTouch Hotel Property Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SkyTouch Hotel Property Management System
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Shilo Inns franchise?
The total investment to open a Shilo Inns franchise ranges from $7.4M – $67.6M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Shilo Inns franchise owners earn?
Shilo Inns makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Shilo Inns?
Shilo Inns is franchised by Shilo Inns, Franchise, LLC. Its parent company is Shilo Franchise International, LLC (affiliate). Source: FDD Item 1, 2023 filing.
What is Item 19 in the Shilo Inns FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Shilo Inns FDD and qualifies whose outlets they describe.
What is Shilo Inns's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Shilo Inns (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Shilo Inns franchise locations are there?
As of their most recent FDD filing, Shilo Inns has 18 total units in the United States, including 6 franchised units and 12 company-owned units.
Is Shilo Inns a good franchise to buy?
FranchiseVerdict rates Shilo Inns as a D-grade franchise with a verdict score of 33 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.