Bottom line
- Total investment $7.4M 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 CAUTION with a risk score of 77/100.
- 13 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 Shilo Inns unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Shilo Inns franchisees operate mid-range hotel properties, managing daily operations including front desk, housekeeping, maintenance, and guest services. Franchisees pay 5-7% royalties on gross rooms revenue to the franchisor while maintaining their own staffing, marketing, and operational standards within the brand system.
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 · 14 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
A financially distressed franchisor with 18 units, $7.36M+ investment requirement, no disclosed financials, going concern warning, and 13 litigations represents extreme franchisee risk.
Score breakdown · what drove the 77 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may lack financial stability to support franchisees
- 02HIGHThirteen disclosed litigations including defaults, commercial loan foreclosures, and pandemic-related failures indicate systemic financial distress
- 03MEDExtremely high initial investment ($7.36M+) with no disclosed average revenue or net income — impossible to validate ROI
- 04MINOROnly 18 total units with unknown growth trajectory suggests stagnant or shrinking system
- 05MINORNo Item 19 financial performance representations — franchisor unwilling or unable to disclose unit economics
- 06MINORFounder/entity foreclosures post-2008 and COVID-19 suggest poor crisis management and resilience
- 07MED5-7% royalty on undisclosed gross rooms revenue creates uncertainty about actual ongoing costs
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
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Shilo Inns · FDD (2023) PDF