Shilo Inns Franchise Cost, Revenue & Review 2026
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 does not disclose total investment in its current FDD, including a $25K franchise fee and an ongoing 7.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2023 FDD issuance
Overview
- Investment
- $7.4M
- 36th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 64th 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 avg · 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 including a $25K franchise fee, 7.0% ongoing royalty.
- RETURNSNo Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- LEGAL13 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
Corporate structure & franchisor financials
- Legal entity
- Shilo Inns, Franchise, LLC
- Parent company
- Shilo Franchise International, LLC (affiliate)
- 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
- $23K
- vs $256K 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?
Source: FDD 2023 · Items 5–7
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $7.4M
- 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%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- -n/d
- 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 |
| Total fee load | 5.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Shilo Inns did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Shilo Inns unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
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
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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 average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Shilo Inns Compares
Is the system healthy?
Source: FDD 2023 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 18
- Opened
- 1
- 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
- 0.0%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
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.
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
- N/A
- limited sample (2 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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
Extensive creditor/foreclosure litigation history (12 matters) and multiple 2013 Chapter 11 bankruptcies of affiliated Shilo entities, though those were resolved by ~2015 and involved affiliates, not the franchisor. financial_distress=true and system is shrinking (-10% net growth, 18 units, 6 franchised). The old affiliate bankruptcies are lower weight, but the litigation volume and distress flag stack.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 33 / 100 verdict
- 01HIGH12 litigation matters (creditor/foreclosure history)
- 02MINORMultiple 2013 affiliate Chapter 11 bankruptcies (resolved ~2015)
- 03MINORfinancial_distress=true, net growth -10%
- 04MINORSmall/shrinking system: 18 units, 6 franchised
- 05MINORNo 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 | Radius/Geographic |
| Protected territory | Yes |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Oregon |
| Litigation count | 13 |
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and franchisor location
- 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
FDD download
Shilo Inns · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
What do Shilo Inns franchise owners earn?
Shilo Inns does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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. 1 new units were opened in the latest reporting year.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent Shilo Inns, you can request corrections or provide updated information.
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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.