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Signature Inn Franchise Cost, Revenue & Review 2026

LodgingMAFranchising since 2017
CAverageAverage45/100Editorial grade from public filings; not investment advice.
Investment
$202K – $769K
Disclosed sales
partial, no system average
SBA charge-off
Under 10 loans (3)

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02318FDD 2026Data QualityStandard62%
Manager-run OKNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Signature Inn is a limited-service hotel franchise offering value-priced rooms for travelers. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue under brand standards.

FranchiseVerdict summary · 2026

A Signature Inn franchise requires a total initial investment of $202K – $769K, including a $20K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (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: low - issued within the last 12 months

Evidence: partial✓ 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 3 headline figures on this page cite a page of the filing.

Overview

Investment
$202K – $769K
10th pct Lodging
Avg gross sales
N/A
Projection
Royalty
Not extracted
Units
14
24th pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$202K – $769K
Median $8.9M
below median ↓, better than category
Franchise Fee
$20K – $20K
Median $50K
below median ↓, better than category
Liquid Capital Req'd
$30K – $90K
Median $312K
below median ↓, better than category
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
Not extracted
Median 5.0%
Ongoing Fees
Not extracted
Median 8.5%
SBA Charge-Off Rate
Under 10 loans (3)
Insufficient SBA coverage: 3 loans, rate hidden below 10
System Size
14 units
Median 60 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.7%
below median ↓, better than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
22 cases
Review carefully

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 $202K – $769K including a $20K franchise fee.
  • RETURNSItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
  • RISKVerdict C (Average), verdict score 45/100 (higher is better).
  • GROWTHPositive: net +3 franchised outlets in the latest year (3 opened, 0 closed); 4 signed but not yet open (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
Sonesta RL Hotels Franchising Inc.
Parent company
Red Lion Hotels Corporation (RLHC)
FDD Item 1, page 8 of the 2026 FDD
Ultimate parent
Sonesta International Hotels Corporation / Sonesta Holdco Corporation
FDD Item 1, page 9 of the 2026 FDD
Predecessor
Vance Hotels, Inc. (later Red Lion Hotels Franchising, Inc.)
Prior franchisor entity
Incorporated in
Washington
HQ
400 Centre Street, Newton, Massachusetts 02458
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$58.5M
vs $51.1M prior year

Same owner · FDD Item 1, page 9

6 other brands on this site name Sonesta International Hotels Corporation / Sonesta Holdco Corporation as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
John Murray
Headquarters
MA
Founded
1986
FDD year
2026
States available
3

Can you afford it, and what does the money buy?

Entry cost runs 95% below the typical lodging franchise.

Total investment (Item 7)$202K – $769KCited, not corroborated — printed on page 35 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$20,000Verified — printed on page 24 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
RoyaltyNot extracted
Ad fundNot extracted
Working capital$30K – $90K

Source: FDD 2026 · Items 5–7

published investment is a conversion of an existing hotel into a 40-room property. The same filing prices new construction separately at $4,607,459-$7,129,164.

FDD Item 7 · 2026 filing

Initial investment breakdown

Signature Inn: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$20K$20K
Working capital (3–6 mo)$30K$90K
Equipment, build-out, other$152K$659K
Total initial investment$202K$769K

Source: Signature Inn 2026 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
$202K – $769K
Top 40% of category vs category
Liquid capital req'd
$30K – $90K
Top 40% of category vs category
Franchise fee
$20K – $20K
Top 40% of category vs category
Royalty
$42 per Guest Room per month, subject to a minimum monthl…
Ad fund
Brand Promotion Fee: $18 per Guest Room per month, minimu…

Ongoing fees · Item 6

Signature Inn: Item 6 recurring fees
FeeAmount
Royalty (flat)$42 per Guest Room per month, with a minimum monthly Royalty of $2,520 regardless of room count; subject to annual Fee Adjustment (greater of 10% compounding or CPI change)
Technology fee$99
Transfer fee$20K
Inventory (initial)$20K – $123K

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typeNot extracted
Sample size9

Source: FDD 2026 · Item 19

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

No Item 19 revenue figure for Signature Inn is on file. 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 Signature Inn unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundnot set
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

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.

Total invested capital · what you put in to openFDD
FDD Item 7: $202K–$769K (midpoint used)
FDD reports $30K–$90K

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, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$545K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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: 2026 FDD

Financial Performance

An occupancy metric, not unit revenue

Sample size
9
vs category median 98 · small
Reporting year
2025
Fiscal year the figures cover
Source filing
FDD 2026
Disclosed in the 2026 filing, covering 2025
Gross sales rank
No comparison data
Investment cost rank10th
Lower investment ranks lower (better)
Royalty rate rank
No comparison data
Unit count rank24th
vs Lodging peers
Risk score rank75th
Lower risk = lower percentile (better)

Compared against 175 Lodging brands

Showing the headline figures — all 134 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Disclosure

Item 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.

Operator retention

System expanding at 100.0% CAGR over 3 years across 14 units — operators are staying and new ones are joining.

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 Signature Inn Compares

Metric
Signature Inn
Category median
vs median
Investment
$485K
$8.9Mmiddle half $1.2M–$18.3M · n=96
Below median, better than category
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
14
60middle half 6–245 · n=126
Below median, worse than category

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?

Total units14Verified — printed on page 66 of the 2026 FDD (Item 20), and the table's own arithmetic closes on it three ways.
3-yr growth+100.0% (favorable vs category)

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
14
Opened
3
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
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
+100.0%
Net unit change over 3 years
3-yr CAGR
+100.0%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
4
0.29 per open outlet · Item 20 Table 5
Projected new
10
Franchisor's next-year forecast
2023
7
Franchised units
2024
11+4
Franchised units
2025
14+3
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 3 states reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

3

states with franchisees (per FDD Item 12)

Growth insight

Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.

Total loans
3
Loan volume
$7.1M
Median loan
$2.2M
50th percentile
Charge-off rate
Under 10 loans (3)
Insufficient SBA coverage: 3 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 (3)
5-yr charge-off
Under 10 loans (3)
Loans approved 2021+
Active lenders
2
Defaults
N/A

Explore lender portfolios on Bank Reports or regional data on State Reports.

Total loans
1
Loan volume
$3.3M
Charge-off rate
N/A
Jobs created
2

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

What could kill this investment?

SBA charge-offUnder 10 loans (3)
Verdict score45/100 (higher is better)
Litigation22 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage45Verdict score 45/100

23 litigation matters (mostly concluded merger/commercial disputes, but 6 pending 2025 suits against former franchisees), a parent-level Chapter 11 bankruptcy disclosed (Office Properties Income Trust, not SRLHF's own), and financial distress flagged with parent net loss of -$7.69M. Financials are parent-level so brand equity is not directly judged, and the disclosed bankruptcy is affiliate not franchisor.

Moderate confidence±13 pts
3258

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Mix of concluded merger-related stockholder suits (all dismissed/settled, $240K paid), concluded commercial disputes (Radisson tortious interference $500K settlement; guarantor/franchisee collection suits, several settled $80K-$500K), and 6 pending 2025 suits filed by SRLHF against former franchisees/guarantors to collect unpaid amounts and liquidated damages.

Largest disclosed settlement: $500,000

Bankruptcy (Item 4)

Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)

In re: Office Properties Income Trust, et al., Bankruptcy Petition 25-90530 (U.S. Bankruptcy Court of Texas, Houston), filed October 30, 2025 - entities for which certain SRLHF officers/directors have management responsibility filed Chapter 11; this is not SRLHF's own bankruptcy

Audited financials (Item 21)

Yes · Deloitte & Touche LLP

Franchisor revenue (Item 21)

Yr 1: $58.5MYr 2: $51.1MNon-royalty: $5.5M

Franchisor entity revenue (not unit-level)

SRLHF-level: 2025 total fee revenue disclosed elsewhere in Item 8 as $55,755,149 (all Network Brands); RLHC consolidated total revenues shown in Item 21 financials: $58,487,000 (2025), $51,051,000 (2024), $55,566,000 (2023)

ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: No
  • Kickbacks from required suppliers: Yes
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 45 / 100 verdict

  1. 01HIGH23 litigation matters, 6 pending 2025 suits
  2. 02MEDAffiliate Chapter 11 bankruptcy disclosed (not franchisor's own)
  3. 03MINORFinancial distress flagged; parent net loss -$7.69M (parent-level financials)

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 134 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail22 matters · Item 3

Litigation cases

The franchisor

Concluded (7)

  • Red Lion Hotels Franchising, Inc. v. Minnesota Hospitality, Inc.

    settled

    Brought against a franchisee · filed 2019-02-22 · U.S. District Court for the Eastern District of Washington · 2:19-cv-00061

    “Red Lion Hotels Franchising, Inc. v. Minnesota Hospitality, Inc., Case No. 2:19-cv-00061 (U.S. District Court for the Eastern District of Washington). On February 22, 2019, SRLHF filed a lawsuit against defendant, the guarantor of a former franchisee, for breach of its guarantee as a result of defendant’s failure to ensure the former franchisee’s performance under the franchise license agreement,”Page 20 of the 2026 FDD, Item 3

    Outcome:“SRLHF $150,000 and execute a confession of judgment. On October 22, 2019, the court granted the parties’ stipulated motion to dismiss.” (page 21)

  • Red Lion Hotels Franchising, Inc. v. Remo Polselli

    dismissed

    Brought against a franchisee · filed 2019-03-14 · U.S. District Court for the Eastern District of Washington · 2:19-cv-00082

    “Red Lion Hotels Franchising, Inc. v. Remo Polselli, Case No. 2:19-cv-00082 (U.S. District Court for the Eastern District of Washington). On March 14, 2019, SRLHF filed a lawsuit against defendant, the guarantor of a former franchisee, for breach of its guarantee as a result of defendant's failure to ensure the former franchisee's performance under the franchise license agreement, including”Page 19 of the 2026 FDD, Item 3

    Outcome:“On October 9, 2020, the court granted the parties’ stipulated motion and entered an Order of Dismissal without Prejudice, dismissing all of the parties’ claims without prejudice.”

  • Linger Chu and His-Hsieh Chu v. Jim Tang, Red Lion Hotels Franchising, Inc. and Does 1-100

    settled

    Brought by a franchisee · filed 2018-06-28 · Superior Court of the State of California, County of Los Angeles · BC712103

    “Linger Chu and His-Hsieh Chu v. Jim Tang, Red Lion Hotels Franchising, Inc. and Does 1-100, Case No. BC712103 (Superior Court of the State of California, County of Los Angeles). On June 28, 2018, plaintiffs filed a lawsuit against SRLHF and third parties for intentional misrepresentation, negligent misrepresentation, and declaratory relief resulting from plaintiffs’ sale of their Red Lion-branded”Page 19 of the 2026 FDD, Item 3

    Outcome:“On March 28, 2019, the plaintiffs and SRLHF entered into a Settlement and Release Agreement in which the plaintiffs and SRLHF agreed to mutually release one another from all claims and the plaintiffs agreed to pay SRLHF $250,000 and execute a confession of judgment.”

  • Radisson Hotels International, Inc. v. Red Lion Hotels Corporation d/b/a RLH Corporation, and Red Lion Hotels Franchising, Inc.

    settled

    Third-party plaintiff · filed 2018-09-26 · U.S. District Court for the Eastern District of Washington · 2:18-cv-00303

    “Radisson Hotels International, Inc. v. Red Lion Hotels Corporation d/b/a RLH Corporation, and Red Lion Hotels Franchising, Inc., Case No. 2:18-cv-00303 (U.S. District Court for the Eastern District of Washington). On September 26, 2018, plaintiff, which is a competitor of RLHC and SRLHF, filed a lawsuit against RLHC and SRLHF for tortious interference with franchise license agreements and a”Page 19 of the 2026 FDD, Item 3

    Outcome:“On August 25, 2021, plaintiff, RLHC and SRLHF entered into a Settlement Agreement and Release in which plaintiff, on the one hand, and RLHC and SRLHF, on the other hand, agreed to mutually release one another from all claims, and, without admitting any liability, RLHC and SRLHF agreed to pay plaintiff $500,000. On September 2, 2021, the court granted the parties’ Stipulated Motion for Dismissal,”

  • Red Lion Hotels Franchising, Inc. v. Ghazanfar Khan, et al.

    settled

    Brought against a franchisee · filed 2017-03-13 · U.S. District Court for the Eastern District of Washington · 2:17-cv-00094; 2:17-cv-00155

    “Red Lion Hotels Franchising, Inc. v. Ghazanfar Khan, et al., Case No. 2:17-cv-00094, Case No. 2:17-cv-00155 (U.S. District Court for the Eastern District of Washington). On March 13, 2017, SRLHF filed a lawsuit against two former franchisees and their guarantors for trademark infringement, false designation of origin and breach of contract as a result of their failure to comply with their”Page 20 of the 2026 FDD, Item 3

    Outcome:“On December 28, 2018, the parties entered into a Confidential Settlement and Mutual Release Agreement in which the parties agreed to mutually release each other from all claims, defendants paid to SRLHF $500,000, and defendants agreed to immediately cease all use of our proprietary service marks and trademarks.”

  • Red Lion Hotels Franchising, Inc. v. JS Three Star Investment Inc.

    settled

    Brought against a franchisee · filed 2016 · District Court of the 422nd Judicial District, Kaufman County, Texas · 96777-422

    “Red Lion Hotels Franchising, Inc. v. JS Three Star Investment Inc., Case No. 96777-422 (District Court of the 422nd Judicial District, Kaufman County, Texas). In December 2016, SRLHF filed a lawsuit against a former franchisee for failure to pay its account, unjust enrichment and breach of contract as a result of its failure to pay amounts due under the membership agreement. On March 8, 2017,”Page 21 of the 2026 FDD, Item 3

    Outcome:“On December 11, 2017, the parties entered into a confidential settlement agreement in which the parties agreed to mutually release each other from all claims. On January 18, 2018, the court dismissed the case with prejudice.”

  • Red Lion Hotels Franchising, Inc. v. Kumar and Sadikila Vemulapalli

    settled

    Brought against a franchisee · filed 2016-05-12 · Superior Court of Washington, County of Spokane · 16-2-01814-3

    “Red Lion Hotels Franchising, Inc. v. Kumar and Sadikila Vemulapalli, Case No. 16-2- 01814-3 (Superior Court of Washington, County of Spokane). On May 12, 2016, SRLHF filed a complaint against guarantors of a former franchisee seeking to enforce their personal guaranty of a franchise agreement. On December 15, 2017, defendants filed an answer, affirmative defenses and counterclaims for breach of”Page 20 of the 2026 FDD, Item 3

    Outcome:“On December 18, 2018, the parties entered into a Settlement and Release Agreement in which the parties agreed to mutually release each other from all claims and defendants agreed to pay SRLHF $80,000. On June 13, 2019, the court dismissed all claims with prejudice.”

Status not stated in the filing (6)

  • Sonesta RL Hotels Franchising Inc. v. Bliss Investment LLC and Dr. Chandrakant Shah

    Brought against a franchisee · filed 2025-01-15 · United States District Court for the District of Massachusetts · 1:25-cv-10112-PGL

    “Suits Against Former Franchisees/Guarantors to Collect Unpaid Amounts and Liquidated Damages: Sonesta RL Hotels Franchising Inc. v. Bliss Investment LLC and Dr. Chandrakant Shah, Civil Action No. 1:25-cv-10112-PGL, Filed January 15, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Gonzales WS Hospitality LLC and Sal Bhatty

    Brought against a franchisee · filed 2025-07-11 · United States District Court for the District of Massachusetts · 1:25-cv-11973-ADB

    “Sonesta RL Hotels Franchising Inc. v. Gonzales WS Hospitality LLC and Sal Bhatty, Civil Action No. 1:25-cv-11973-ADB, Filed July 11, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Grain Valley Hospitality, LLC and Riteshkumar Patel

    Brought against a franchisee · filed 2025-12-31 · United States District Court for the District of Colorado · 1:25-cv-04233

    “Sonesta RL Hotels Franchising Inc. v. Grain Valley Hospitality, LLC and Riteshkumar Patel, Civil Action No. 1:25-cv-04233, Filed December 31, 2025 (United States District Court for the District of Colorado)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. MSDS MGT, Inc., Mohkam Sing Bath, and Harjinder Sharma

    Brought against a franchisee · filed 2025-05-20 · United States District Court for the District of Massachusetts · 1:25-cv-11428

    “Sonesta RL Hotels Franchising Inc. v. MSDS MGT, Inc., Mohkam Sing Bath, and Harjinder Sharma, Civil Action No. 1:25-cv-11428, Filed May 20, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Pardeshi LLC

    Brought against a franchisee · filed 2025-10-24 · United States District Court for the District of Massachusetts · 1:25-cv-13137

    “Sonesta RL Hotels Franchising Inc. v. Pardeshi LLC, Civil Action No. 1:25-cv-13137, Filed October 24, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. SIGMM LLC, Mark Gregson, and Peggy Gregson

    Brought against a franchisee · filed 2025-04-15 · United States District Court for the District of Massachusetts · 1:25-cv-10954-AK

    “Sonesta RL Hotels Franchising Inc. v. SIGMM LLC, Mark Gregson, and Peggy Gregson, Civil Action No. 1:25-cv-10954-AK, Filed April 15, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3

Parent, affiliates and predecessor

Concluded (2)

  • Van Cleave v. Red Lion Hotels Corporation, et al.

    dismissed

    Third-party plaintiff · Red Lion Hotels Corporation (RLHC) and members of the RLHC board of directors · filed 2021-02-09 · U.S. District Court for the District of Delaware · 1:21-cv-00177

    “Eight lawsuits were filed by purported RLHC stockholders in United States District Courts in connection with the merger (the “Merger”) of RLHC with and into a wholly owned subsidiary of Sonesta: Van Cleave v. Red Lion Hotels Corporation, et al., Case No. 1:21-cv-00177, Filed February 9, 2021 (U.S. District Court for the District of Delaware)”Page 18 of the 2026 FDD, Item 3

    Outcome:“As of March 31, 2021, the plaintiffs in each of these eight lawsuits voluntarily dismissed their respective claims, and on September 8, 2021, the parties entered into an agreement that provided for a mutual release of claims and for RLHC to pay the plaintiffs’ attorneys an aggregate amount of $240,000 in fees.” (page 19)

  • Red Lion Hotels Corporation v. Tiya Hospitality, LLC

    settled

    Brought against a franchisee · Red Lion Hotels Corporation (RLHC) · filed 2017 · Circuit Court of Jefferson County, Alabama · CV-2017-902126.00

    “Red Lion Hotels Corporation v. Tiya Hospitality, LLC, Case No. CV-2017-902126.00 (Circuit Court of Jefferson County, Alabama). In May 2017, RLHC filed a lawsuit against a former brand member for failure to pay amounts due and breach of contract for failure to pay amounts due. On July 3, 2017, defendant filed an answer and counterclaim, alleging that RLHC breached the membership agreement, and”Page 21 of the 2026 FDD, Item 3

    Outcome:“The parties entered into a Confidential Mutual Release and Settlement Agreement on February 19, 2018, under which defendant paid to RLHC $10,500 and the parties agreed to mutually release each other from all claims. On August 9, 2018, the court entered an Order of Dismissal.”

This list shows 15 of the 22 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Initial term20 yrs
Renewal termNot extracted
TerritoryNone (caution)
Initial training17 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Allowed renewalsℹ0
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Right of first refusalℹNo
Transfer requires consentYes
Termination notice5 days
Mandatory arbitrationNo
Jury trial waiverYes
Governing lawMassachusetts
Litigation count22
View Item 3 litigation summary

Mix of concluded merger-related stockholder suits (all dismissed/settled, $240K paid), concluded commercial disputes (Radisson tortious interference $500K settlement; guarantor/franchisee collection suits, several settled $80K-$500K), and 6 pending 2025 suits filed by SRLHF against former franchisees/guarantors to collect unpaid amounts and liquidated damages.

Items 10, 11

Training & Operations

Classroom training
0 hrs
On-the-job training
17 hrs
Ongoing training
Required
Site selection
franchisee
Franchisor financing
Offered
Item 10
POS system
ASI Cloud by Anand Systems
Operating tech stack

Items 5 & 11

Franchisor Support

✗Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: ASI Cloud by Anand Systems

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Signature Inn franchise?

The total investment to open a Signature Inn franchise ranges from $202K – $769K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Signature Inn franchise owners earn?

Item 19 of the Signature Inn FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns Signature Inn?

Signature Inn is franchised by Sonesta RL Hotels Franchising Inc.. Its parent company is Red Lion Hotels Corporation (RLHC). The ultimate parent named in the FDD is Sonesta International Hotels Corporation / Sonesta Holdco Corporation. Source: FDD Item 1, 2026 filing.

What is Item 19 in the Signature Inn 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 Signature Inn FDD and qualifies whose outlets they describe.

What is Signature Inn's franchise failure rate?

SBA 7(a) loan charge-off data is not available for Signature Inn (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 Signature Inn franchise locations are there?

As of their most recent FDD filing, Signature Inn has 14 total units in the United States, including 14 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.

Is Signature Inn a good franchise to buy?

FranchiseVerdict rates Signature Inn as a C-grade franchise with a verdict score of 45 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.

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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.