Signature Inn
Formerly known as Senior Living Home Franchise
Bottom line
- Total investment $245K – $6.4M including a $20K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 19 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 Signature Inn unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Franchisees operate limited-service hotel properties under the Signature Inn brand, managing front desk, housekeeping, maintenance, and guest services. Day-to-day work involves occupancy management, revenue optimization, staff scheduling, and brand compliance. Franchisees retain revenue minus operating costs (labor, utilities, supplies), then pay the franchisor a fixed $51/month per guest room in royalties, plus initial $20K franchise fee.
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 · 15 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
Signature Inn presents HIGH RISK due to going concern ambiguity, active multi-party litigation, zero financial disclosure, an extremely small 6-unit system, and a franchisor in post-merger turmoil with questionable long-term viability.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern Warning: False status indicates potential financial instability or uncertainty about franchisor's ability to continue operations
- 02HIGHSubstantial Litigation Exposure: Active stockholder litigation (Special Situations Fund III), post-merger disputes with Sonesta, tortious interference claims from Radisson competitor, and multiple breach/non-payment suits against franchisees suggest operational and legal turmoil
- 03MINORNo Financial Transparency: Franchisor refuses to disclose average unit revenue or net income—impossible to assess ROI or validate the $20K franchise fee claim
- 04MINORPer-Room Royalty Model is Unusual and Risky: $51/month per guest room (not percentage-based) means royalties don't scale with inflation or revenue growth; unclear if this covers all fees or if additional charges exist
- 05MINORExtremely Wide Investment Range: $244K–$6.4M spread (26x variance) suggests inconsistent unit economics or hidden costs; franchisees cannot model realistic capex
- 06MINORMinimal Unit Growth with Small Base: Only 6 units with 50% YoY growth (3 units added) indicates an extremely small, unproven franchise system still in startup/validation phase
- 07MINORNo Territory Protection: Franchisor can place competing units adjacent to franchisee locations, cannibalizing revenue and creating internal conflict
- 08MEDMerger Integration Risk: 2021 Sonesta merger appears incomplete with ongoing disputes; unclear if Signature Inn brand will survive consolidation or be folded into Sonesta banners
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
25 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Signature Inn · FDD (2024) PDF