Signature Inn Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $202K – $769K
- 9th pct Lodging
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 14
- 24th 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 $202K – $769K including a $20K franchise fee.
- RETURNSItem 19 reports a metric other than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- LEGAL19 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
- Sonesta RL Hotels Franchising Inc.
- Parent company
- Red Lion Hotels Corporation (RLHC)
- Ultimate parent
- Sonesta International Hotels Corporation / Sonesta Holdco Corporation
- 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
- $55.6M
- vs $54.0M prior year
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.
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
| Cost component | Low | High |
|---|---|---|
| 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
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $99 |
| Transfer fee | $20K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Signature Inn 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 Signature Inn unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
15%
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: 2026 FDD
Financial Performance
Item 19 reports a metric other than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Item 19 reports a metric other 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 averages
How Signature Inn Compares
Is the system healthy?
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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
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)
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
- N/A
- limited sample (3 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
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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.
Score breakdown · what drove the 45 / 100 verdict
- 01HIGH23 litigation matters, 6 pending 2025 suits
- 02MEDAffiliate Chapter 11 bankruptcy disclosed (not franchisor's own)
- 03MINORFinancial distress flagged; parent net loss -$7.69M (parent-level financials)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 5 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 19 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 17 hrs
- POS system
- ASI Cloud by Anand Systems
- Operating tech stack
Items 5 & 11
Franchisor Support
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?
Signature Inn 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 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), 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 Signature Inn, 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.