Signature InnFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Signature Inn franchise requires a total initial investment of $245K – $6.4M, including a $20K franchise fee. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $245K – $6.4M
- 14th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- N/A
- Units
- 6
- 16th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
19 legal cases disclosed in the FDD. Read Item 3 before signing.
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.
- Verdict D (Below Average) with a risk score of 72/100.
- 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
- Legal entity
- Sonesta RL Hotels Franchising Inc.
- Parent company
- Red Lion Hotels Corporation
- Incorporated in
- WA
- HQ
- 400 Centre Street, Newton, Massachusetts 02458
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $55.6M
- vs $54.0M prior year
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.
- CEO
- John Murray
- Headquarters
- MA
- Founded
- 1986
- FDD year
- 2024
- States available
- 3
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $30K | $90K |
| Equipment, build-out, other | $195K | $6.3M |
| Total initial investment | $245K | $6.4M |
Source: Signature Inn 2024 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
- $245K – $6.4M
- Better than avg vs category
- Liquid capital req'd
- $30K – $90K
- Better than avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- $51 per Guest Room, per month
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $99 |
| Transfer fee | $20K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Signature Inn Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
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
- 0.0%
- rates vary by category · see methodology
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Signature Inn's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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
| 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
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Signature Inn · FDD (2024) PDF
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 $245K – $6.4M, 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 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 6 total units in the United States, including 3 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is Signature Inn a good franchise to buy?
FranchiseVerdict rates Signature Inn as a D-grade franchise with a risk score of 72 out of 100, 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.
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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.