Bottom line
- Total investment $285K – $7.1M including a $25K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 233 loans (below the industry average).
- 16 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 Super 8 unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Super 8 franchisees operate economy-segment hotel properties, managing daily guest services, housekeeping, front desk operations, and property maintenance. Franchisees are responsible for generating room revenue (on which they pay 5.5% royalties to the franchisor), managing operating costs, capital expenditures, and compliance with brand standards across a 20-year license agreement.
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 · 14 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
Super 8 presents HIGH RISK due to declining unit economics, multiple active antitrust/fee disputes, zero financial transparency, and aggressive royalty structure on gross revenue during a period of system contraction.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-2.3% YoY) signals shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02HIGHMultiple active litigations including antitrust/price-fixing allegations (Benoit, Jantunen, Proulx) and fee calculation disputes (Janani) suggest systemic franchisor-franchisee conflicts and potential operational cost increases
- 03MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents independent ROI validation and suggests performance data may be weak or inconsistent across portfolio
- 04MEDHigh-end investment range ($7.1M+) combined with undisclosed profitability creates severe information asymmetry and liquidity risk
- 05HIGHResort fee and revenue management litigation (Luca, Extended Stay Antitrust cases) indicate regulatory/legal exposure that may impact pricing power and franchisee margins
- 06MINORFTC cybersecurity settlement demonstrates prior compliance failures and data security vulnerabilities that could expose franchisees to liability
- 07MINOR20-year term with 5.5% royalty on gross room revenue (not profit) locks franchisees into long-term fee obligation regardless of profitability
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
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Super 8 · FDD (2026) PDF