Tempo by HiltonFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Tempo by Hilton franchise does not disclose total investment in its current FDD, including a $100K franchise fee and an ongoing 5.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $20.3M
- 50th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 0
- 0th pct Lodging
- SBA default
- N/A
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
Bottom line
- Total investment $20.3M including a $100K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 67/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hilton Franchise Holding LLC
- Parent company
- Hilton Domestic Operating Company Inc.
- Ultimate parent
- Hilton Worldwide Holdings Inc.
- CEO title
- Chief Executive Officer and President
- Christopher J. Nassetta
- Incorporated in
- DE
- HQ
- 7930 Jones Branch Drive, Suite 1100, McLean, Virginia 22102
- Auditor
- Cherry Bekaert LLP
- Audited financials
- Franchisor revenue
- $1.2B
- vs $883.3M prior year
Overview
About
Franchisees would develop and operate mid-scale hotel properties under the Tempo by Hilton brand, managing daily operations including housekeeping, front desk, maintenance, and guest services while paying 5% royalties on room revenue. The business model relies on brand recognition and Hilton's distribution systems, but with zero existing franchisee locations, operational benchmarks and performance standards are unvalidated.
- CEO
- Christopher J. Nassetta
- Headquarters
- VA
- Founded
- 2007
- FDD year
- 2023
- States available
- 0
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $20.3M
- Near category avg vs category
- Liquid capital req'd
- $500K – $900K
- Better than avg vs category
- Franchise fee
- $100K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Training fee | $18K |
| Transfer fee | $150K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Tempo by Hilton Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Tempo by Hilton presents extreme risk as a pre-launch or failed brand with zero operating units, pending litigation, undisclosed financials, no going concern status, and unproven return potential.
Litigation (Item 3)
Five cases disclosed: (1) State of Nebraska v. Hilton Domestic Operating Company Inc. - pending government action alleging violations of Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act regarding mandatory guest fee disclosures, trial scheduled for 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchise termination dispute alleging breach of contract, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded in June 2022 settlement dismissing all claims regarding early franchise termination and promissory note breach; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded in September 2020 settlement regarding wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action (description incomplete in provided text).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Cherry Bekaert LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 67 / 100 rating
- 01MINORZero operating units with unknown growth trajectory indicates brand has not successfully launched or is in collapse phase
- 02HIGHPending consumer protection litigation regarding fee disclosures suggests regulatory scrutiny and potential franchisor transparency issues
- 03MINORNo average revenue or net income disclosure (Item 19) prevents prospective franchisees from validating investment returns
- 04HIGHGoing concern status is FALSE, indicating financial instability at franchisor level
- 05HIGHHistory of breach of contract litigation over terminations suggests adversarial franchisor-franchisee relationships
- 06MINORADA compliance consent decrees demonstrate operational/legal compliance failures
- 07HIGHMisappropriation of trade secrets litigation raises questions about brand integrity and IP protection
- 08MINOR22-year term with zero territory protection creates long-term commitment risk with no market exclusivity
- 09MED$20.3M investment range with 5% royalty on undisclosed revenues creates profitability uncertainty
- 10MINORBrand appears pre-launch or abandoned with zero franchisees, making performance validation impossible
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 | 22 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 8 |
View Item 3 litigation summary
Five cases disclosed: (1) State of Nebraska v. Hilton Domestic Operating Company Inc. - pending government action alleging violations of Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act regarding mandatory guest fee disclosures, trial scheduled for 2023; (2) Destin Platinum LLC v. Hampton Inns Franchise LLC - pending franchise termination dispute alleging breach of contract, not yet served; (3) Hilton Franchise Holding LLC v. Portland Hotel Ownership - concluded in June 2022 settlement dismissing all claims regarding early franchise termination and promissory note breach; (4) San Pedro Inn, LP v. Hilton Franchise Holding LLC - concluded in September 2020 settlement regarding wrongful termination claim under New Jersey Franchise Practices Act; (5) Kathleen Soule v. Hilton Worldwide, Inc. - class action (description incomplete in provided text).
Items 10, 11
Training & Operations
- Classroom training
- 143 hrs
- On-the-job training
- 6 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Tempo by Hilton · FDD (2023) PDF
Frequently asked questions
Frequently Asked Questions
What do Tempo by Hilton franchise owners earn?
Tempo by Hilton 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 Tempo by Hilton's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Tempo by Hilton (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.
Is Tempo by Hilton a good franchise to buy?
FranchiseVerdict rates Tempo by Hilton as a C-grade franchise with a risk score of 67 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.
For franchisors
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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.