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.
- Rated AVOID with a risk score of 82/100.
- 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
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 Tempo by Hilton unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 82 / 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
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tempo by Hilton · FDD (2023) PDF