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Tempo by Hilton Franchise Cost, Revenue & Review 2026

LodgingVAFranchising since 2019
CAverageAverage40/100Editorial grade from public filings; not investment advice.
Investment
$25.5M – $37.8M
Disclosed sales
not disclosed
SBA charge-off
Not SBA-matched

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02579FDD 2026Data QualityStandard71%Pre-opening
Manager-run OKNo: No territory protection

Data from FDD filing

Analysis by FranchiseVerdict Research · Methodology

Tempo by Hilton is a midscale lifestyle hotel franchise offering modern, wellness-minded properties. Franchisees develop and operate the hotels, managing front desk, housekeeping, and revenue under Hilton standards.

FranchiseVerdict summary · 2026

A Tempo by Hilton franchise requires a total initial investment of $25.5M – $37.8M, including a $100K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Investment
$25.5M – $37.8M
64th pct Lodging
Avg gross sales
N/A
Royalty
5.0%
3rd pct Lodging
Units
6
18th pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$25.5M – $37.8M
Median $8.9M
above median ↑, worse than category
Franchise Fee
$100K
Median $50K
above median ↑, worse than category
Liquid Capital Req'd
$700K – $1.1M
Median $312K
above median ↑, worse than category
Avg Revenue
Not disclosed
Franchisor makes none
Royalty Rate
5.0%
Median 5.0%
near median
Ongoing Fees
9.0% of rev
Median 8.5%
near median
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
6 units
Median 60 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.7%
below median ↓, better than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
15 cases
Review carefully

Green = favorable by >10% vs Lodging median · 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 $25.5M – $37.8M including a $100K franchise fee, 5.0% ongoing royalty.
  • RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
  • RISKVerdict C (Average), verdict score 40/100 (higher is better).
  • GROWTHNegative, pipeline stalled: 61 agreements signed but not yet open against 6 open outlets (Item 20).
  • LEGAL15 litigation matters disclosed in Item 3, higher than typical. Of these, 8 name the franchisor itself, 7 its parent, affiliates or predecessor. Pending claims are allegations, not findings.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Hilton Franchise Holding LLC
Parent company
Hilton Domestic Operating Company Inc.
FDD Item 1, page 9 of the 2026 FDD
Ultimate parent
Hilton Worldwide Holdings Inc. (NYSE: HLT)
FDD Item 1, page 9 of the 2026 FDD
CEO title
Chief Executive Officer and President
Christopher J. Nassetta
Incorporated in
Delaware
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

Same owner · FDD Item 1, page 9

17 other brands on this site name Hilton Worldwide Holdings Inc. (NYSE: HLT) as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Christopher J. Nassetta
Headquarters
VA
Founded
2007
FDD year
2026
States available
0

Can you afford it, and what does the money buy?

Entry cost runs 256% above the typical lodging franchise.

Total investment (Item 7)$25.5M – $37.8MCited, not corroborated — printed on page 43 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Franchise fee$100,000Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Royalty5.0%Cited, not corroborated — printed on page 29 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Ad fund4.0%Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Working capital$700K – $1.1M

Source: FDD 2026 · Items 5–7

FDD Item 7 · 2026 filing

Initial investment breakdown

Tempo by Hilton: Item 7 initial investment breakdown
Cost componentLowHigh
Initial franchise fee$100K$100K
Working capital (3–6 mo)$700K$1.1M
Equipment, build-out, other$24.7M$36.6M
Total initial investment$25.5M$37.8M

Source: Tempo by Hilton 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
$25.5M – $37.8M
Middle of category vs category
Liquid capital req'd
$700K – $1.1M
Middle of category vs category
Franchise fee
$100K
Middle of category vs category
Royalty
5.0%
typical 6–8%
Ad fund
4.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Ongoing fees · Item 6

Tempo by Hilton: Item 6 recurring fees
FeeAmount
Royalty5.0% of gross sales
Marketing / ad fund4.0% of gross sales
Training fee$18K
Transfer fee$150K
Inventory (initial)$275K – $800K
Total fee load9.0% of rev
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

Tempo by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.

Returns model · single-unit ROIC

What would one Tempo by Hilton unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $25.5M–$37.8M (midpoint used)
FDD reports $700K–$1.1M

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$32.6M
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

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

No financial performance representation

This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.

Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Showing the headline figures — all 113 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Fee burden

Total ongoing fee load of 9.0% (near the Lodging median).

Disclosure

This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

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 medians

How Tempo by Hilton Compares

Metric
Tempo by Hilton
Category median
vs median
Investment
$31.7M
$8.9Mmiddle half $1.2M–$18.3M · n=96
Above median, worse than category
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
6
60middle half 6–245 · n=126
Below median, worse than category

Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units6Cited, not corroborated — printed on page 91 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
6
Opened
2
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
N/A
Company-owned
0
Corporate units in the system

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
61
10.17 per open outlet · Item 20 Table 5
Projected new
5
Franchisor's next-year forecast
2023
1
Franchised units
2024
4+3
Franchised units
2025
6+2
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

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.

What could kill this investment?

SBA charge-offNot SBA-matched
Verdict score40/100 (higher is better)
Litigation15 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage40Verdict score 40/100

Pre-opening Hilton hotel brand (0 units open) backed by a strong franchisor ($662M net worth, $1.23B net income). 8 disclosed litigation cases exist but are routine for a system of Hilton's scale and mostly involve affiliated Hilton brands rather than Tempo. No Item 19, no bankruptcy/going-concern.

Low confidence±15 pts
2555

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Cherry Bekaert LLP

Franchisor revenue (Item 21)

Yr 1: $1229.5MYr 2: $883.3MNon-royalty: $4.8M

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.

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 40 / 100 verdict

  1. 01MINORPre-opening: 0 units open
  2. 02HIGH8 litigation cases, but routine relative to Hilton's system scale and largely affiliate-related
  3. 03MINORStrong financials: net worth $662M, net income $1.23B
  4. 04MINORNo Item 19; no bankruptcy/going-concern

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 113 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail15 matters · Item 3

Litigation cases

The franchisor

Pending (3)

  • Bow Hospitality LLC v. Hilton Franchise Holding LLC

    pending

    Brought by a franchisee · filed 2025-01-24 · Superior Court of Kent County, Rhode Island · KC-2025-1291

    “Bow Hospitality LLC v. Hilton Franchise Holding LLC (Superior Court of Kent County, Rhode Island), Case No. KC-2025-1291. On January 24, 2025, the plaintiff filed suit against us alleging breach of contract and breach of the covenant of good faith and fair dealing under the Rhode Island Dealership Act in connection with our termination of plaintiff’s franchise agreement”Page 20 of the 2026 FDD, Item 3
  • Hilton Franchise Holding LLC v Unique Crowne Hospitality LLC et al.

    pending

    Brought against a franchisee · filed 2025-08-25 · United States District Court for the Eastern District of Virginia (removed from the Circuit Court for Fairfax County, Virginia) · 1:25-cv-01604-MSN-WEF

    “Hilton Franchise Holding LLC v Unique Crowne Hospitality LLC et al. (E.D. Va.) Case No. 1:25-cv- 01604-MSN-WEF. On August 25, 2025, we filed suit in the Circuit Court for Fairfax County, Virginia, against a former DoubleTree franchisee and its guarantor for damages and fees of about $2,200,000 arising from the early termination of the franchise agreement”Page 20 of the 2026 FDD, Item 3

    Outcome:“On December 22, 2025, the defendants filed a counterclaim alleging breach of contract and breach of the implied covenant of good faith and fair dealing.”

  • In re: 177 BFP, LLC

    pending

    Brought against a franchisee · filed 2025-08-14 · US Bankruptcy Court, E.D. Penn. · 25-13225-amc

    “In re: 177 BFP, LLC (US Bankruptcy Court, E.D. Penn., Case No. 25-13225-amc). On August 14, 2025, we filed a petition in this Chapter 7 bankruptcy action to collect an unpaid judgment against a former Embassy Suites franchisee for amounts past due, liquidated damages, and attorneys’ fees.”Page 24 of the 2026 FDD, Item 3

    Outcome:“The Court appointed a trustee on October 7, 2025 and a meeting of the creditors is scheduled for April 8, 2026.”

Concluded (4)

  • AAAA Property Partners LLC v. Hilton Franchise Holding LLC

    dismissed

    Brought by a franchisee · filed 2025-01-24 · M.D. Fla. (removed from Orange County, Florida) · 6:25-cv-00132-CEM-RMN

    “AAAA Property Partners LLC v. Hilton Franchise Holding LLC (M.D. Fla. Case No. 6:25-cv-00132- CEM-RMN). On January 24, 2025, the plaintiff filed suit against us in Orange County, Florida (Filing No. 215324302) alleging breach of contract arising in connection with our termination of plaintiff’s franchise for the Hilton Garden Inn Orlando I-4 Millenia Boulevard Mall.”Page 21 of the 2026 FDD, Item 3

    Outcome:“The parties resolved the case on March 5, 2025 by agreeing to terminate the Franchise Agreement as of January 27, 2025, and the plaintiff agreed to dismiss the lawsuit and sell the property within 150 days. We also agreed not to enforce the former franchisee’s post-termination obligations, including the payment of liquidated damages.”

  • Hilton Franchise Holding LLC v. Empower Metro Center LLC

    settled

    Brought against a franchisee · filed 2025-02-28 · Cir. Ct. of Fairfax County, Virginia · CL-2025-0003051

    “Hilton Franchise Holding LLC v. Empower Metro Center LLC (Cir. Ct. of Fairfax County, Virginia, Case No. CL-2025-0003051). On February 28, 2025, we filed a complaint against a former Hampton brand franchisee for damages and fees arising from the early termination of the franchise agreement for failure to commence or complete the construction of the hotel.”Page 24 of the 2026 FDD, Item 3

    Outcome:“On January 14, 2026, the parties agreed to a settlement that was favorable to us and we agreed to dismiss the case.”

  • Hilton Franchise Holding LLC v. Portland Hotel Ownership, et al.

    settled

    Brought against a franchisee · filed 2020-09-17 · Fairfax County Circuit Court · 2020-14233

    “Hilton Franchise Holding LLC v. Portland Hotel Ownership, et al. (Fairfax County Circuit Court, Case Number, Case Number 2020-14233). On September 17, 2020, we filed suit against Portland Hotel Ownership, LLC, a former franchisee of a Curio brand hotel, for breach of contract arising from the early termination of the franchise agreement.”Page 22 of the 2026 FDD, Item 3

    Outcome:“On July 28, 2022, the parties settled this case by agreeing to dismiss all claims and exchange general releases.”

  • San Pedro Inn, LP v. Hilton Franchise Holding LLC

    settled

    Brought by a franchisee · filed 2019-08-28 · Superior Court of New Jersey Chancery Division General Equity Part, Union County · UNN-C- 121 19

    “San Pedro Inn, LP v. Hilton Franchise Holding LLC (Superior Court of New Jersey Chancery Division General Equity Part, Union County Docket No. UNN-C- 121 19). On July 18, 2019, we sent a notice to terminate plaintiff’s franchise for a Hampton hotel for failure to cure a material breach of the franchise agreement.”Page 23 of the 2026 FDD, Item 3

    Outcome:“The parties settled the case on September 25, 2020. The parties agreed to dismiss all claims, exchange general releases, and terminate the franchise on April 28, 2021 without the payment of any termination damages or litigation costs by either party.”

Status not stated in the filing (1)

  • Hilton Franchise Holding LLC v. ML Plaza Owner LLC

    Brought against a franchisee · filed 2026-02-27 · Cir. Ct. of Fairfax County, Virginia · CL-2026-0003448

    “Hilton Franchise Holding LLC v. ML Plaza Owner LLC (Cir. Ct. of Fairfax County, Virginia), Case No. CL-2026-0003448. On February 27, 2026, we filed a complaint against a former Hilton brand franchisee for amounts past due and liquidated damages arising from the early termination of the franchise agreement for failing to pay monthly fees.”Page 23 of the 2026 FDD, Item 3

Parent, affiliates and predecessor

Pending (4)

  • Hanson Dai v. SAS Institute Inc.

    pending

    Third-party plaintiff · Hilton Worldwide (Hilton Worldwide Holdings Inc.) · filed 2024-04-26 · United States District Court for the Northern District of California · 4:24-cv-02537

    “Hanson Dai v. SAS Institute Inc. (N.D. Cal.), Civil Case No. 4:24-cv-02537 (Class Action). On April 26, 2024, a putative class action complaint captioned Dai v. SAS Institute Inc., Civil Case No. 4:24-cv-02527, was filed in the United States District Court for the Northern District of California against Integrated Decisions and Systems, Inc. and SAS Institute, Inc. (together, “IDeaS”)”Page 20 of the 2026 FDD, Item 3

    Outcome:“The hotel defendants filed a motion to dismiss which has been fully briefed and pending before the court since October 20, 2025.” (page 21)

  • In re Extended Stay Hotel Antitrust Litigation

    pending

    Third-party plaintiff · Hilton Worldwide (Hilton Worldwide Holdings Inc.) · filed 2024-07-24 · United States District Court for the Northern District of California (transferred from the Northern District of Illinois) · 4:24-civil-09060

    “In re Extended Stay Hotel Antitrust Litigation (N.D. Cal.), Civil Case No. 4:24-civil-09060 (Class Action). On July 24, 2024, a putative class action complaint captioned Au v. Integrated Decisions and Systems, Inc., Civil Case No. 1:24-civil-06324, was filed in the United States District Court for the Northern District of Illinois against IDeaS,”Page 20 of the 2026 FDD, Item 3

    Outcome:“The hotel defendants filed a motion to dismiss which has been fully briefed and pending before the Court since October 24, 2025.”

  • Jeanette Portillo, et. al. v. CoStar Group, Inc., et. al.

    pending

    Third-party plaintiff · Hilton Domestic Operating Company Inc. (substituted for Hilton Worldwide) · filed 2024-02-20 · United States District Court for the Western District of Washington · 2:24-cv-00229

    “Jeanette Portillo, et. al. v. CoStar Group, Inc., et. al. (W.D. Wash.), Civil No. 2:24-cv-00229 (Class Action). On February 20, 2024, plaintiffs filed a class action lawsuit against the CoStar Group, Inc. and its subsidiary STR, Inc., together with several hotel companies including Hilton Worldwide. Plaintiffs allege that the defendants violated the Sherman Act by exchanging competitive data”Page 21 of the 2026 FDD, Item 3

    Outcome:“The hotel defendants filed a motion to dismiss which has been fully briefed and pending before the court since January 6, 2026.”

  • Ryan Segal v. Amadeus IT Group, S.A., et. al.

    pending

    Third-party plaintiff · Hilton Domestic Operating Company, Inc. (substituted for Hilton Worldwide) · filed 2024-03-01 · United States District Court for the Northern District of Illinois · 1:24-civil-01783

    “Ryan Segal v. Amadeus IT Group, S.A., et. al. (N.D. Ill.), Civil No. 1:24-civil-01783 (Class Action). On March 1, 2024, plaintiff filed a class action lawsuit against Amadeus IT Group, S.A., Amadeus Hospitality Americas, Inc., and several hotel companies including Hilton Worldwide. Plaintiff alleges that the defendants violated the Sherman Act by agreeing to exchange certain data through Amadeus,”Page 21 of the 2026 FDD, Item 3

    Outcome:“The hotel defendants filed a motion to dismiss which has been fully briefed and pending before the court since August 27, 2025.”

Concluded (3)

  • State of Texas v. Hilton Domestic Operating Company Inc.

    settled

    Government or regulatory action · Hilton Domestic Operating Company Inc. ('Hilton') · filed 2023-05-23 · District Court of Collin County, Texas · 296-02595-2023

    “State of Texas v. Hilton Domestic Operating Company Inc. (District Court of Collin County, Texas, CAUSE NO. 296-02595-2023). On May 23, 2023, the plaintiff filed suit against Hilton alleging the violations of the Texas Deceptive Trade Practices Act in relation to how mandatory guest fees are disclosed to consumers.”Page 22 of the 2026 FDD, Item 3

    Outcome:“In January 2025, the parties settled the case. Without admitting any fault, Hilton agreed to pay Texas $2.1 million”

  • State of Nebraska v. Hilton Domestic Operating Company Inc.

    settled

    Government or regulatory action · Hilton Domestic Operating Company Inc. ('Hilton') · filed 2019-07-23 · District Court of Lancaster County, Nebraska · D02CI190002366

    “State of Nebraska v. Hilton Domestic Operating Company Inc. (District Court of Lancaster County, Nebraska, Case No. D02CI190002366). On July 23, 2019, the plaintiff filed suit against Hilton alleging the violations of the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act in relation to how mandatory guest fees are disclosed to consumers.”Page 22 of the 2026 FDD, Item 3

    Outcome:“In February 2024, without admitting any fault, Hilton entered into a settlement agreement with Plaintiff and agreed to pay $300,000 and clearly disclose all mandatory fees and the total price for a booking.”

  • U.S. v. Hilton Hotels Corporation, et al.

    judgment

    Government or regulatory action · Hilton Hotels Corporation ('HHC'; the franchisor's previous parent, later Park Hotels & Resorts) · filed 1970 · United States District Court, District of Oregon · 70-310

    “U.S. v. Hilton Hotels Corporation, et al. (United States District Court, District of Oregon, Case No. 70-310). On or about May 12, 1970, the United States filed a civil complaint against HHC (among other defendants), alleging the violation of Section 1 of the Sherman Act consisting of engaging in a combination and conspiracy in restraint of trade”Page 23 of the 2026 FDD, Item 3

    Outcome:“On or about November 29, 1971, pursuant to a stipulation filed October 26, 1971, the court entered a final judgment against HHC”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.

Initial term22 yrs
Renewal termNot extracted
TerritoryNone (caution)
Initial training149 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term22 years
Allowed renewalsℹ0
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ3 years
Right of first refusalℹNo
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ16
Curable defaultsℹ4
Mandatory arbitrationNo
Arbitration locationNew York, New York (Puerto Rico franchisees only)
Jury trial waiverYes
Governing lawNew York
Litigation count15

Items 10, 11

Training & Operations

Classroom training
143 hrs
On-the-job training
6 hrs
Training location
On-site and corporate
Ongoing training
Required
Site selection
Franchisee, subject to franchisor approval
Franchisor financing
Not offered
Item 10
POS system
OnQ
Operating tech stack

Items 5 & 11

Franchisor Support

✗Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: OnQ

Item 20 · call current owners

Franchisee Contacts

1 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 1 contacts · $49
Free preview
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Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Tempo by Hilton franchise?

The total investment to open a Tempo by Hilton franchise ranges from $25.5M – $37.8M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Tempo by Hilton franchise owners earn?

Tempo by Hilton makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns Tempo by Hilton?

Tempo by Hilton is franchised by Hilton Franchise Holding LLC. Its parent company is Hilton Domestic Operating Company Inc.. The ultimate parent named in the FDD is Hilton Worldwide Holdings Inc. (NYSE: HLT). Source: FDD Item 1, 2026 filing.

What is Item 19 in the Tempo by Hilton 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 Tempo by Hilton FDD and qualifies whose outlets they describe.

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.

How many Tempo by Hilton franchise locations are there?

As of their most recent FDD filing, Tempo by Hilton has 6 total units in the United States, including 6 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.

Is Tempo by Hilton a good franchise to buy?

FranchiseVerdict rates Tempo by Hilton as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.