Bottom line
- Total investment $219K – $10.9M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 63/100. SBA loan default rate of 0.0% across 420 loans (below the industry average).
- 14 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 Travelodge unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Overview
About
Franchisees operate budget hotel properties under the Travelodge brand, managing daily operations including front desk, housekeeping, maintenance, and guest services. They generate revenue primarily through nightly room rates and ancillary services while paying 5% of gross room revenues as royalties, regardless of occupancy rates or profitability.
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 · 9 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
Travelodge presents high risk due to system contraction, extensive litigation involving both consumers and franchisees, regulatory FTC involvement, and complete lack of unit-level financial disclosure that would demonstrate franchisee profitability.
Score breakdown · what drove the 63 / 100 rating
- 01MINORDeclining unit count (-0.3% YoY) indicates system contraction despite 20-year terms
- 02MINORMultiple class action lawsuits involving marketing fees and price fixing suggest franchisor practices under legal scrutiny
- 03MINORFTC/FFC regulatory actions on acquisitions raise corporate governance and antitrust concerns
- 04HIGHSignificant litigation with franchisees over non-payment and contract breaches indicates franchisor-franchisee relationship deterioration
- 05MEDNo disclosed average revenue or net income data (no Item 19) prevents assessment of unit-level profitability
- 06MINORWide investment range ($218K-$10.9M) suggests unclear unit economics or multiple hotel types with different viability
- 07MINOR5% royalty on gross room revenue is high-friction during low-occupancy periods
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
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Travelodge · FDD (2024) PDF