FranchiseVerdict
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B62/100FDD 2026

Trend Hotels and Suites by My Place — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
62 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
13
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
South Dakota
State whose law governs disputes — relevant if you're not based there

What drove the 62/100 rating

Risk Score Breakdown

  1. 01MINORZero operating units with unknown growth trajectory indicates brand has not successfully launched or has experienced complete system collapse
  2. 02HIGHActive litigation with former franchisee alleging misrepresentation during sales process and franchisor non-compliance—core credibility issue
  3. 03HIGH'Going Concern' status is FALSE, suggesting potential financial instability or viability questions about the franchisor itself
  4. 04MEDNo disclosed average revenue or net income data prevents validation of ROI claims and suggests opacity or poor unit performance
  5. 05MINOREscalating royalty structure (0% to 5%) combined with high investment range ($272.5K–$2.94M) and unproven unit economics creates unsustainable cost burden
  6. 06MINORArbitration counterclaims alleging misrepresentations indicate pattern of franchisor-franchisee disputes and potential sales practice concerns

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.