Bottom line
- Total investment $17.4M including a $75K 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 85/100.
- 60 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 Vignette Collection unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Vignette Collection franchisees operate upscale, independent-styled hotel properties under a branded hospitality license. Day-to-day operations include managing guest services, maintaining brand standards set by the franchisor, collecting room revenue (subject to 5% royalty), and complying with brand licensing agreements. Franchisees serve as property owners/operators but must adhere to centralized brand directives and system requirements.
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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
This is a high-risk, likely unproven luxury hotel franchise backed by a litigious franchisor with going concern doubts, only one unit, zero financial transparency, and a $17.4M entry barrier with no growth evidence.
Score breakdown · what drove the 85 / 100 rating
- 01MEDMassive initial investment ($17.4M) with zero disclosed average revenue or net income — impossible to calculate ROI or validate profitability claims
- 02HIGHGoing concern status is FALSE, indicating potential solvency/operational continuity issues at franchisor level
- 03HIGHHigh-volume litigation involving franchisor (Holiday) and parent (IHG/SCH) with multiple breach of contract, unpaid fees, and improper business practice claims suggesting systemic disputes
- 04MINOROnly 1 operating unit with unknown growth trajectory — system appears non-existent or collapsed, indicating franchisee is essentially a guinea pig
- 05MINORNo territory protection despite massive capital commitment — franchisee faces direct cannibalization risk
- 06MINOR5% royalty on gross rooms revenue creates exposure to franchisor's aggressive enforcement; class actions reference vendor kickbacks suggesting hidden revenue drains
- 07HIGH20-year term locks franchisee into potentially deteriorating brand relationship with litigation-prone franchisor
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Vignette Collection · FDD (2024) PDF