FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Choice Hotels International, Inc..
Based on 2023 FDD · 8 filings in corpus
This page is using 2023 FDD source data. Verify the franchisor's current FDD before relying on costs, fees, or Item 19.
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Choice Hotels International, Inc. franchise shows an estimated initial investment of $2.9M – $18.6M. Reported owner economics show $115K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $45K franchise fee · 7.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Choice Hotels International, Inc. requires a total initial investment of $2.9M to $18.6M (midpoint approximately $10.7M), with an initial franchise fee of $45K. The ongoing fee burden is 7.5% (5.5% royalty plus 2% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
According to Item 19 of the 2023 FDD, the median revenue for Choice Hotels International, Inc. locations is $1.5M. The implied franchisee EBITDA is approximately $115K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 1.1% with a payback period of approximately 93.3 years.
Choice Hotels International, Inc. operates approximately 133 franchised units. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2023 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2013). 84 loans across 26 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
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