ScorecardWorth It?HistoryDatabaseCompareDistress Signals
TravelItem 19: ✓ DisclosedHigh Confidence · 85/100FDD data: 2024 · Aging

Sonesta RL Hotels Franchising Inc. Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Sonesta RL Hotels Franchising Inc..

Based on 2024 FDD · 6 filings in corpus

FranchiseIQ Score
72
B
Moderate-Low Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C+
65/100
3/7 metrics · Medium confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Sonesta RL Hotels Franchising Inc. franchise cost and make?

Based on FDDIQ's FDD corpus, a Sonesta RL Hotels Franchising Inc. franchise shows an estimated initial investment of $9.8M – $14.2M. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$9.8M – $14.2M
Total initial investment
Profit / Revenue
Item 19 not disclosed
FDD Item 19 signal
Payback Signal
Estimate unavailable
Modeled return metric
SBA Default Rate
No matched SBA history
Loan repayment history
Compare franchise costsEstimate franchise ROICheck SBA default ratesBrowse Travel franchisesCompare similar franchises

Quick fee read: $65K franchise fee · 8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to Sonesta RL Hotels Franchising Inc., check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Sonesta RL Hotels Franchising Inc. Franchise Analysis

Sonesta RL Hotels Franchising Inc. requires a total initial investment of $9.8M to $14.2M (midpoint approximately $12.0M), with an initial franchise fee of $65K. The ongoing fee burden is 8% (5% royalty plus 3% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.

Sonesta RL Hotels Franchising Inc. does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.

Sonesta RL Hotels Franchising Inc. operates approximately 58 franchised units. The brand is growing, with a 3.6% net unit increase year-over-year, indicating franchisee demand and system health.

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 2024 FDD filing. FDDIQ Editorial Team · Methodology

Total Investment Range$9.8M$14.2M
MinMid: $12.0MMax

Key Metrics

Franchise Fee
$65K
Royalty Rate
5%
Ad Fund Rate
3%
Total Burden
8.0%
Royalty + ad fund
Units (2023)
58
+2 vs prior yr
Net Unit Growth
3.6%
Year over year
Cash-on-Cash Return
~8–15%
Annual estimated return
Payback Period
~5–12 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
~$800K–$2M
Item 19 disclosed
Premium Data

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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Sonesta RL Hotels Franchising Inc. vs. Travel Average

MetricSonesta RL Hotels Franchising Inc.Travel Avg
SBA Default Rate - 7.2%
Cash-on-Cash Return - 15.5%
Total Investment$12.0M$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

Compare

Sonesta RL Hotels Franchising Inc. vs SailTimeSonesta RL Hotels Franchising Inc. vs Sonesta RL Hotels Franchising Inc. (Red Lion)Sonesta RL Hotels Franchising Inc. vs Choice Hotels International, Inc.

Similar Franchises · Travel

SailTime
Limited Data
$75K$152K
Sonesta RL Hotels Franchising Inc. (Red Lion)
$541K$33.5M
Choice Hotels International, Inc.
$2.9M$18.6M
SailTime
$75K – $152K
Sonesta RL Hotels Franchising Inc. (Red Lion)
$541K – $33.5M
Choice Hotels International, Inc.
$2.9M – $18.6M
SureStay
$186K – $24.3M

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Questions to Ask Before You Sign

5 data-driven questions every Sonesta RL Hotels Franchising Inc. franchise buyer should ask.

  1. 1.What is Sonesta RL Hotels Franchising Inc.'s SBA default rate compared to its competitors?Learn more →
  2. 2.Does Sonesta RL Hotels Franchising Inc. disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Sonesta RL Hotels Franchising Inc.Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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