FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Tru by Hilton.
Based on 2025 FDD · 3 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Tru by Hilton franchise shows an estimated initial investment of $12.8M – $18.6M. 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.
Quick fee read: $100K franchise fee · 9.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Tru by Hilton requires a total initial investment of $12.8M to $18.6M (midpoint approximately $15.7M), with an initial franchise fee of $100K. The ongoing fee burden is 9.5% (5.5% royalty plus 4% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.
Tru by Hilton 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.
Tru by Hilton operates approximately 248 franchised units. The brand is growing, with a 12.1% net unit increase year-over-year, indicating franchisee demand and system health. 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 2025 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 (2017-2025). 7 loans across 6 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Hilton franchise costs $49.7M-$204.3M to open with a $85,000 franchise fee. 5% royalties.
Most franchise buyers fixate on the royalty percentage but miss the full fee schedule in Item 6. ...
Franchise services, franchise development platforms, and franchise software can offer higher marg...
SBA 7(a) franchise loan approval rates by brand, default rates by sector, and what lenders look f...
FDD Item 5 discloses the initial franchise fee and all other upfront fees paid before opening. Le...
5 data-driven questions every Tru by Hilton franchise buyer should ask.