Radisson Individuals Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$2,953,250 - $58,847,500
Franchise Fee
$60,000
Total US Locations
6,184
Business Summary
Radisson Individuals operates hotels that provide lodging services to the public. The brand focuses on independent and boutique properties, often conversions of existing hotels, that offer upper upscale on-site amenities like restaurants, bars, wellness facilities, and free Wi-Fi, aiming to provide guests with unique local experiences.
Corporate History
Choice Hotels International, Inc., the parent company of Radisson Individuals, began as Quality Courts United in 1941, formalized by seven independent motel owners in Florida who met in 1939 to share best practices. It became a for-profit corporation, Quality Courts Motels, Inc., in 1963, and later changed its name to Choice Hotels International, Inc. in 1990 (with a brief name change in the mid-90s). Choice Hotels International, Inc. has since expanded its global franchise system with various hotel brands. In August 2022, Choice Hotels International, Inc. acquired Radisson Hospitality, LLC, which included the Radisson Individuals brand. Radisson International had franchised hotels under the Radisson Individuals brand from 2020 to 2022, and Choice Hotels International, Inc. began offering Radisson Individuals franchises in April 2023.
Financial Overview
Investment Range
$2,953,250 - $58,847,500
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$112,500
Royalty %
6%
Marketing %
3%
Equipment Costs (Low)
$14,750
Equipment Costs (High)
$10,740,000
Working Capital
$1,400,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Radisson Individuals' parent company, Choice Hotels International, Inc., has received an unqualified audit opinion for its financial statements, meaning the statements are presented fairly. However, the company reported a negative shareholders' equity of ($45,271,000) in 2024, a change from positive equity in 2023. Choice Hotels International, Inc. also had negative working capital in 2024, with current assets of $339,086,000 and current liabilities of $462,721,000. A critical audit matter highlighted the complexity of accounting for the Choice Privileges Loyalty Program, with significant revenues and liabilities related to points. Despite these points, the company shows consistent net income, with $299.7 million in 2024.
Financing Details
Radisson Individuals, through its parent company Choice Hotels International, Inc., offers several financing options. For the initial affiliation fee, Choice Hotels International, Inc. may provide an interest-free promissory note, typically due within three months. Additionally, Choice Hotels International, Inc. may provide "Selected Capital Support" in the form of a 10 or 20-year forgivable promissory note to help offset development costs for strategically important properties; this loan amount is forgiven over its term if the franchisee remains in good standing. An "Incentive Program" is available for underrepresented entrepreneurs and honorably discharged veterans, offering a forgivable promissory note of $3,500 per room (up to $400,000) for 10 years, or a 5-year note for 50% of that amount, also forgiven over its term if the franchisee avoids default. For re-licensing existing Radisson Individuals hotels, qualifying franchisees can receive a 50% discount on the affiliation fee. Choice Hotels International, Inc. also has non-exclusive agreements with third-party lenders. PMC Commercial Trust offers conventional and SBA financing ranging from $500,000 to $5,000,000, typically requiring a first lien on assets and a personal guarantee. Balboa Capital Corporation and Ascentium Capital LLC offer conventional and lease financing, ranging from $5,000 to $1,000,000 and $5,000 to $500,000 respectively, for costs like meeting brand standards or equipment. These third-party loans usually require security interests and personal guarantees. Choice Hotels International, Inc. receives annual payments from these third-party lenders for granting them access to its marketing channels.
Performance Metrics
Total US Locations
6,184
Franchised Units
1
Corporate Units
0
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
62
Litigation Summary
Radisson Individuals' parent company, Choice Hotels International, Inc., has an active legal history with a mix of pending and recently resolved cases. There are 4 pending lawsuits, including a 2014 class action in Canada regarding destination marketing fees, two ongoing cases from 2020 and 2023 alleging discriminatory/anti-competitive practices and guest data misuse by franchisees, and a 2024 case alleging fraudulent rebate schemes and other violations. Additionally, Choice Hotels International, Inc. initiated 54 arbitration/court cases in 2024 to collect royalties and other debts from franchisees. Recently resolved cases include a 2021 franchisee dispute settled for $85,000, a 2024 judgment against Choice Hotels International, Inc. for $779,398.40 in an arbitration, a 2024 judgment where Choice Hotels International, Inc. was awarded $603,483 in fees, and a 2024 arbitration where Choice Hotels International, Inc. recovered $256,051 in fees but was liable for $4,411,678.56 for wrongful termination and $430,125.87 in fees.
Bankruptcy History
Radisson Individuals' parent company, Choice Hotels International, Inc., does not have any bankruptcy history that needs to be reported in this document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Radisson Individuals does not offer renewal or extension rights after the initial 20-year franchise term expires.
Training & Support Program
Franchisor Assistance
Radisson Individuals, through Choice Hotels International, Inc., provides extensive assistance to franchisees. Before opening, Choice Hotels International, Inc. helps with site approval, construction consultation, and reviews architectural plans and model rooms. An Onboarding Project Manager and Opening Services Manager guide franchisees through milestones, program enrollment, and training coordination to prepare for opening and initial quality reviews. Required training includes a 3-day Upscale Immersion Program at the North Bethesda, MD headquarters for General Managers and Directors of Sales, covering various operational and brand aspects, plus a self-paced virtual Hospitality Operations Success Training (HOST) leadership certification for General Managers. For re-licensed hotels, customized virtual training videos and live sessions are provided. After opening, Radisson Individuals offers revenue ramp-up guidance, a quality assurance program with periodic visits and guest surveys, and comprehensive marketing and reservation services funded by the monthly Marketing and Reservation Fee. This includes national advertising campaigns and access to a central reservation system. Franchisees are required to use specific technology systems for property management (ORACLE Opera Cloud PMS), food and beverage operations (Toast, Inc.), sales account management, service recovery, guest messaging (Medallia Concierge), and may be required to install custom music and scent systems. Choice Hotels International, Inc. also reviews and approves changes to hotel room counts.
Initial Training Hours
59
Training Location
Corporate headquarters in North Bethesda, Maryland
Ongoing Support
After a Radisson Individuals hotel opens, Choice Hotels International, Inc. provides several ongoing support services. A dedicated Upscale team offers new hotel revenue ramp guidance to optimize sales and marketing plans. There is a quality assurance program involving periodic hotel visits and guest surveys to ensure compliance with standards, with consequences for failing to meet quality requirements. Choice Hotels International, Inc. also delivers extensive marketing and reservation services, including a central reservation system and national advertising campaigns, funded by a monthly Marketing and Reservation Fee. Franchisees also receive ongoing assistance with various mandatory technology systems, such as the ORACLE Opera Cloud PMS for hotel management, Toast, Inc. for food and beverage point-of-sale, and Medallia Concierge for guest messaging.
Franchise Requirements
Ideal Candidate Profile
Radisson Individuals seeks franchisees who are majority owners actively engaged in the deal process and meet the standard credit review. Ideal candidates should demonstrate characteristics that broaden access to the hospitality industry or be honorably discharged veterans. Franchisees must ensure the hotel has a certified General Manager who does not manage other hotels, a full-time Director of Sales with at least two years of upscale sales experience (or three years as a Business Travel/Groups Sales Manager), and a full-time Director of Food & Beverage. Franchisees are also required to hire an approved hotel management company.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
Non-Exclusive
Staffing Notes
Radisson Individuals requires a core management team including a General Manager, Assistant General Manager, Director of Sales, Executive Housekeeper, Maintenance Engineering Leader, and Food & Beverage Leader. The General Manager must be certified and dedicated solely to that hotel. The Director of Sales must work full-time (minimum 40 hours/week) on sales and have at least two years of upscale sales experience or three years as a Business Travel/Groups Sales Manager. A full-time Director of Food & Beverage is also mandatory and cannot have additional part-time duties. Additionally, franchisees must contract with an approved hotel management company to operate and manage the hotel.