Vignette Collection Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$18,039,791 - $85,017,180
Franchise Fee
$75,000
Total US Locations
2
Business Summary
Vignette Collection operates luxury hotels targeting upper-upscale and entry-level luxury travelers who seek unique, one-of-a-kind experiences. These full-service facilities, part of the IHG global system, typically include more than 75 guest rooms, at least one three-meal restaurant, a bar or lounge, and a fitness center. The brand emphasizes delivering memorable rituals and unique stays while also focusing on providing a positive impact within its hotels and local communities.
Corporate History
Holiday Hospitality Franchising, LLC, the licensor for Vignette Collection, was formed on November 3, 1989, initially named Holiday Inns Franchising, Inc., before changing its name and converting to a limited liability company. While its predecessors operated hotel businesses and offered licenses starting around 1953, Holiday Hospitality Franchising, LLC began specifically offering licenses for Vignette Collection hotels in the United States in September 2021. The company is a subsidiary of InterContinental Hotels Group PLC, with Six Continents Hotels, Inc. serving as its direct corporate parent. Holiday holds master license agreements to operate and sublicense various hotel brands, including Vignette Collection, across the United States and Canada.
Financial Overview
Investment Range
$18,039,791 - $85,017,180
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$100,000
Royalty %
5%
Marketing %
3.5%
Equipment Costs (Low)
$5,722,941
Equipment Costs (High)
$9,933,015
Working Capital
$1,500,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Holiday Hospitality Franchising, LLC, the licensor for Vignette Collection, has received an unqualified audit opinion, indicating its financial statements are presented fairly. The company demonstrates strong financial performance with a net income of $67.5 million in 2024, an increase from $54.3 million in 2023 and $43.4 million in 2022. It manages substantial financial interactions with affiliates, holding significant receivables and payables. The auditors found no substantial doubt about Holiday's ability to continue as a going concern. Its parent company, Six Continents Hotels, Inc., also received an unqualified opinion, reporting a net income of $733.1 million in 2024, $760.7 million in 2023, and $450.5 million in 2022, with adequate financial resources to support its operations.
Financing Details
Vignette Collection does not offer any formal program for direct or indirect financing. However, Holiday Hospitality Franchising, LLC, its direct corporate parent Six Continents Hotels, Inc., or their affiliate, General Innkeeping Acceptance Corporation, may provide loans or guaranties to franchisees. These potential financing options would be negotiated on a case-by-case basis, and any decision to provide a loan or guaranty is made at the sole discretion of Holiday, Six Continents Hotels, Inc., or General Innkeeping Acceptance Corporation. Such decisions require approval from their Executive Committee and Board of Directors. Franchisees are ultimately responsible for securing adequate financing for all expenses related to the development, opening, and operation of their Vignette Collection hotel.
Performance Metrics
Total US Locations
2
Franchised Units
2
Corporate Units
0
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
37
Litigation Summary
Holiday Hospitality Franchising, LLC, which offers Vignette Collection licenses, has several ongoing legal disputes. One pending case, filed in October 2023, involves a former Holiday Inn & Suites licensee who alleges misrepresentation by Holiday and seeks a declaratory judgment that the license agreement is unconscionable. Holiday has counterclaimed for over $2.1 million in liquidated damages and unpaid fees. Another significant ongoing case, appealed in September 2024, is with Scion Hotels LLC, a Holiday Inn licensee in New Jersey. Scion alleges wrongful non-renewal and unreasonable performance standards, claiming Holiday concealed plans for a nearby competing Holiday Inn conversion, seeking at least $10 million in damages. A class action lawsuit from 2022, consolidated in Georgia, involves multiple Holiday licensees who claim Holiday imposed unreasonable product requirements and received improper "kickbacks" from vendors. This action asserts breach of contract and violations of deceptive trade practices, seeking unquantified damages, and was appealed in January 2025. Additionally, Holiday is involved in other pending litigations, including cases against licensees for unpaid fees and damages stemming from terminated agreements, with three new cases commenced in early 2024. Numerous other cases have been concluded within the last three years, including settlements and dismissals in various disputes such as alleged data security breaches, renovation disputes, and breach of contract claims with franchisees.
Bankruptcy History
Vignette Collection has no bankruptcy history to disclose in its FDD, indicating that Holiday Hospitality Franchising, LLC and its key personnel have not been involved in any reportable bankruptcy proceedings.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Vignette Collection does not offer a provision for renewal or term extensions of its license agreement. If Holiday Hospitality Franchising, LLC agrees to re-license a hotel, the franchisee may be required to sign a new contract with terms and conditions that could be materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Holiday Hospitality Franchising, LLC provides extensive assistance to Vignette Collection franchisees. Before a hotel opens, Holiday offers construction and renovation guidance to ensure plans meet brand standards, along with a mandatory inspection to authorize opening. Franchisees gain access to IHG Merlin, an online platform providing operational documents, marketing tools, and training resources. For training, Holiday offers web-based and instructor-led programs for General Managers and key staff, covering systems like IHG Concerto and revenue management, with required certifications. After opening, ongoing support includes efforts to maintain high quality and service standards across all hotels, continuous training programs, and access to reservation services. Holiday also utilizes a "Services Contribution" fund for marketing, reservations, and other brand-strengthening activities. Franchisees receive consultation and advice on various aspects of operations, facilities, and marketing, and the franchisor communicates improvements and developments within the brand system. Additionally, Holiday employees conduct annual on-site consulting and training visits to each hotel, assisting with market analysis, revenue planning, and service strategies.
Initial Training Hours
513
Training Location
Virtual, Atlanta, Georgia or other designated regional locations
Ongoing Support
After opening, Vignette Collection franchisees receive ongoing support through various programs. Holiday Hospitality Franchising, LLC aims to maintain high standards of quality, cleanliness, appearance, and service across all Brand System hotels to promote and enhance the brand's reputation. Franchisees can access required and optional training programs at different locations, including Holiday's principal place of business. Consultation and advice are available for operational, facility, and marketing issues. Holiday communicates improvements and developments in the Brand System, including updates on reservation services, marketing operations, and administrative functions. Additionally, Holiday employees conduct annual on-site consulting and training visits to each hotel. During these visits, the General Manager, department heads, and designated staff collaboratively develop market analysis, revenue planning, sales planning, and service planning strategies and action plans. Franchisees are required to participate in these on-site consulting visits, and they must provide food, lodging, meeting accommodations, and equipment expenses for Holiday's employees.
Franchise Requirements
Ideal Candidate Profile
Vignette Collection seeks franchisees with strong management experience who can either directly manage the hotel's business or hire a qualified management company. The ideal candidate ensures direct management control over the hotel's operations at all times. Key management roles, including the General Manager, Food & Beverage Director/Manager, and Director of Sales, must have at least two years of prior experience in similar hotel brand segments. For hotel development, franchisees are expected to engage architects and interior design firms with demonstrated luxury hospitality experience, evidenced by a minimum of 3 to 5 completed projects in the past 5 years. Holiday Hospitality Franchising, LLC evaluates candidates based on their business skill, financial capacity, and personal character, which includes reviewing financial reports and credit history.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
Yes
Min Years Experience
2
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
The Vignette Collection franchise does not typically grant licenses for exclusive areas or territories. The license is granted for a specific site only, and franchisees will not receive an exclusive territory. Holiday Hospitality Franchising, LLC may, in its sole judgment, grant exclusive or protected areas in special circumstances where it will not license another Vignette Collection hotel. However, even in such cases, the license will still be for a specific site only and for the licensing of one hotel.
Staffing Notes
Vignette Collection requires franchisees to employ suitable and qualified individuals in numbers sufficient to staff all hotel positions in accordance with brand standards. The franchisee or its approved management company is the sole employer for hotel staff, responsible for all employment decisions. Key management positions, including the General Manager, Food & Beverage Director/Manager, and Director of Sales, must work exclusively for the franchisee's hotel and possess at least two years of prior experience in similar hotel brand segments. All new employees, including contract and temporary staff, must receive training on Employee Safety Devices within their first 14 days of employment. Furthermore, all General Managers, Department Heads, and employees are required to complete Brand Service Training Programs within 30 days of employment, with the franchisee covering associated travel and lodging expenses for trainees attending Holiday Hospitality Franchising, LLC's programs.