Cambria Hotels

The franchisor has initiated 106 litigation cases historically, far exceeding the typical range for this category. Can you provide a breakdown of the nature, resolution status, and financial impact of these cases, particularly those filed in the past 5 years?

Four litigation cases are currently pending, above the typical range. What are the specific claims in each pending case, the expected timeline for resolution, and potential financial exposure to the franchisor?

The monthly technology fee of $744 exceeds the typical range. What specific technology services and systems does this fee cover, and how is this fee benchmarked against other hotel franchises?

The transfer fee of $65,000 is significantly higher than typical. What is included in this transfer fee, and under what circumstances would a franchisee need to pay this amount?

The royalty rate of 6.0% is above the typical range of 5.0-5.5%. How does Cambria justify this higher rate compared to competitors, and is there any flexibility in negotiating this rate?

The franchise agreement contains no renewal options and automatically terminates after 20 years with no renewal rights. What happens to a franchisee's property and operations at the end of the initial 20-year term?

Territory is non-exclusive and provides no encroachment protection. Can the franchisor place another Cambria hotel within close proximity to an existing franchisee's location?

The transfer rate of 7.9% is notably high. Can you provide details on the 6 unit transfers in 2024, including reasons for transfer, who initiated the transfers, and whether franchisees were able to sell to their preferred buyers?

Four units were recorded as 'ceased other' in 2024 compared to 0-1 in prior years. What does 'ceased other' mean in your reporting, and why did this category increase significantly?

The agreement includes 19 termination causes, above the typical range. Can you provide the complete list of non-curable defaults that would result in immediate termination without opportunity to cure?

The termination clause allows only 10 days to cure non-payment and 30 days for other breaches. Have any franchisees been terminated for technical breaches that could have been cured with additional time, and how often is this termination clause invoked?

No non-compete covenant is included in the agreement. After a franchisee's agreement expires or is terminated, are there any restrictions preventing them from opening a competing hotel in the same market?

Item 19 financial performance data is available. What is the average gross revenue for Cambria franchisees, the percentage reporting positive cash flow, and how does performance vary by market type or property age?

The Investment Costs score of 0 is significantly below the typical range. What is the total initial investment required, and does Cambria provide financing, SBA loan guidance, or partnerships with lenders?

The Risk Factors score of 42 falls below the typical range. What specific operational or financial risks does the franchisor identify in Item 20 of the FDD?

Has the franchisor pursued any of the 106 litigation cases against franchisees, and if so, what were the typical claims (royalty disputes, non-compliance, trademark infringement)?

The pending arbitration is conducted in Maryland regardless of franchisee location. How often do franchisees find themselves in arbitration disputes, and what is the typical cost to defend an arbitration case?

Unit growth has been modest (2 net units in past year despite 76 current units). What is the franchisor's development pipeline, and are there specific markets or regions targeted for expansion?

The franchise fee is $60,000 with no information on other initial costs. What are the total estimated pre-opening costs including working capital, training, and brand standards compliance?

What protections exist if the franchisor terminates a franchisee's agreement or fails to renew after 20 years? Can franchisees continue operating as an independent hotel, and are there buyout provisions?