Holiday Inn

The transfer fee of $65,000 significantly exceeds the typical range for hospitality franchises ($12,500-$50,000). What specific services or approvals justify this premium fee, and is it negotiable?

With 4 cases currently pending and 8 cases filed in the past 3 years, can you provide details on the nature of these 4 pending cases and their potential impact on franchisees?

The franchisor was defendant in 15 cases over the litigation history. What were the primary claims in these cases, and have any resulted in settlements affecting franchisee obligations?

Unit closures have increased from 8 in 2022 to 17 in 2024. What factors are driving this increase, and how does this trend compare to industry closures for comparable hotel brands?

The franchise agreement offers zero renewal options after the 20-year initial term. What happens to franchisees at the end of the term, and are there any negotiations possible for renewal rights?

Territory is explicitly non-exclusive with no encroachment protection. How does the franchisor manage territorial placement of new units, and can existing franchisees negotiate exclusivity?

The termination clause allows Holiday Inn to terminate for cause with no specified minimum cure period for most defaults. What specific defaults are subject to immediate termination without cure opportunity?

Personal guarantees are required from all shareholders, partners, and members. Does this requirement apply equally to all ownership structures, and are there exemptions for passive investors?

The indemnification clause requires franchisees to cover franchisor liabilities in certain circumstances. Can you provide the specific scope of what franchisees must indemnify the franchisor for?

With a 1.5% termination rate in the past year, can you identify the primary reasons franchisees are being terminated and whether these are performance-related or operational violations?

The non-renewal rate stands at 1.7% annually. Of the units not renewing, what percentage voluntarily exit versus units that failed to meet renewal requirements?

Has the franchisor initiated the 7 plaintiff cases against franchisees, vendors, or other parties? What were the outcomes, and do any establish precedents affecting current franchisees?

Investment Costs score 0/100, significantly below the typical range. What up-front capital investment is required beyond the $65,000 franchise fee, and how is this calculated?

The Risk Factors score of 39 is below typical range. What specific risk factors are driving this low score, and how do they compare to competitor brands in your category?

The Territory score of 35 is significantly below typical range. Beyond the lack of exclusivity, what specific territory management issues are contributing to this low score?

Transfers account for 29 units in 2024—the largest exit category. Does the franchisor participate in approving or facilitating these transfers, or are they owner-to-owner sales?

The 'Ceased Other' category accounts for 9 units in both 2023 and 2024. What circumstances are classified as 'ceased other,' and do they indicate distress situations?

Can you provide a breakdown of the 22 total litigation cases by type (e.g., contract disputes, operational issues, financial claims, regulatory matters)?

With renewal conditions count at 0 versus typical range of 4.0-7.0, what specific operational or financial standards must franchisees meet to remain in good standing during their 20-year term?

The average Hotel has Item 19 disclosure available—can you provide the specific Item 19 document showing unit-level financial performance for comparable Holiday Inn properties in similar markets?