Verified — real FDD extraction
Not found in the SBA Franchise Directory — SBA financing may be unavailable; verify with your lender
CLARION HOTEL
Other · independent · est. —
Clarion Hotel is a midscale hotel brand from Choice Hotels, often featuring meeting space and on-site dining. A franchisee owns and operates a hotel property under the Clarion flag, serving business and leisure travelers.
CLARION HOTEL net unit count declined -18.4% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
17.3%
fiscal 2025, per Item 20
Cost to open
$326K–$3.1M
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 19 of 110 franchised outlets left the system — a 17.3% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 124 | 114 | 110 |
| Opened | 3 | 8 | 2 |
| Transfers | 16 | 5 | 6 |
| Terminations | 1 | 0 | 1 |
| Non-renewals | 1 | 2 | 2 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 11 | 10 | 16 |
| Outlets at end | 114 | 110 | 93 |
| Net change | -10 | -4 | -17 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $45K franchise fee (Item 5) and a total investment of $326K–$3.1M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$326K–$3.1M
all-in investment range
Franchise fee (Item 5)
$45K
upfront, one-time
Royalty (Item 6)
5.5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$55K
5.5% of sales, before profit
Over a 10-yr term
$550K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for CLARION HOTEL with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for CLARION HOTEL. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing CLARION HOTEL's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →CLARION HOTEL franchise questions, answered from the filings
What percentage of CLARION HOTEL franchises closed last year?
In CLARION HOTEL's latest FDD Item 20 (fiscal 2025), 19 of 110 franchised outlets left the system — an annualized exit rate of 17.3%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a CLARION HOTEL franchise cost?
Per CLARION HOTEL's 2026 FDD, buying in requires an initial franchise fee of $45K (Item 5) and a total initial investment of $326K–$3.1M (Item 7).
What royalty does CLARION HOTEL charge?
CLARION HOTEL charges an ongoing royalty of 5.5% of gross sales, per Item 6 of its 2026 FDD.
Does CLARION HOTEL disclose earnings (Item 19)?
Yes — CLARION HOTEL makes a financial performance representation in Item 19 of its 2026 FDD. Read it closely: franchisors choose which units and which metrics to include.