Companies

Smoothie King operates a substantial 1,200-unit system with a moderate investment range of $329,850 to $1,278,900, though the high-end cost is significant. ✓ The brand shows healthy net growth, opening 81 outlets last year against 30 closures, and discloses a solid average unit volume of $662,015. ⚠ However, the presence of litigation is a notable red flag that prospective franchisees should investigate thoroughly. Overall, the franchise offers a proven concept with strong unit economics but carries legal risk that warrants careful due diligence.

Aaron's operates a massive network of 1,183 outlets, demonstrating significant scale in the lease-to-own market. The total investment range of $307,170 to $837,975 is substantial, though the $35,000 franchise fee is moderate. ⚠ A major red flag is the absence of Item 19 financial performance data, making it impossible to assess unit-level profitability, and the presence of litigation adds further risk. ✓ The growth trajectory is positive, with 9 net new outlets opened last year against only 1 closure, indicating stable expansion.

Marco's Pizza operates a substantial network of 1,159 outlets, demonstrating significant scale in the pizza segment. ✓ The franchise requires a moderate total investment of $286,727 to $807,152 with a $63,000 fee, and discloses a healthy average unit volume of $934,318. ⚠ While net unit growth was positive with 68 openings against 25 closures, the presence of litigation is a notable risk factor. ✓ The 5.5% royalty is competitive, and the absence of bankruptcy history provides some financial stability.

TAKE 5 demonstrates exceptional operational stability with a massive 1,142-unit system and an impressive net growth of 109 outlets last year, reflecting a 99.9% retention rate. ✓ The brand’s average unit volume of $1.38 million is strong, though the total investment range of $287K to over $2M is unusually wide, suggesting significant variability in build-out costs. ✓ The absence of litigation and bankruptcy filings further supports a clean operational history. ⚠ However, the lack of a stated royalty fee is atypical and may indicate that revenue is generated through other means, such as product or service markups, which prospective franchisees should clarify.

Blutaco Franchising operates a massive network of 1,131 outlets, demonstrating significant scale and brand penetration. The franchise offers a highly accessible entry point with a $0 franchise fee and a wide investment range of $9,000 to $349,000, though the absence of a royalty fee and Item 19 financial disclosure is a notable ⚠ red flag, as it prevents prospective franchisees from evaluating unit-level profitability. Growth appears healthy, with 32 new outlets opened against only 3 closures in the last year, indicating strong net expansion and low attrition. However, the lack of any financial performance representation is a critical ⚠ risk, making it impossible to assess the true earning potential of this low-cost, high-volume opportunity.

Papa Murphy's International LLC operates 1,127 outlets with a moderate franchise fee of $25,000 and a total investment range of $367,428 to $733,124. ✓ The brand provides Item 19 financial disclosure, reporting an average unit volume (AUV) of $688,133, and has no litigation or bankruptcy history. ⚠ However, the system faces a severe contraction, with only 8 outlets opened last year versus 126 closures, signaling significant operational or market challenges. This negative net growth of -118 units raises major concerns about franchisee profitability and brand viability.

Goosehead Insurance Agency operates a large network of 1,115 outlets, but its growth trajectory is deeply concerning, with 220 outlets closing last year against only 97 openings. ✓ The franchise offers a disclosed Item 19, providing some financial transparency for prospective franchisees. ⚠ However, the 20% royalty is exceptionally high, and the total investment range of $4 million to $1.1 million is substantial, while the presence of litigation adds further risk. This combination of high costs, negative net unit growth, and legal issues signals significant operational and financial challenges.

HARRIS RESEARCH INC operates a large network of 1,099 outlets with a relatively low franchise fee of $18,000 and a moderate total investment range of $74,150 to $249,500. ✓ The system reports a healthy average unit volume (AUV) of $218,400, suggesting solid revenue potential for franchisees. ⚠ However, a massive net loss of 185 outlets (14 opened vs. 199 closed) in the last year signals severe systemic churn and operational distress. ⚠ The presence of litigation further compounds the risk, making this a high-warning opportunity despite the scale and low entry cost.

Crumbl operates a massive network of 1,059 outlets, demonstrating significant scale and rapid growth with 100 net new openings last year against only 12 closures. ✓ The brand's average unit volume (AUV) of $1.35 million is strong, though the total investment range of $816k to $1.44M is substantial and the 8% royalty is on the higher side. ⚠ Prospective franchisees should note the presence of litigation, which is a notable risk factor to investigate further. Overall, Crumbl offers a high-revenue opportunity with proven unit economics, but the high entry cost and legal disclosures warrant careful due diligence.

Carl's Jr. Restaurants LLC operates a large system of 1,032 outlets, but its growth trajectory is deeply concerning with 39 closures versus only 7 openings last year. ✓ The brand offers a disclosed average unit volume (AUV) of $1,373,117, providing a clear financial benchmark for prospective franchisees. ⚠ However, the total investment range of $1,486,000 to $3,176,500 is substantial, and the net loss of 32 units signals significant system contraction and potential market saturation. This negative net growth, despite no litigation or bankruptcy history, suggests a struggling franchise model that requires careful scrutiny of unit-level profitability and local market demand.

BFT operates a massive network of 1,029 outlets, demonstrating significant scale in the fitness sector. ✓ The franchise shows explosive growth with 166 new openings against only 5 closures last year, indicating strong system health and demand. ✓ The Item 19 disclosure reveals a robust average unit volume (AUV) of $984,270, though this is offset by a high total investment range of $385,048 to $839,058 and an 8.0% royalty fee. ⚠ The substantial $227,500 franchise fee represents a steep entry cost, but the absence of litigation or bankruptcy filings provides a clean operational record.

Massage Envy operates a massive network of 1,009 outlets, but its growth trajectory is deeply concerning with only 1 new outlet opened versus 46 closures in the last year. ✓ The brand offers a relatively moderate total investment range of $605,850 to $1,081,000 and discloses a healthy average unit volume of $1,137,964. ⚠ However, the severe net loss of 45 units signals significant system-wide churn and potential market saturation. ⚠ The 6.0% royalty and $45,000 franchise fee are standard, but the alarming closure rate far outweighs any expansion, making this a high-risk opportunity despite the absence of litigation or bankruptcy.

Midas operates a large network of 1,000 outlets, but its growth trajectory is deeply concerning, with 86 closures last year against only 33 openings, signaling significant systemic shrinkage. The total investment range of $366,650 to $940,050 is substantial, yet the franchise does not provide Item 19 financial performance data, leaving prospective franchisees without critical earnings benchmarks. ⚠ The presence of litigation and the absence of a stated royalty fee structure add further uncertainty to the financial model. ✓ The brand's established scale offers some recognition, but the net loss of 53 outlets and lack of financial disclosure present major risks for new investors.

Beef 'O' Brady's operates a substantial network of 998 outlets, demonstrating significant scale in the casual dining segment. ✓ The franchise offers a relatively low entry point with a $25,000 fee and a 5% royalty, though the total investment range is unusually broad, spanning from $81,525 to over $14.5 million, which may indicate significant variability in unit types or potential data errors. ⚠ Growth is minimal, with only 5 net new outlets opened last year against 3 closures, suggesting a mature or stagnant system. ✓ The absence of litigation and bankruptcy, combined with a disclosed average unit volume of $2.7 million, provides a stable financial baseline for prospective franchisees.

The Joint Chiropractic operates a massive network of 970 outlets, demonstrating significant scale in the chiropractic franchise space. ✓ The brand shows strong growth with 104 net new openings last year against only 15 closures, and a healthy average unit volume of $574,304 provides a clear financial benchmark for prospective franchisees. ⚠ However, the total investment range of $245,250 to $577,800 is substantial, and the 7.0% royalty fee is a notable ongoing cost that will directly impact unit-level profitability. ✓ The absence of litigation or bankruptcy filings suggests a clean legal and financial history, which is a positive sign for the brand's stability.

Zaxbys demonstrates strong unit economics with a reported average unit volume of $2.78 million, significantly above industry averages, and a relatively low 6% royalty fee. ✓ The chain shows healthy net growth, opening 37 new outlets against only 7 closures last year, indicating solid franchisee retention and demand. ⚠ However, the total investment range of $1.45 million to $3.81 million is substantial, and the $0 franchise fee may be a promotional incentive that could change. Overall, Zaxbys presents a compelling opportunity in the quick-service chicken segment, supported by scale and positive growth trajectory.

Baskin-Robbins operates a large, established network of 967 outlets, offering a relatively accessible entry point with a franchise fee of $28,300 and a total investment ranging from $307,400 to $626,700. ✓ The brand provides financial disclosure with an average unit volume (AUV) of $532,682, and it has no litigation or bankruptcy history, indicating a stable corporate environment. ⚠ However, the growth trajectory is nearly flat, with 32 openings against 28 closures in the last year, suggesting market saturation or unit-level challenges. The 5.9% royalty fee is moderate, but the high closure rate relative to openings warrants caution for prospective franchisees.

Regus operates a massive network of 962 outlets, offering a relatively accessible entry point with a $20,000 franchise fee and a total investment ranging from $720,500 to $1,562,500. ✓ The brand demonstrates strong stability with zero closures last year and a disclosed average unit volume of $677,000, providing clear financial performance data. ⚠ However, growth is extremely slow with only 6 new outlets opened, and a past bankruptcy filing represents a significant historical red flag for prospective franchisees. The combination of a large, stable base and minimal expansion suggests a mature, low-growth opportunity with a notable risk in its corporate history.

Buildingstars of NY operates a massive network of 929 outlets, with a very low franchise fee of $995 and a total investment range starting at just $2,295, making it highly accessible. ✓ The system demonstrated strong recent growth, adding 200 new outlets last year, though the 81 closures signal notable churn that warrants scrutiny. ⚠ A significant red flag is the absence of Item 19 financial performance data, leaving prospective franchisees without validated earnings expectations. ✓ The absence of litigation and bankruptcy history provides some stability, but the low barrier to entry and high closure rate suggest a high-volume, low-cost model with potential unit-level volatility.

Chester’s operates a massive 918-unit system, but its growth trajectory is deeply concerning, with 151 closures last year against only 120 openings, signaling net contraction. ✓ The franchise fee is low at $2,000 and there is no royalty, which reduces ongoing costs, but the total investment range of $15,500 to $306,500 is unusually wide, suggesting significant variability in unit types. ⚠ A major red flag is the absence of Item 19 financial performance data, leaving franchisees without critical earnings projections to assess viability. While there is no litigation or bankruptcy history, the negative unit growth and lack of financial disclosure make this a high-risk opportunity requiring extreme caution.

Cost Cutters operates a large network of 911 outlets, but this figure masks a catastrophic net loss of 1,705 locations last year (5 opened vs. 1,710 closed), signaling a severe systemic decline. The franchise fee is $41,500 with a 4.0% royalty and a total investment range of $184,440 to $336,340. ⚠ The absence of Item 19 financial performance data prevents validation of unit economics, which is a critical concern given the massive closures. ✓ The franchise has no litigation or bankruptcy history, but the extreme contraction rate makes this a high-risk opportunity.

HomeVestors operates 888 outlets with a moderate initial investment range of $107,500 to $477,250 and a franchise fee of $42,500. ✓ The system reports a healthy average unit volume of $574,215, providing a clear financial benchmark for prospective franchisees. ⚠ However, a significant red flag emerges from the growth trajectory, as the brand closed 153 outlets last year while opening only 33, resulting in a net loss of 120 units. ⚠ Additionally, the presence of litigation further elevates risk, suggesting potential systemic issues within the franchise network.

Church's Chicken operates 885 units with a moderate entry cost of $20,000 franchise fee and total investment ranging from $609,725 to $1,886,300. ✓ The brand shows stable scale with a 5% royalty fee and provides Item 19 financial disclosure, offering transparency for prospective franchisees. ⚠ However, the growth trajectory is flat, with 21 outlets opened and 21 closed in the last year, indicating no net expansion. ⚠ Additionally, the presence of litigation is a notable risk factor that warrants careful due diligence.

La Quinta operates a large system of 884 outlets, but its growth trajectory is concerning with 29 closures versus only 14 openings last year, indicating a net contraction. ✓ The brand offers a relatively accessible franchise fee of $67,850, though the total investment range of $4.3 million to $17.2 million is substantial and varies widely by property type. ⚠ The absence of a stated royalty fee is unusual and may be structured differently, but the lack of litigation or bankruptcy history provides some stability. Overall, the declining unit count and high capital requirement present significant risks for prospective franchisees.

Bojangles presents a compelling franchise opportunity with a strong scale of 867 outlets and a healthy growth trajectory, having opened 31 units while closing only 3 last year. ✓ The brand's average unit volume of $1,928,486 is robust, though the total investment range of $780,780 to $3,951,200 is substantial and requires significant capital. ⚠ Prospective franchisees should note the presence of litigation in the disclosure, which warrants careful review. Overall, Bojangles offers a proven model with solid financials, but the high entry cost and legal risks demand thorough due diligence.

Scooter's Coffee, LLC demonstrates strong growth with 121 net new outlets opened last year against only 25 closures, bringing total units to 849. ✓ The zero franchise fee and average unit volume of $914,719 are attractive positives, though the total investment range of $692,150 to $1,523,400 is substantial. ⚠ The 6% royalty is standard, but the presence of litigation is a notable risk factor to investigate. Overall, the brand shows healthy expansion and solid unit economics, tempered by legal concerns.

Mac Tools operates a large network of 832 outlets with a moderate initial investment range of $123,325 to $418,385 and no ongoing royalty, which is a positive for franchisee cash flow. ✓ The brand shows strong sales performance with an average unit volume of $290,728 and robust recent growth, opening 111 new outlets last year. ⚠ However, a significant red flag is the high closure rate of 101 outlets in the same period, indicating potential churn or unit-level struggles. ⚠ Additionally, the presence of litigation adds a layer of risk that prospective franchisees should investigate carefully.

Charleys operates a substantial network of 826 outlets, with a moderate entry cost starting at a $24,500 franchise fee and total investment ranging from $202,690 to over $1 million. ✓ The brand provides financial disclosure with an average unit volume (AUV) of $845,372, indicating a solid revenue baseline for franchisees. ⚠ However, the growth trajectory is concerning, as the system added 45 new outlets last year but also saw 23 closures, resulting in a net gain of only 22 units and a closure rate of roughly 2.8% of the total network. ✓ There are no litigation or bankruptcy issues, which is a positive sign for stability, though the high closure count relative to openings warrants caution for prospective investors.

HK Heycha Limited operates 820 total outlets but faces a severe contraction, with 115 closures last year against only 58 openings, signaling a net decline of 57 units. ⚠ The absence of Item 19 financial disclosure is a critical red flag, leaving franchisees without validated revenue or profitability data to assess the model. ✓ The $50,000 franchise fee and 3.0% royalty are moderate, though the total investment range of $295,100 to $507,100 is substantial for a brand in retraction. ✓ No litigation or bankruptcy history provides some stability, but the rapid store closures and lack of financial transparency make this a high-risk opportunity.

Cornwell Quality Tools operates a large network of 811 outlets with no franchise fee or royalty, which is unusual and may indicate a different business model than traditional franchising. However, the absence of Item 19 financial disclosure is a significant ⚠ red flag, as it prevents prospective franchisees from evaluating potential earnings or performance. The total investment range of $79,380 to $325,680 is moderate, but the presence of litigation ⚠ adds further uncertainty to the opportunity. Without data on recent outlet openings or closures, it is impossible to assess growth trajectory or system stability.

Qdoba operates 777 outlets with a franchise fee of $40,000 and a total investment range of $545,500 to $1,294,000, positioning it as a mid-to-high-cost opportunity in the fast-casual space. ✓ The brand discloses an average unit volume (AUV) of $1,643,653, indicating strong revenue potential for franchisees. ⚠ However, the presence of litigation and a net growth of only 39 outlets (57 opened vs. 18 closed last year) suggest operational or legal challenges that may temper expansion momentum. ✓ No bankruptcy history provides some financial stability, but the modest net growth rate warrants caution for prospective investors.

Omari operates a massive network of 773 outlets with a very low entry point of a $500 franchise fee and a total investment range starting at just $3,250, making it highly accessible. The brand shows strong positive momentum, having opened 56 new locations last year against 25 closures, indicating healthy net growth. ⚠ However, the absence of Item 19 financial performance data is a significant transparency concern, and the presence of litigation adds a layer of risk for prospective franchisees.

Keller Williams operates a massive network of 773 outlets, but its growth trajectory is deeply concerning with 33 closures last year against only 11 openings, signaling significant net contraction. The total investment range of $183,647 to $336,495 is moderate for a real estate franchise, though the $36,447 franchise fee and 6% royalty are standard. ⚠ A major red flag is the absence of Item 19 financial performance data, leaving franchisees without crucial earnings projections, compounded by active litigation that raises governance and operational risks. ✓ On the positive side, the brand's scale provides strong name recognition, but the negative net unit growth and lack of financial disclosure make this a high-risk opportunity.

F45 Training operates 753 outlets with a high franchise fee of $60,000 and total investment ranging from $349,200 to $786,100. ✓ The brand provides financial disclosure with an average unit volume (AUV) of $454,320, offering a benchmark for potential performance. ⚠ However, a significant red flag emerges from its growth trajectory, as 72 outlets closed last year versus only 34 opened, indicating a net contraction. ⚠ Additionally, the presence of litigation further elevates risk, suggesting systemic operational or financial challenges within the system.

OLM operates a massive 752-unit network but faces a severe contraction, with 64 closures last year against only 7 openings, signaling a net loss of 57 outlets. The franchise offers a $0 franchise fee and no royalty, yet the total investment range of $63 million to $173 million is extraordinarily high, likely reflecting real estate or large-scale infrastructure costs. ⚠ The absence of Item 19 financial performance data is a critical red flag, as it prevents validation of unit economics or profitability. ✓ No litigation or bankruptcy history provides some stability, but the rapid shrinkage and opaque financials make this a high-risk opportunity.

Wireless Zone operates a large network of 745 outlets, with a low $1,000 franchise fee but a steep 22% royalty that significantly pressures margins against a total investment ranging from $201,875 to $532,600. ✓ The brand shows positive net growth, having opened 42 new locations last year while closing 17, indicating expansion momentum. ⚠ However, the presence of litigation is a notable red flag, and the high royalty rate demands careful financial scrutiny for prospective franchisees.

EOS operates a substantial network of 738 outlets with a low franchise fee of $5,000 and no ongoing royalty, making it an accessible entry point for investors. ✓ The system shows strong revenue potential, with an average unit volume (AUV) of $392,658, and has no history of litigation or bankruptcy. ⚠ However, the growth trajectory is concerning, as the company opened 75 new outlets last year but also closed 69, indicating significant churn and potential unit-level instability. This high closure rate relative to openings warrants caution despite the low upfront costs and solid financial disclosure.

Batteries Plus operates a substantial 737-unit network with a relatively high franchise fee of $152,968 and a total investment range of $262,646 to $496,996. ✓ The brand provides Item 19 financial disclosure, reporting an average unit volume (AUV) of $935,755, which suggests strong revenue potential for franchisees. ⚠ However, the growth trajectory is concerning, with only 30 outlets opened versus 28 closed last year, indicating near-zero net growth. ⚠ Additionally, the presence of litigation is a notable red flag that warrants further investigation into potential operational or legal challenges.

Smile Source L.P. operates a massive network of 734 outlets, demonstrating significant scale in the dental franchise space. ✓ The franchise fee is $0 and the royalty is a low 1.43%, but the total investment range of $27,800 to $435,000 is extremely wide, suggesting a highly variable business model. ⚠ The absence of Item 19 financial performance data is a major red flag, preventing any assessment of unit profitability. ✓ Growth appears strong with 179 openings versus 68 closures last year, though the closure rate is notable for a low-cost franchise.

Sola Franchise, LLC operates a substantial network of 729 outlets, demonstrating significant scale in its segment. The franchise requires a high total investment ranging from $924,021 to $1,957,824 with a $55,000 franchise fee, though notably there is no ongoing royalty. ✓ Growth is positive, with 33 new outlets opened against only 2 closures in the last year, indicating strong unit economics and demand. ⚠ Prospective franchisees should carefully evaluate the high capital requirement and ensure they have access to the necessary financing, though the absence of litigation and bankruptcy provides some reassurance.

HOTWORX has demonstrated strong unit growth, opening 143 net new outlets last year to reach 719 total, with a very low closure rate of just 5. ✓ The brand’s total investment range of $901,440 to $2,528,200 is substantial, though the absence of a royalty fee is a notable positive for franchisee cash flow. ⚠ However, the presence of litigation in the disclosure is a red flag that warrants careful review. Overall, the concept shows rapid expansion and low attrition, but the high capital requirement and legal risks temper the outlook.

Meineke operates a substantial network of 716 outlets, with a moderate franchise fee of $45,195 and a wide total investment range of $224,898 to $1,200,818. ✓ The brand provides Item 19 financial disclosure, reporting an average unit volume (AUV) of $971,221, and has no litigation or bankruptcy history. ⚠ However, the growth trajectory is concerning, as the system added 36 new outlets last year but also saw 22 closures, indicating significant churn. This net gain of only 14 units suggests potential operational or profitability challenges that prospective franchisees should investigate further.

FASTSIGNS demonstrates strong unit economics with a reported average unit volume (AUV) of $1,111,020, which is a significant positive ✓ for prospective franchisees. The system shows healthy net growth, opening 20 outlets while only closing 4 last year, indicating solid demand and operational stability. However, the total investment range of $248,083 to $344,624 is substantial, and the $49,750 franchise fee is a notable upfront cost. The absence of litigation and bankruptcy history ✓ further supports the brand's clean operational record.

UBIF Franchising Co operates a substantial network of 682 outlets, but its growth trajectory is concerning with 21 closures against only 15 openings last year, indicating a net contraction. ✓ The relatively low average unit volume of $60,414 and moderate total investment range of $151,350 to $448,150 may appeal to cost-conscious investors. ⚠ However, the 7% royalty fee on modest revenues, combined with a $25,000 franchise fee and the presence of litigation, raises caution. ⚠ The net unit decline and legal issues suggest potential operational or market challenges that prospective franchisees should scrutinize carefully.

Sign*A*Rama Inc. operates a large network of 680 outlets, with a moderate franchise fee of $49,500 and a total investment range of $120,205 to $339,971. ✓ The brand provides Item 19 financial disclosure, reporting an average unit volume (AUV) of $846,534, which suggests strong revenue potential for franchisees. ⚠ However, the system shows a near-flat growth trajectory, opening 27 outlets but closing 24 last year, and the presence of litigation is a notable red flag. Overall, while the AUV is attractive, the high closure rate and legal issues warrant caution.

Outback Steakhouse of Florida, LLC operates a massive 675-unit system but shows zero net growth, with 4 closures and no new openings in the last year. ⚠ The absence of Item 19 financial performance data and the presence of litigation are notable red flags for prospective franchisees. ✓ The brand benefits from strong national recognition, though the total investment range of $4.26M to $9.04M positions it as a high-cost opportunity. ⚠ The stagnant unit count and lack of financial disclosure suggest limited expansion momentum and transparency.

Tim Hortons operates 669 outlets with a moderate franchise fee of $25,000 and a royalty of 4.5%, though the total investment range is exceptionally wide at $60,150 to $3,312,500, indicating significant variability in unit types. ✓ The brand shows positive net growth with 42 openings versus 13 closures last year, and an average unit volume of $107,845 provides a useful benchmark for prospective franchisees. ⚠ However, the presence of litigation is a notable red flag, and the low AUV relative to the high-end investment cost suggests careful financial scrutiny is essential before committing.

LAWN DOCTOR, INC. operates a large, established network of 653 outlets with strong unit economics, as evidenced by a reported average unit volume (AUV) of $1,130,477. ✓ The franchise requires a significant total investment of $150,070 to $177,052, including a $123,950 franchise fee and a 10% royalty, which is a high ongoing cost. ✓ Growth is positive, with 24 outlets opened versus only 1 closure in the last year, indicating strong system health and demand. ⚠ The high initial investment and royalty rate are key considerations, though the absence of litigation or bankruptcy filings is a clear positive.

Home Instead operates a substantial network of 625 senior care franchises, with a relatively high average unit volume of $2.6 million that justifies the moderate $54,000 franchise fee and total investment range of $91,040 to $269,750. ✓ The brand demonstrates stability with a net positive unit growth of 3 outlets last year (17 opened vs. 14 closed), though the closure count warrants monitoring. ⚠ A key risk factor is the presence of litigation, which requires due diligence to assess the nature and potential impact on franchisee operations. Overall, this is a mature, high-revenue system with manageable costs, but the litigation history and modest growth rate temper its investment appeal.

Red Roof Inn operates a substantial 623-unit system, with a wide total investment range of $259,000 to over $14.8 million reflecting diverse property types. ✓ The brand shows net positive growth, opening 37 outlets last year against 26 closures, and provides Item 19 financial performance data. ⚠ However, significant red flags include both litigation and bankruptcy history, which warrant careful due diligence. The $27,000 franchise fee and 5.0% royalty are standard for the economy lodging segment.