Require an investment-period comparison against a credible independent case. A higher room-revenue forecast is insufficient unless the genuinely additional contribution pays for recurring obligations, required works, disruption and the cost of exit.
- [ ] Obtain the current disclosure document where franchised, amendments, proposed agreements and property-specific improvement requirements.
- [ ] Separate royalties, programme charges, loyalty, reservations, technology and other compulsory charges; identify inclusions to prevent double counting.
- [ ] Separate incremental demand from existing bookings changing channels and business displacing higher-contribution demand.
- [ ] Identify which costs disappear from the independent case and when; existing software or marketing commitments may continue during transition.
- [ ] Price capital works and room closures, then fund the monthly transition and ramp-up cash requirement.
- [ ] Test data access, guest relationship control, operating restrictions, renewal, transfer and termination.
The published 2026 Autograph and Curio FDDs provide primary evidence of disclosed standard structures; neither replaces the delivered documents and offer applicable to a particular hotel. Marriott — Autograph Collection FDD, March 31, 2026; Hilton — Curio Collection FDD, March 30, 2026.
Illustration, not a quoted brand outcome: additional annual costs of $180,000 divided by a 60% contribution margin on genuinely incremental revenue require $300,000 of additional revenue to cover those annual costs. This does not recover an initial capital investment; model that separately and avoid treating annual break-even as full investment payback.
Franchise timing also affects the decision calendar. The FTC’s guide describes the federal requirement to receive the FDD at least 14 days before signing or paying the franchisor or its affiliate; obtain legal advice on applicability and any additional requirements. FTC — A Consumer’s Guide to Buying a Franchise.
Stage output: an independent-versus-affiliated cash comparison, an explicit additional-demand requirement and a list of contractual and capital conditions. Keep operator choice separate from brand choice.