Days InnFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Days Inn franchise requires a total initial investment of $248K – $10.1M, including a $35K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 10.2% charge-off rate across 1,098 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $248K – $10.1M
- 15th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 1,201
- 52nd pct Lodging
- SBA default
- 10.2%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1992. Systems this mature have refined operations and brand recognition.
25 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $248K – $10.1M including a $35K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "ADR, Occupancy Rate, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 54/100. SBA loan charge-off rate of 10.2% across 1098 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 25 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Days Inns Worldwide, Inc.
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- DE
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- WSSI
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Days Inn franchisees operate budget-segment hotels, managing daily operations including front desk, housekeeping, maintenance, and guest services. Franchisees must maintain brand standards, comply with reservation systems tied to the parent Wyndham network, and pay 5.5% royalties on room revenue while managing labor, utilities, and property upkeep in a commoditized segment.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1991
- FDD year
- 2026
- States available
- 50
FDD Item 7 · 2026 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee)not refundable | $35K | $35K | |
| Photosnot refundable | $2K | $7K | |
| Training Tuitionnot refundable | $5K | $7K | |
| Training Expensesnot refundable | $3K | $6K | |
| Market Studynot refundable | $5K | $15K | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Utility Deposits and Related Feesnot refundable | $377K | $697K | |
| Facility Constructionnot refundable | $6.5M | $7.6M | |
| Construction Contingencynot refundable | $323K | $378K | |
| Computer Technology Systemsnot refundable | $62K | $64K | |
| Property Management Set-Up and Installationnot refundable | $6K | $22K | |
| Furniture, Fixtures and Equipmentnot refundable | $300K | $414K | |
| Signagenot refundable | $20K | $80K | |
| Opening Inventorynot refundable | $275K | $335K | |
| Insurancenot refundable | $23K | $80K | |
| Grand Opening Advertisingnot refundable | $3K | $15K | |
| Pre-Opening Wagesnot refundable | $83K | $149K | |
| Miscellaneous Non-Tangible Asset Costsnot refundable | $19K | $37K | |
| Additional Funds for 3 Month Initial Periodnot refundable | $118K | $184K | |
| Total initial investment | $8.1M | $10.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $248K – $10.1M
- Better than avg vs category
- Liquid capital req'd
- $118K – $188K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenues · typical 6–8%
- Ad fund
- 3.8%
- typical 3–5%
- Total fee load
- 9.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.8% of gross sales |
| Technology fee | $1K |
| Transfer fee | $35K |
| Renewal fee | $35K |
| Inventory (initial) | $275K – $335K |
| Total fee load | 9.3% of rev |
Financial Performance
This brand's FDD disclosed "ADR, Occupancy Rate, and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Days Inn Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,201
- Opened
- 39
- Last reporting year
- Closed
- 73
- Turnover rate
- 6.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.8%
- Net unit change last year
- 3-yr CAGR
- -4.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 39
- Closed (3yr)
- 73
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 51
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 40
- Franchisor's next-year forecast
- Transfer rate
- 4.3%
- Owners selling to other franchisees
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 6.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 1,098
- Loan volume
- $1.8B
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 10.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 89.8%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 228
- Defaults
- 84
Vintage analysis
Days Inn charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Days Inn's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 35-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Days Inn presents caution-level risk due to system contraction, active litigation on multiple fronts, absence of financial disclosure, and declining franchisee economics in a saturated budget hotel market.
Litigation (Item 3)
11 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $403
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 54 / 100 rating
- 01MINORDeclining unit count (-2.8% YoY) signals weakening franchisee performance and system contraction
- 02MINORMultiple class action lawsuits regarding marketing fees, price fixing, and consumer protection violations indicate regulatory and legal exposure
- 03MEDNo disclosed average revenue or net income (Item 19 absence) prevents ROI validation and suggests franchisor may be hiding underperformance data
- 04MINORWide investment range ($248K–$10.1M) with vague guidance creates opacity around capital requirements and scalability
- 05HIGHLitigation between franchisor and franchisees over breach of contract indicates franchise relationship deterioration and enforcement disputes
- 06MINORHigh royalty rate (5.5% of gross room revenue) on a declining brand reduces franchisee profitability in competitive budget hotel segment
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Negotiated |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 25 |
View Item 3 litigation summary
11 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- SynXis or OPERA
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis or OPERA
Item 20 · call current owners
Franchisee Contacts
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Days Inn · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Days Inn franchise?
The total investment to open a Days Inn franchise ranges from $248K – $10.1M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Days Inn franchise owners earn?
Days Inn does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Days Inn's franchise failure rate?
Based on SBA 7(a) loan data, Days Inn has a charge-off rate of 10.2% across 1,098 loans, meaning 10.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Days Inn franchise locations are there?
As of their most recent FDD filing, Days Inn has 1,201 total units in the United States, including 1,201 franchised units and 0 company-owned units. 39 new units were opened in the latest reporting year.
Is Days Inn a good franchise to buy?
FranchiseVerdict rates Days Inn as a B-grade franchise with a risk score of 54 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.