Days Inn Franchise Cost, Revenue & Review 2026
- Investment
- $248K – $3.6M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 10.2%
- on 1,098 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Days Inn is a Wyndham budget-hotel franchise of value roadside properties. Franchisees own and operate individual hotels, running guest services and maintenance on the Wyndham reservation and loyalty network.
FranchiseVerdict summary · 2026
A Days Inn franchise requires a total initial investment of $248K – $3.6M, including a $35K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 10.2% charge-off rate across 1,098 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $248K – $3.6M
- 13th pct Lodging
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 1,201
- 71st pct Lodging
- SBA charge-off
- 10.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $248K – $3.6M including a $35K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better). SBA loan charge-off rate of 10.2% across 1098 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -34 franchised outlets in the latest year (39 opened, 73 closed); 61 signed but not yet open (Item 20).
- LEGAL20 litigation matters disclosed in Item 3, higher than typical. Of the 12 listed on this page, 9 name the franchisor itself, 3 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Days Inns Worldwide, Inc.
- Parent company
- Wyndham Hotel Group, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Incorporated in
- DE
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Not specified in extracted text (consolidated WHR financials in Exhibit D)
- 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).
Same owner · FDD Item 1, page 9
16 other brands on this site name Wyndham Hotels & Resorts, Inc. as parent or ultimate parent in their own FDD.
- AmericInnA
- Arise Suites Extended Stay by WyndhamC
- Baymont Inn & SuitesA
- Dazzler SelectC
- ECHO Suites Extended Stay by WyndhamB
- Hawthorn Extended Stay by WyndhamA
- La Quinta by WyndhamA
- Microtel Inn & Suites by WyndhamB
- RamadaC
- Registry Collection HotelsC
- TRYP by WyndhamB
- Trademark Collection by WyndhamA
- WaterWalk Extended Stay by WyndhamB
- Wingate by WyndhamB
- Wyndham GardenB
- Wyndham GrandB
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1991
- FDD year
- 2026
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 78% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
published investment is a conversion of an existing property. The same filing prices new construction separately at $8,128,742-$10,088,760.
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee) | $35K | $35K | |
| Photos | $2K | $7K | |
| Training Tuition | $3K | $7K | |
| Training Expenses | $1K | $4K | |
| Temporary Signage | $0 | $1K | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $0 | $130K | |
| Facility Improvements | $0 | $2.0M | |
| Conversion Contingency | $0 | $99K | |
| Technology Systems | $2K | $72K | |
| Property Management Set-Up and Installation | $6K | $22K | |
| Furniture, Fixtures and Equipment | $17K | $522K | |
| Signage | $20K | $80K | |
| Opening Inventory | $7K | $374K | |
| Insurance | $23K | $65K | |
| Grand Opening Advertising | $3K | $15K | |
| Miscellaneous Non-Tangible Asset Costs | $7K | $23K | |
| Additional Funds for 3 Month Initial Period | $123K | $188K | |
| Total initial investment | $248K | $3.6M |
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 – $3.6M
- Top 40% of category vs category
- Liquid capital req'd
- $118K – $188K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.5%
- 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 |
| Training fee | $5K |
| Transfer fee | $35K |
| Renewal fee | $35K |
| Inventory (initial) | $275K – $335K |
| Total fee load | 9.3% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Days Inn is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Days Inn unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
An occupancy metric, not unit revenue
- Item 19 type
- RevPAR/ADR/Occupancy (no gross sales dollar figures disclosed)
- Sample size
- 498
- vs category median 98 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.3% (near the Lodging median).
Disclosure
Item 19 reports hotel occupancy metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -4.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Days Inn Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,201
- Opened
- 39
- Last reporting year
- Closed
- 73
- Terminated
- 5
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 6.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.5%
- Net unit change over 3 years
- 3-yr CAGR
- -4.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 5
- Signed, not yet open
- 61
- 0.05 per open outlet · Item 20 Table 5
- 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 12 · 50 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
50
states with franchisees (per FDD Item 12)
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%
- on 1,098 loans · 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
- Typical loan rate
- 6.1%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand above franchise avg ↑
- Jobs supported
- 8,923
- 0.5 per loan
- Lender concentration
- 6%
- top lender's share
Borrower mix: 22% went to startups / new businesses, 78% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Vintage analysis
Days Inn charge-off rate by loan vintage
Top lenders financing Days Inn franchisees
Showing 3 of 228 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Days Inn from SBA 7(a) FOIA data.
- Principal loss rate
- 3.6%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.07%
- Avg chargeoff amount
- $776K
- Lender concentration
- 6.4%
- Job velocity
- 0.5 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 8,923
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Western SBLC, Inc | 70 | $87.4M | 3.4% |
| 2 | GBank | 56 | $126.6M | 0.0% |
| 3 | Business Loan Center, LLC | 50 | $54.9M | 32.0% |
| 4 | Wells Fargo Bank National Association | 46 | $52.6M | 21.7% |
| 5 | Readycap Lending, LLC | 34 | $49.8M | 10.7% |
| 6 | Bank of Hope | 29 | $57.9M | 0.0% |
| 7 | PromiseOne Bank | 25 | $36.2M | 0.0% |
| 8 | U.S. Bank, National Association | 23 | $27.5M | 4.8% |
| 9 | Columbia Bank | 21 | $28.1M | 11.1% |
| 10 | The Huntington National Bank | 20 | $25.0M | 16.7% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 129 | 9 | 9.1% |
| GAGeorgia | 103 | 8 | 10.1% |
| CACalifornia | 94 | 4 | 5.1% |
| NCNorth Carolina | 71 | 8 | 15.1% |
| OHOhio | 59 | 9 | 20.9% |
| FLFlorida | 47 | 3 | 7.3% |
| SCSouth Carolina | 44 | 6 | 17.1% |
| ALAlabama | 34 | 3 | 11.5% |
| WAWashington | 34 | 1 | 3.7% |
| PAPennsylvania | 33 | 2 | 7.1% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 10.2% — 37% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Subject: the franchisor is a named party (defendant).
Pending cases include class actions against franchisor and WHR affiliates involving Canadian Destination Marketing Fees (Knuth), hotel algorithmic price-fixing conspiracy (Benoit, Jantunen, Proulx, In Re Extended Stay, Hanson Dai), breach of franchise agreement (Beard Real Estate, Tumas Raju Patel), and franchisor breach claims (WHG v. LuxUrban). Resolved cases include several franchisee breach-of-contract suits (Niazi, Tan, Jariwala/Lancs, Patel Hospitality), a guest resort-fee class action (Luca), keyword advertising restraint (Brodsky), call recording privacy (Roberts), and FTC cybersecurity action (settled). Recent franchisee suits for non-payment and indemnification also disclosed.
Largest disclosed settlement: $500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in extracted text (consolidated WHR financials in Exhibit D)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the audited consolidated statements of Wyndham Hotels & Resorts, Inc. (WHR), which guarantees the franchisor's (Days Inns Worldwide, Inc.) performance. The numeric financial tables (balance sheet, income statement, F-2 through F-9) are not present in the extracted text; only the index to the annual consolidated financial statements is captured.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 58 / 100 verdict
- 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
- 03HIGHLitigation between franchisor and franchisees over breach of contract indicates franchise relationship deterioration and enforcement disputes
- 04MINORHigh 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
Litigation case detail20 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Norma Knuth v. Wyndham Worldwide Corporation, et al.
pendingThird-party plaintiff · filed 2014-12-05 · Court of Queen's Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014
“On December 5, 2014, Plaintiff Norma Knuth filed a class action suit as a representative of all “persons, corporations, and entities, resident or situated in Canada . . . that paid a “Destination Marketing Fee” to a hotel in Canada owned, operated, or managed by one of the defendants.” Plaintiff named Wyndham Worldwide Corporati”Page 21 of the 2026 FDD, Item 3
Concluded (4)
Days Inns Worldwide, Inc. v. Niazi Hotel LLC and Wasim Niazi
settledBrought against a franchisee · filed 2024-07-03 · United States District Court for the District of New Jersey · 2:24-cv-7528-WJM-AME
“On July 3, 2024, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On September 19, 2024, Defendants filed an Answer and Counterclaim alleging breach of contract, breach of implied covenant of good faith and fa”Page 24 of the 2026 FDD, Item 3
Outcome:“The parties reached a settlement in September 2025 wherein defendants dismissed their Counterclaims and are making a settlement payment 26 Days Inn FDD MB Q1/2026 of $335,000 in monthly payments to Days Inns Worldwide, Inc. from September 2025 through August 2026.” (page 25)
Days Inns Worldwide, Inc. v. Tan Lodging Investment, LLC and Jawan Dabish
settledBrought against a franchisee · filed 2024-03-06 · United States District Court for the District of New Jersey · 2:24-cv-01660-MCA-SDA
“On March 6, 2024, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On April 19, 2024, as amended on July 19, 2024, defendants filed an Answer and Counterclaim alleging breach of contract and breach of the cove”Page 25 of the 2026 FDD, Item 3
Outcome:“The parties reached a settlement in December 2025 wherein defendants dismissed their Counterclaims, the Court entered a Consent Judgment in the amount of $500,000 against Tan Lodging Investment, LLC and Jawan Dabish and in favor of Days Inns Worlwide, Inc., and Lodging Investment, LLC and Jawan Dabish are making monthly payments”
Days Inns Worldwide, Inc. v. Patel Hospitality, LLC, Pravin Patel, and Vatsal Patel
settledBrought against a franchisee · filed 2021-04-06 · Superior Court of New Jersey, Morris County Law Division · MRS-L-748-21-RER
“On April 6, 2021, Days Inns Worldwide, Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs. On July 13, 2021, as amended on July 14, 2021, defendants filed an Answer with Counterclaim against Days Inns Worldwide, Inc. and a Third-Part”Page 25 of the 2026 FDD, Item 3
Outcome:“The parties reached a settlement in March 2024 in which defendants made a payment to Days Inns Worldwide, Inc., entered into a Consent Judgment for $100,000 in favor of Days Inns Worldwide, Inc., and dismissed its Counterclaim. Resolved Lit” (page 26)
Lancs Hospitality LLC, et al. v. Days Inns Worldwide, Inc., et al.
judgmentBrought by a franchisee · filed 2019-08-13 · Superior Court of New Jersey, Law Division, Morris County · MRS-L-001730-19
“On August 13, 2019, former franchisee entities Lancs Hospitality LLC, S Boston Hospitality, LLC, HR Penn, LLC, and RHR Wildwood 423, LLC, along with their corresponding guarantors, Urjita P. Bhoola, Hemlata R. Jariwala, Rajendra Jariwala, Guarang Jariwala, and Abhishek Jariwala, (collectively, the “Jariwala Parties”) jointly fil”Page 25 of the 2026 FDD, Item 3
Outcome:“the Court granted the Wyndham Entities default judgment against the corporate Jariwala Parties, after their pleadings were stricken. The individual Jariwala Parties proceeded pro se. On March 3, 2023, the Court granted the Wyndham Entities' Motion for Summary”
Status not stated in the filing (4)
Days Inns Worldwide, Inc. and Baymont Franchise Systems, Inc. v. Arihant of SC LLC, Tulsa Stillwater Hospitality, LLC, South Hill Hospitality LLC, Bhavik Shah, Mital Shah, and Priyank Shah
Brought against a franchisee · filed 2026-02-24 · United States District Court for the District of New Jersey · 2:26-cv-01808
“Days Inns Worldwide, Inc. and Baymont Franchise Systems, Inc. v. Arihant of SC LLC, Tulsa Stillwater Hospitality, LLC, South Hill Hospitality LLC, Bhavik Shah, Mital Shah, and Priyank Shah 2/24/2026 United States District Court for the Dist”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. and Wyndham Hotel Group, LLC v. Bridge Inn LLC and Eldad Cohen
Brought against a franchisee · filed 2026-03-05 · Superior Court of New Jersey Morris County, Law Division · MRS-L-547-26
“Days Inns Worldwide, Inc. and Wyndham Hotel Group, LLC v. Bridge Inn LLC and Eldad Cohen 3/5/2026 Superior Court of New Jersey Morris County, Law Division MRS-L-547-26 Caption Date”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. v. AOA Hospitality, LLC and Abid Siddiq
Brought against a franchisee · filed 2026-03-03 · United States District Court for the District of New Jersey · 2:26-cv-2216
“Days Inns Worldwide, Inc. v. AOA Hospitality, LLC and Abid Siddiq 3/3/2026 United States District Court for the District of New Jersey 2:26-cv-2216 Caption Date Complaint”Page 28 of the 2026 FDD, Item 3
Days Inns Worldwide, Inc. v. Mian Hospitality Solutions, LLC and Mohammed Bashir
Brought against a franchisee · filed 2026-02-19 · United States District Court for the Central District of Illinois · 1:26-cv-1859
“Days Inns Worldwide, Inc. v. Mian Hospitality Solutions, LLC and Mohammed Bashir 2/19/2026 United States District Court for the Central District of Illinois 1:26-cv-1859 Days Inns”Page 28 of the 2026 FDD, Item 3
Parent, affiliates and predecessor
Pending (3)
Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.
pendingBrought by a franchisee · Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. · filed 2025-08-04 · Circuit Court of Chicot County, Arkansas, Civil Division · 09-cv-25-119
“On August 4, 2025, Plaintiff filed suit against Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. (the “Wyndham Entities”) alleging breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, fraudulent and negligent misrepresentation, and unjust enrichment. On September 10,”Page 23 of the 2026 FDD, Item 3
Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.
pendingBrought by a franchisee · Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group and Super 8 Worldwide, Inc. · filed 2025-12-02 · United States District Court, Central District of California · CV25-03815
“On December 2, 2025, Plaintiffs filed suit against Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. (the “Wyndham Entities”) alleging that the Wyndham Entities (1) violated California law, including the Business and Professions Code and the California Franchise Relations Act, for failure to prov”Page 23 of the 2026 FDD, Item 3
Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand
pendingBrought against a franchisee · Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc. and Baymont Franchise Systems, Inc. · filed 2024-05-16 · The Superior Court of New Jersey, Morris County · MRS-L-000977-24
“On May 16, 2024, as amended on November 14, 2024, Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc., and Baymont Franchise Systems, Inc. filed suit against defendants for breach of contract seeking recurring fees, liquidated damages, outstanding balance of various development incentive notes, interest, attorn”Page 23 of the 2026 FDD, Item 3
This list shows 12 of the 20 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Parsippany/Morris County, New Jersey (mediation/litigation only; non-binding mediation option) |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 20 |
View Item 3 litigation summary
Pending cases include class actions against franchisor and WHR affiliates involving Canadian Destination Marketing Fees (Knuth), hotel algorithmic price-fixing conspiracy (Benoit, Jantunen, Proulx, In Re Extended Stay, Hanson Dai), breach of franchise agreement (Beard Real Estate, Tumas Raju Patel), and franchisor breach claims (WHG v. LuxUrban). Resolved cases include several franchisee breach-of-contract suits (Niazi, Tan, Jariwala/Lancs, Patel Hospitality), a guest resort-fee class action (Luca), keyword advertising restraint (Brodsky), call recording privacy (Roberts), and FTC cybersecurity action (settled). Recent franchisee suits for non-payment and indemnification also disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate designated location (Parsippany, NJ hybrid) or online; Opening training at franchisee's Facility
- Ongoing training
- Required
- Site selection
- Franchisee selects site; franchisor reviews and approves via Franchise Application
- Franchisor financing
- Offered
- Item 10
- POS system
- SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
Item 20 · call current owners
Franchisee Contacts
1,143 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 – $3.6M, 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?
Item 19 of the Days Inn FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Days Inn?
Days Inn is franchised by Days Inns Worldwide, Inc.. Its parent company is Wyndham Hotel Group, LLC. The ultimate parent named in the FDD is Wyndham Hotels & Resorts, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Days Inn FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Days Inn FDD and qualifies whose outlets they describe.
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 verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.