Bottom line
- Total investment $248K – $10.1M including a $35K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 904 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Days Inn unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 56 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
96 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Days Inn · FDD (2026) PDF