Days Inn Franchise Cost, Revenue & Review 2026
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 – $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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $248K – $10.1M
- 13th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 1,201
- 56th 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 avg · 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
- Total investment $248K – $10.1M including a $35K franchise fee, 5.5% ongoing royalty.
- 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.
- Verdict 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).
- 20 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
Corporate structure & franchisor financials
- Legal entity
- Days Inns Worldwide, Inc.
- Parent company
- Wyndham Hotel Group, LLC
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- 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).
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 49% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown18 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
- 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%
- percentage · 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
Financial Performance
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.
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 average).
Disclosure
Item 19 reports "RevPAR/ADR/Occupancy (no gross sales dollar figures disclosed)" rather than annual gross sales. Not directly comparable across brands.
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 averages
How Days Inn Compares
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
- 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
3-year detail · Item 20
- Opened (3yr)
- 39
- Closed (3yr)
- 68
- Terminated (3yr)
- 5
- 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
- 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.
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.
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)
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)
ⓘ 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
- 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
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 |
| 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
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 verdict score of 58 out of 100 (higher is better), 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.
For franchisors
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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.