FranchiseVerdict
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D75/100FDD 2025

Dazzler Select by Wyndham — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

10 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
10
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern warning indicates parent company financial distress or viability questions
  2. 02MINORZero existing franchise units with unknown growth trajectory suggests failed or pre-launch brand with no proven model
  3. 03HIGHActive litigation across multiple categories (breach of contract, antitrust, class actions) indicates systemic operational and legal issues
  4. 04MEDNo disclosed average revenue or net income prevents ROI validation and suggests poor franchisee performance or data concealment
  5. 05HIGHHigh royalty structure ($85/room/month) combined with broad fee litigation history raises concerns about hidden costs and franchisee profitability
  6. 06MINORRecent FTC settlement for cybersecurity breaches indicates inadequate data protection and brand reputation risk
  7. 07MINORWyndham's history of resort fee and marketing fee class actions suggests franchisees may inherit liability exposure

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.