ECHO Suites Extended Stay by Wyndham
Formerly known as Wyndham Hotels (WoodSpring Suites)
Bottom line
- Total investment $11.6M – $17.4M including a $40K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- 13 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 ECHO Suites Extended Stay by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees operate extended-stay hotel properties under the ECHO Suites brand, managing daily front-desk operations, housekeeping, maintenance, and guest services. They generate revenue through nightly room rates (subject to 5–5.5% royalty) and ancillary services while adhering to Wyndham brand standards and system protocols. Franchisees are responsible for labor, utilities, property maintenance, and local marketing within their protected territory.
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 · 9 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
ECHO Suites presents extreme risk: going concern franchisor, explosive unstable growth, multi-count litigation including price-fixing and antitrust allegations, no profitability disclosure, and $11.6M+ capital requirement with unvalidated returns.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may lack financial stability to support franchisees
- 02MINORExplosive unit growth (260% YoY) with only 18 units suggests instability, not health; growth from ~7 to 18 units is unsustainable trajectory indicator
- 03HIGHMultiple active class action litigations (price-fixing, misleading fees, privacy violations, antitrust) expose franchisees to brand reputation and potential liability
- 04MINORNo average revenue or net income disclosure (Item 19) prevents validation of $11.6M–$17.4M investment ROI claims
- 05HIGHHigh capital requirement ($11.6M–$17.4M) paired with undisclosed profitability and going concern risk creates severe financial exposure
- 06MINORAntitrust class action (In Re Extended Stay Hotel) implicates entire franchisor business model and pricing practices
- 07HIGHLitigation where franchisor is plaintiff (LuxUrban breach of contract) suggests franchisor-franchisee relationship tension
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
ECHO Suites Extended Stay by Wyndham · FDD (2026) PDF