Hawthorn Extended Stay by Wyndham Franchise Cost, Revenue & Review 2026
- Investment
- $12.6M – $15.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 16 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Hawthorn Extended Stay by Wyndham is a midscale extended-stay hotel franchise with in-room kitchens for longer stays. Franchisees develop and operate individual properties, running rooms and guest services on Wyndham's systems.
FranchiseVerdict summary · 2026
A Hawthorn Extended Stay by Wyndham franchise requires a total initial investment of $12.6M – $15.3M, including a $16K – $40K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), 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
- $12.6M – $15.3M
- 48th pct Lodging
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 82
- 45th pct Lodging
- SBA charge-off
- N/A
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 $12.6M – $15.3M including a $40K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports operating metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHNegative, pipeline stalled: 106 agreements signed but not yet open against 82 open outlets (Item 20).
- LEGAL13 litigation matters disclosed in Item 3, higher than typical. Of these, 0 name the franchisor itself, 13 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
- Hawthorn Suites Franchising, Inc.
- Parent company
- U.S. Franchise Systems, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- President and Chief Executive Officer
- Geoff Ballotti
- Incorporated in
- GA
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- 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
- Days InnB
- Dazzler SelectC
- ECHO Suites Extended Stay by WyndhamB
- 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
- 1996
- FDD year
- 2026
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost runs 57% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $135K | $201K |
| Equipment, build-out, other | $12.4M | $15.1M |
| Total initial investment | $12.6M | $15.3M |
Source: Hawthorn Extended Stay by Wyndham 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $12.6M – $15.3M
- Middle of category vs category
- Liquid capital req'd
- $135K – $201K
- Top 40% of category vs category
- Franchise fee
- $16K – $40K
- Top 40% of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Training fee | $6K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $422K – $427K |
| Total fee load | 8.0% 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 Hawthorn Extended Stay by Wyndham 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 Hawthorn Extended Stay by Wyndham 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
Not a revenue figure
- Item 19 type
- operating metrics
- Sample size
- 34
- vs category median 98 · small
- 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 8.0% (near the Lodging median).
Disclosure
Item 19 reports operating metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 20.6% CAGR over 3 years across 82 units — operators are staying and new ones are joining.
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 Hawthorn Extended Stay by Wyndham 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
- 82
- Opened
- 13
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +20.6%
- Net unit change over 3 years
- 3-yr CAGR
- +20.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 106
- 1.29 per open outlet · Item 20 Table 5
- Projected new
- 25
- Franchisor's next-year forecast
- Ceased ops
- 3.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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.
Where the owners are · Item 20 owner list
87 current owners across 27 states.
- TX 14
- CA 8
- OH 7
- FL 6
- GA 6
- IL 4
- NJ 4
- NY 4
- PA 4
- AZ 3
- NM 3
- NV 3
- +15 more states
Counts only, from the list the franchisor prints in Item 20; 130 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 16
- Loan volume
- $59.7M
- Median loan
- $3.9M
- 50th percentile
- Charge-off rate
- Limited · 16 loans
- Limited SBA coverage: 16 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 16 loans
- 5-yr charge-off
- Limited · 16 loans
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- N/A
Borrower mix: 7% went to startups / new businesses, 93% to established operators
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Hawthorn Extended Stay by Wyndham from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 76%
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 6 | 0 | 0.0% |
| FLFlorida | 2 | 0 | 0.0% |
| SCSouth Carolina | 2 | 0 | 0.0% |
| TXTexas | 2 | 0 | 0.0% |
| CACalifornia | 1 | 0 | -- |
| GAGeorgia | 1 | 0 | 0.0% |
| INIndiana | 1 | 0 | -- |
| MOMissouri | 1 | 0 | -- |
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Material litigation risk, missing financial transparency (Item 19), and high capital requirements for a small/growing franchise system warrant cautious due diligence before committing $12M+.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No pending litigation against the franchisor directly. Pending cases against affiliates include pricing/antitrust class actions, resort fee class actions, breach of contract claims, and a Canadian hotel fee class action. Resolved cases include FTC settlement, Luca resort fee settlement, and Brodsky antitrust settlement.
Largest disclosed settlement, in a case that does not name the franchisor: $7,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor is Hawthorn Suites Franchising, Inc.; per Item 21 the audited consolidated financial statements (Exhibit D) are those of guarantor Wyndham Hotels & Resorts, Inc. (WHR). The financial statement tables (pages F-2+) did not extract from this PDF (image-based) and the CPA firm is not named in text. The $1.429 billion figure is WHR total net revenues for 2025 as stated in the Item 8 affiliate-revenue disclosure, not pulled directly from the Item 21 income statement; no balance-sheet figures (assets/liabilities/equity/net income) are available in the extracted text.
ⓘ 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
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 76 / 100 verdict
- 01HIGHActive class action litigation against parent Wyndham for price fixing, antitrust, misleading fees, and data security breaches creates brand/operational risk
- 02MEDModest unit growth of 15.5% YoY with only 82 total franchises suggests limited scale and market validation for the extended-stay segment
- 03MEDHigh capital requirement ($12.6M-$15.3M) combined with undisclosed profitability creates asymmetric risk for franchisees
- 04MINORFTC settlement history on cybersecurity indicates prior data breach exposure affecting customer trust and operational compliance
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail13 matters · Item 3
Litigation cases
Parent, affiliates and predecessor
Pending (9)
Benoit v. Integrated Decision and Systems Inc. et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. · filed 2026 · Cour Supérieure du Québec · 200-06-000274-251
“Benoit v. Integrated Decision and Systems Inc. et al. (Cour Supérieure du Québec, Case No. 200-06- 000274-251). In January 2026, Patrick Benoit filed a proposed class action against SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc., Choice Hotels International, Inc., Choice”Page 20 of the 2026 FDD, Item 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
“Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. (Circuit Court of Chicot County, Arkansas, Civil Division; Case No. 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”Page 21 of the 2026 FDD, Item 3
Jantunen v. SAS Institute (Canada) Inc., et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. · filed 2025-12-05 · Supreme Court of British Columbia · VLC-S-S-259245
“Jantunen v. SAS Institute (Canada) Inc., et al. (Supreme Court of British Columbia, Case No. VLC-S-S- 259245). On December 5, 2025, Evelyn Jantunen and John Jantunen sued SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc.,”Page 20 of the 2026 FDD, Item 3
Proulx et al. v. Orsini Bros. Inns Inc. et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts Canada, Inc. and Wyndham Hotels & Resorts, Inc. (amended to remove Wyndham Hotels & Resorts, Inc. and add Wyndham Hotel Group Canada, ULC) · filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00000000-00CP
“Proulx et al. v. Orsini Bros. Inns Inc. et al. (Ontario Superior Court of Justice, CV-25-00000000-00CP). On July 8, 2025, plaintiffs Patrick Proulx, Gordon Vanwestern, Boris Susac, and John Martin filed a proposed class action against Carmelo Niagara Company LTD. (d/b/a Wyndham Fallsview Hotel), Wyndham Hotels”Page 21 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
“Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. (United States District Court, Central District of California; Case No. 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”Page 22 of the 2026 FDD, Item 3
Hanson Dai, et al. v. SAS Institute, Inc., et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. · filed 2024-04-26 · United States District Court, Northern District of California · 4:24-cv-02537
“Hanson Dai, et al. v. SAS Institute, Inc., et al. (United States District Court, Northern District of California, Case No. 4:24-cv-02537). On April 26, 2024, Plaintiffs Hanson Dai, Max Chiswick, Adolph Robles, Steven Stack, Matthew Gilbert, Michael Molinaro, Tony Qian, and Mark Lester (the “Original Plaintiffs”) filed a purported class action suit against SAS Institute, Inc., Integrated Decisions”Page 23 of the 2026 FDD, Item 3
In Re Extended Stay Hotel Antitrust Litigation
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. · filed 2024-07-24 · United States District Court, Northern District of California · 4:24- cv-09060-JSW
“In Re Extended Stay Hotel Antitrust Litigation (United States District Court, Northern District of California, Case No. 4:24- cv-09060-JSW). On July 24, 2024, Plaintiffs Andy Au, Karen Austin, Mignon Bacon, Sha-Quwana Boyd, Amanda Casnave, Charlotte Daniels, Trista McRae, Nadia Moreno, Andrew Rivers, Salimu Scott, Elizabeth Suriano, Matthias Will and Cynthia Wright (the “Original Plaintiffs”)”Page 22 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
“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 (The Superior Court of New Jersey, Morris County, Case No. MRS-L-000977-24). On May 16, 2024, as amended on November 14, 2024, Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc.,”Page 22 of the 2026 FDD, Item 3
Norma Knuth v. Wyndham Worldwide Corporation, et al.
pendingThird-party plaintiff · Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Days Inns Worldwide, Inc., Ramada Worldwide Inc., Super 8 Worldwide, Inc., Travelodge Hotels, Inc., and Wingate Inns International, Inc. · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014
“Norma Knuth v. Wyndham Worldwide Corporation, et al. (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”Page 23 of the 2026 FDD, Item 3
Concluded (4)
Jay Brodsky v. Hilton Worldwide Inc., et al.
settledThird-party plaintiff · Wyndham Hotels · filed 2018-08-20 · United States District Court for the District of New Jersey · 2:18-cv-13045-KM-JBC
“Jay Brodsky v. Hilton Worldwide Inc., et al. (United States District Court for the District of New Jersey, Case 2:18-cv-13045-KM-JBC). On August 20, 2018, plaintiff Jay Brodsky filed an individual lawsuit against numerous hotel industry companies, including “Wyndham Hotels.” Plaintiff alleged a per se violation of the Sherman Antitrust Act (in the form of bid rigging and a group boycott),”Page 24 of the 2026 FDD, Item 3
Outcome:“Defendants jointly settled for $7,000 payment ($1,400 as to Wyndham Hotels) to Mr. Brodsky on February 22, 2019, resulting in a dismissal of the action.”
Thomas Luca, Jr. v. Wyndham Worldwide Corporation, et al.
settledThird-party plaintiff · Wyndham Hotel Group, LLC and Wyndham Hotels and Resorts, LLC (Wyndham Worldwide Corporation and Wyndham Hotel Management, Inc. dismissed) · filed 2016-06-06 · United States District Court for the Western District of Pennsylvania · 2:16-cv-00746-MRH
“Thomas Luca, Jr. v. Wyndham Worldwide Corporation, et al. (United States District Court for the Western District of Pennsylvania, Case 2:16-cv-00746-MRH). On June 6, 2016, Plaintiff Thomas Luca, Jr. filed a class action lawsuit against defendants Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management, Inc.”Page 23 of the 2026 FDD, Item 3
Outcome:“Wyndham Hotel Group and Wyndham Hotels and Resorts, LLC entered into a settlement agreement with Plaintiff whereby a class was certified for settlement purposes and eligible class members will receive either $22 or 2,200 Wyndham Rewards points, and Wyndham will make certain display changes. The Court granted preliminary approval on October 18, 2019, and granted final approval on February 24, 2020.” (page 24)
FTC v. Wyndham Worldwide Corporation, et al.
dismissedGovernment or regulatory action · Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management, Inc. · filed 2012-06-26 · United States District Court for the District of New Jersey · 13-cv-1887 (ES)(JAD)
“FTC v. Wyndham Worldwide Corporation, et al. (United States District Court for the District of New Jersey, Case No. 13-cv-1887 (ES)(JAD)). On June 26, 2012, the U.S. Federal Trade Commission (“FTC”) filed a lawsuit in Federal District Court for the District of Arizona against Wyndham Worldwide Corporation, Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC and Wyndham Hotel Management,”Page 25 of the 2026 FDD, Item 3
Outcome:“The parties settled the case by executing a Stipulated Order for Injunction, which does not hold the Wyndham Entities liable for any violations, nor require it to pay any monetary relief. The Court entered the Order and dismissed the case with prejudice on December 11, 2015.”
Joyce Roberts, individually and on behalf of classes of similarly situated individuals v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1- 10
settledThird-party plaintiff · Wyndham International, Inc., Wyndham Worldwide Operations, Inc., and Wyndham Hotels and Resorts, LLC · filed 2012-07-17 · Superior Court of the State of California, County of Santa Cruz · RG 12639589
“Joyce Roberts, individually and on behalf of classes of similarly situated individuals v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1- 10 (Superior Court of the State of California, County of Santa Cruz (RG 12639589). On July 17, 2012, a purported class action complaint was filed against Wyndham International, Inc., Wyndham Worldwide”Page 24 of the 2026 FDD, Item 3
Outcome:“The parties reached a settlement before the class certification motion hearing took place, which had been scheduled for September 1, 2015, and thereafter executed a settlement agreement. The Court granted final approval of the settlement and entered an order on the same, dismissing the lawsuit, on October 27, 2016.”
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 8.0% 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 | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | Non-binding mediation |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 13 |
View Item 3 litigation summary
No pending litigation against the franchisor directly. Pending cases against affiliates include pricing/antitrust class actions, resort fee class actions, breach of contract claims, and a Canadian hotel fee class action. Resolved cases include FTC settlement, Luca resort fee settlement, and Brodsky antitrust settlement.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate offices in Parsippany, NJ or virtual (hybrid or virtual-only format)
- Ongoing training
- Required
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- OPERA (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OPERA (Oracle Hospitality)
Item 20 · call current owners
Franchisee Contacts
217 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 Hawthorn Extended Stay by Wyndham franchise?
The total investment to open a Hawthorn Extended Stay by Wyndham franchise ranges from $12.6M – $15.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hawthorn Extended Stay by Wyndham franchise owners earn?
Item 19 of the Hawthorn Extended Stay by Wyndham 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 Hawthorn Extended Stay by Wyndham?
Hawthorn Extended Stay by Wyndham is franchised by Hawthorn Suites Franchising, Inc.. Its parent company is U.S. Franchise Systems, Inc.. The ultimate parent named in the FDD is Wyndham Hotels & Resorts, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Hawthorn Extended Stay by Wyndham 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 Hawthorn Extended Stay by Wyndham FDD and qualifies whose outlets they describe.
What is Hawthorn Extended Stay by Wyndham's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hawthorn Extended Stay by Wyndham (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Hawthorn Extended Stay by Wyndham franchise locations are there?
As of their most recent FDD filing, Hawthorn Extended Stay by Wyndham has 82 total units in the United States, including 82 franchised units and 0 company-owned units. 13 new units were opened in the latest reporting year.
Is Hawthorn Extended Stay by Wyndham a good franchise to buy?
FranchiseVerdict rates Hawthorn Extended Stay by Wyndham as a A-grade franchise with a verdict score of 76 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.