Hawthorn Extended Stay by Wyndham
Formerly known as Hotel Group
Bottom line
- Total investment $12.6M – $15.3M including a $40K 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 62/100.
- 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 Hawthorn 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 develop, construct, and operate extended-stay hotel properties under the Hawthorn brand within Wyndham's loyalty ecosystem. Day-to-day responsibilities include property management, guest services, housekeeping coordination, front-desk operations, revenue management, and compliance with Wyndham brand standards while paying 5.5% royalties on gross room revenue.
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 · 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 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
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+.
Score breakdown · what drove the 62 / 100 rating
- 01MINORNo Item 19 financial performance disclosure (avg revenue/net income) prevents ROI validation on $12.6M-$15.3M investment
- 02HIGHActive class action litigation against parent Wyndham for price fixing, antitrust, misleading fees, and data security breaches creates brand/operational risk
- 03MEDModest unit growth of 15.5% YoY with only 82 total franchises suggests limited scale and market validation for the extended-stay segment
- 04MEDHigh capital requirement ($12.6M-$15.3M) combined with undisclosed profitability creates asymmetric risk for franchisees
- 05MINORFTC 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
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
92 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hawthorn Extended Stay by Wyndham · FDD (2026) PDF