Hawthorn Extended Stay by Wyndham Franchise Cost, Revenue & Review 2026
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 does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 16 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $12.6M – $15.3M
- 48th pct Lodging
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.5%
- 38th pct Lodging
- Units
- 82
- 45th pct Lodging
- SBA charge-off
- 0.0%
- % 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
- COSTTotal investment $12.6M – $15.3M including a $40K franchise fee, 5.5% ongoing royalty.
- RETURNSFranchisor 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.
- RISKVerdict A (Strongest tier), verdict score 59/100 (higher is better). SBA loan charge-off rate of 0.0% across 16 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHSystem growing at 20.6% CAGR over 3 years with 82 total units. Strong expansion trajectory.
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.
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- 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).
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 42% 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%
- percentage · 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
Hawthorn Extended Stay by Wyndham did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Hawthorn Extended Stay by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
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
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.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- operating metrics
- Sample size
- 34
- vs category median 99 · small
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 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% — below the Lodging average of 10.4%.
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 averages
How Hawthorn Extended Stay by Wyndham Compares
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
3-year detail · Item 20
- Opened (3yr)
- 13
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 3.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 27 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
27
states with franchisees (per FDD Item 12)
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
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 16 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% 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
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)
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 59 / 100 verdict
- 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
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 |
| 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 | 8 |
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
130 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hawthorn Extended Stay by Wyndham · FDD (2026) PDF
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?
Hawthorn Extended Stay by Wyndham 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 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?
Based on SBA 7(a) loan data, Hawthorn Extended Stay by Wyndham has a charge-off rate of 0.0% across 16 loans, meaning 0.0% 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 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 59 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
Are you the franchisor?
If you represent Hawthorn Extended Stay by Wyndham, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.