Hawthorn Suites by Wyndham
Bottom line
- Total investment $317K – $14.2M 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 56/100. SBA loan default rate of 0.0% across 27 loans (below the industry average).
- System contracting at -5.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
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 Suites by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees develop and operate extended-stay hotel properties under the Hawthorn Suites brand, managing day-to-day operations including guest services, housekeeping, maintenance, and revenue management. They pay 5.5% royalties on gross room revenues and participate in the Wyndham loyalty ecosystem while managing properties typically in mid-market segments.
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hawthorn Suites presents moderate-to-high risk: anemic growth trajectory, opaque financials, substantial litigation exposure, and demonstrated disputes with current franchisees raise concerns about system viability and franchisor support.
Score breakdown · what drove the 56 / 100 rating
- 01MINORStagnant unit growth (1.5% YoY) indicates declining brand momentum and potential market saturation
- 02HIGHExtensive litigation portfolio spanning destination marketing fees, resort fees, privacy breaches, FTC settlement, and current franchisee contract disputes suggests systemic legal/operational vulnerabilities
- 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation and obscures true profitability
- 04MINORWide investment range ($316K–$14.1M) with unclear unit economics creates uncertainty around capital requirements and break-even timelines
- 05HIGHParent company (Wyndham) litigation history indicates potential for corporate decisions that negatively impact franchise operations (fee structures, brand reputation)
- 06MED5.5% royalty rate coupled with undisclosed revenue baseline makes margin analysis impossible for prospective franchisees
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hawthorn Suites by Wyndham · FDD (2024) PDF