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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), 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 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 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 B (Above average), verdict score 59/100 (higher is better).
- 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 33% 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
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
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% — 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 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.
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
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
Borrower mix: 7% went to startups / new businesses, 93% to established operators
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hawthorn Extended Stay by Wyndham's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
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)
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
- 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
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
217 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?
No average owner earnings figure for Hawthorn Extended Stay by Wyndham is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 B-grade franchise with a verdict score of 59 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.
For franchisors
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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.