La Quinta by Wyndham
Bottom line
- Total investment $1.7M – $18.2M including a $55K 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 57/100. SBA loan default rate of 0.0% across 386 loans (below the industry average).
- 18 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 La Quinta by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
La Quinta franchisees operate limited-service hotel properties under the Wyndham brand umbrella, managing daily operations including housekeeping, front desk, maintenance, and guest services. Franchisees are responsible for capital investment, staffing, marketing, and local compliance while paying 5.5-6% royalties on gross room revenue and benefiting from Wyndham's central reservation system and brand recognition.
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 · 18 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
Declining unit base, extensive litigation including franchisor-franchisee breach suits, missing financial disclosure, and past regulatory action create elevated risk despite established brand and protected territory.
Score breakdown · what drove the 57 / 100 rating
- 01MINORUnit count declining 2.3% YoY indicates shrinking system despite 20-year terms and protected territory
- 02HIGHMultiple active litigations including franchisor breach of contract suits against franchisees, antitrust/price-fixing class actions, and consumer protection class actions signal systemic disputes
- 03MEDNo Item 19 (average unit volumes/profitability) disclosed — inability to validate $1.67M-$18.2M investment thesis
- 04MINORFTC settlement for cybersecurity failures raises data protection and consumer trust concerns in hospitality sector
- 05MEDMassive investment range ($1.67M-$18.2M) without disclosed average revenue/net income makes ROI analysis impossible
- 06MINORFranchisor actively suing franchisees for breach of contract suggests enforcement conflicts and potential unfavorable franchise agreement terms
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
87 numbers
One-time purchase · CSV download · Validation questions included
FDD download
La Quinta by Wyndham · FDD (2026) PDF