La Quinta by WyndhamFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A La Quinta by Wyndham franchise requires a total initial investment of $1.7M – $18.2M, including a $55K 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 9.9% charge-off rate across 540 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.7M – $18.2M
- 28th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 864
- 51st pct Lodging
- SBA default
- 9.9%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 901 to 864 over 3 years. Investigate why operators are leaving.
18 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $1.7M – $18.2M including a $55K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "Qualified Chain Facilities average ADR, Occupancy, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 50/100. SBA loan charge-off rate of 9.9% across 540 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- La Quinta Franchising LLC
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- NV
- 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
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.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 2002
- FDD year
- 2026
- States available
- 48
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $55K | $55K |
| Working capital (3–6 mo) | $147K | $219K |
| Equipment, build-out, other | $1.5M | $17.9M |
| Total initial investment | $1.7M | $18.2M |
Source: La Quinta 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
- $1.7M – $18.2M
- Better than avg vs category
- Liquid capital req'd
- $147K – $219K
- Better than avg vs category
- Franchise fee
- $55K – $55K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenues · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Transfer fee | $55K |
| Renewal fee | $55K |
| Inventory (initial) | $411K – $415K |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Qualified Chain Facilities average ADR, Occupancy, and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How La Quinta by Wyndham Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 864
- Opened
- 11
- Last reporting year
- Closed
- 31
- Turnover rate
- 3.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.3%
- Net unit change last year
- 3-yr CAGR
- -3.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 29
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 45
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 40
- Franchisor's next-year forecast
- Transfer rate
- 5.1%
- Owners selling to other franchisees
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 3.3%
- Units that stopped operating
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 540
- Loan volume
- $1.6B
- Median loan
- $2.9M
- average
- Charge-off rate
- 9.9%
- 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
- 0.0%
- Loans approved 2021+
- Active lenders
- 105
- Defaults
- 27
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
5 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 50 / 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Negotiated |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 18 |
View Item 3 litigation summary
5 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- SynXis Property Hub or OPERA
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis Property Hub or OPERA
Item 20 · call current owners
Franchisee Contacts
87 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
La Quinta by Wyndham · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a La Quinta by Wyndham franchise?
The total investment to open a La Quinta by Wyndham franchise ranges from $1.7M – $18.2M, with an initial franchise fee of $55K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do La Quinta by Wyndham franchise owners earn?
La Quinta 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 La Quinta by Wyndham's franchise failure rate?
Based on SBA 7(a) loan data, La Quinta by Wyndham has a charge-off rate of 9.9% across 540 loans, meaning 9.9% 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 La Quinta by Wyndham franchise locations are there?
As of their most recent FDD filing, La Quinta by Wyndham has 864 total units in the United States, including 901 franchised units and 0 company-owned units. 11 new units were opened in the latest reporting year.
Is La Quinta by Wyndham a good franchise to buy?
FranchiseVerdict rates La Quinta by Wyndham as a A-grade franchise with a risk score of 50 out of 100, 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.
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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.