La Quinta by Wyndham Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
La Quinta by Wyndham is a limited-service, midscale hotel franchise. Franchisees own and operate individual properties, running front desk, housekeeping, and maintenance on Wyndham's reservation and loyalty systems.
FranchiseVerdict summary · 2026
A La Quinta by Wyndham franchise requires a total initial investment of $13.1M – $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 1.8% charge-off rate across 327 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
- $13.1M – $18.2M
- 45th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 864
- 54th pct Lodging
- SBA charge-off
- 1.8%
- % 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
- Total investment $13.1M – $18.2M including a $55K franchise fee, 5.5% ongoing royalty.
- Item 19 reports lodging performance metrics (ADR, Occupancy Rate, RevPAR) for 435 Qualified Chain Facilities in 2025, not gross sales. Total Sample average ADR $112.75 (median $108.46), average Occupancy 66.5%, average RevPAR $74.95 (median $73.13); average RevPAR Index 100% (median 102%).
- Verdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 1.8% across 327 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 13 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
Corporate structure & franchisor financials
- Legal entity
- La Quinta Franchising LLC
- Parent company
- Wyndham Hotel Group, LLC
- Ultimate parent
- 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
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 2002
- FDD year
- 2026
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 53% 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 | $55K | $55K |
| Working capital (3–6 mo) | $154K | $219K |
| Equipment, build-out, other | $12.9M | $17.9M |
| Total initial investment | $13.1M | $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
- $13.1M – $18.2M
- Middle of category vs category
- Liquid capital req'd
- $154K – $219K
- Top 40% of category vs category
- Franchise fee
- $55K – $55K
- Top 40% of category vs category
- Royalty
- 5.5%
- tiered · 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 |
| Training fee | $6K |
| Transfer fee | $55K |
| Renewal fee | $55K |
| Inventory (initial) | $411K – $415K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
Financial Performance
Item 19 reports lodging performance metrics (ADR, Occupancy Rate, RevPAR) for 435 Qualified Chain Facilities in 2025, not gross sales. Total Sample average ADR $112.75 (median $108.46), average Occupancy 66.5%, average RevPAR $74.95 (median $73.13); average RevPAR Index 100% (median 102%).
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 9.0% (near the Lodging average).
Disclosure
Item 19 reports "RevPAR and ADR/Occupancy (hotel performance metrics)" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System contracting at -3.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 La Quinta by Wyndham Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 864
- Opened
- 11
- Last reporting year
- Closed
- 29
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.9%
- Net unit change over 3 years
- 3-yr CAGR
- -3.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 16
- Closed (3yr)
- 17
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 68
- 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
- 327
- Loan volume
- $1.1B
- Median loan
- $3.5M
- average
- Charge-off rate
- 1.8%
- 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)
- 98.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 105
- Defaults
- 3
- Typical loan rate
- 6.0%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 8%
- top lender's share
Vintage analysis
La Quinta by Wyndham charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Top lenders financing La Quinta by Wyndham franchisees
Showing 3 of 105 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into La Quinta by Wyndham's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 1.8% charge-off rate across 327 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 1.8% — 89% 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
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)
Multiple pending cases: (1) 2 suits against LQF for breach of contract/counterclaims by former franchisees; (2) 3 suits by LQF against terminated franchisees for unpaid fees; (3) 8 suits involving WHR/parent affiliates for price-fixing (hotel revenue management software antitrust class actions), resort/destination marketing fee claims, and cybersecurity/consumer fraud. Several resolved cases disclosed including FTC settlement (2015), class action resort fee settlement (2020).
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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% 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 rightsℹ | 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 | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | New Jersey (non-binding mediation only; litigation venue is Morris County, NJ) |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 13 |
View Item 3 litigation summary
Multiple pending cases: (1) 2 suits against LQF for breach of contract/counterclaims by former franchisees; (2) 3 suits by LQF against terminated franchisees for unpaid fees; (3) 8 suits involving WHR/parent affiliates for price-fixing (hotel revenue management software antitrust class actions), resort/destination marketing fee claims, and cybersecurity/consumer fraud. Several resolved cases disclosed including FTC settlement (2015), class action resort fee settlement (2020).
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate designated location (Parsippany, NJ hybrid) or online (virtual-only); Opening Training at franchisee's facility.
- Ongoing training
- Required
- Site selection
- Franchisee selects site; franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- SynXis PMS (Aven Hospitality) or OPERA PMS (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis PMS (Aven Hospitality) or OPERA PMS (Oracle Hospitality)
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 $13.1M – $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 1.8% across 327 loans, meaning 1.8% 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 864 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 verdict score of 75 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
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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.