Microtel Inn & Suites by Wyndham Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Microtel Inn & Suites by Wyndham is a limited-service, economy-to-midscale hotel franchise of new-construction properties. Franchisees develop and operate individual hotels, running rooms and guest services on Wyndham's systems.
FranchiseVerdict summary · 2026
A Microtel Inn & Suites by Wyndham franchise requires a total initial investment of $7.5M – $9.6M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). 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
- $7.5M – $9.6M
- 36th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 6.0%
- 40th pct Lodging
- Units
- 280
- 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
- Total investment $7.5M – $9.6M including a $40K franchise fee, 6.0% ongoing royalty.
- Item 21/Exhibit D references audited consolidated financial statements of parent Wyndham Hotels & Resorts, Inc. (auditor PCAOB ID No. 34). Only the index page (F-1) appears in the extracted text; balance sheet, income statement, and equity pages (F-2 to F-9) were not captured, so no figures are available.
- Verdict A (Strongest tier), verdict score 63/100 (higher is better).
- Item 19 reports "ADR/Occupancy/RevPAR metrics (not gross sales)" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Microtel Inns and Suites Franchising, Inc.
- Parent company
- U.S. Franchise Systems, Inc. (USFS); Wyndham Hotel Group, LLC; Wyndham Hotels & Resorts, 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- 1995
- FDD year
- 2026
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 17% below 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) | $118K | $184K |
| Equipment, build-out, other | $7.4M | $9.3M |
| Total initial investment | $7.5M | $9.6M |
Source: Microtel Inn & Suites 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
- $7.5M – $9.6M
- Top 40% of category vs category
- Liquid capital req'd
- $118K – $184K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $5K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $276K – $299K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
Financial Performance
Item 21/Exhibit D references audited consolidated financial statements of parent Wyndham Hotels & Resorts, Inc. (auditor PCAOB ID No. 34). Only the index page (F-1) appears in the extracted text; balance sheet, income statement, and equity pages (F-2 to F-9) were not captured, so no figures are available.
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 10.3%.
Disclosure
Item 19 reports "ADR/Occupancy/RevPAR metrics (not gross sales)" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System contracting at -4.4% 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 Microtel Inn & Suites by Wyndham Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 280
- Opened
- 3
- Last reporting year
- Closed
- 8
- Turnover rate
- 7.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.4%
- Net unit change over 3 years
- 3-yr CAGR
- -4.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 20
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 36
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 3.1%
- Owners selling to other franchisees
- Termination rate
- 0.3%
- Franchisor-initiated terminations
- Ceased ops
- 3.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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.
No SBA loan data available for this brand.
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
Declining system with undisclosed unit economics, multiple legal liabilities, and no financial benchmarking data creates elevated risk for an $8M+ hotel investment.
Litigation (Item 3)
No pending litigation against the Franchisor. Nine pending cases against parents/affiliates include Canadian class actions (price-fixing/hotel fee), franchisee breach cases, and extended stay antitrust litigation. One resolved case named MISF directly (New Mexico). One pending indemnification suit filed by MISF and affiliates against franchisees.
Largest disclosed settlement: $7,000
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
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01MINORDeclining unit count (-1.8% YoY) indicates system contraction and potential saturation or performance issues
- 02HIGHMaterial litigation disclosed involving price-fixing, fee transparency, breach of contract, and data security—suggests franchisor governance and legal compliance concerns
- 03MEDNo Item 19 financial performance data (Avg Revenue and Net Income not disclosed) prevents prospective franchisees from validating ROI assumptions on $7.5M-$9.6M investment
- 04MINORHigh capital requirement ($7.5M-$9.6M) combined with 6% royalty creates substantial fixed costs with unvalidated revenue potential
- 05MINOR20-year term locks franchisee into relationship with litigious franchisor; exit costs likely high given capital intensity
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 rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | New Jersey (Morris County or US District Court for NJ); non-binding mediation available |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 9 |
View Item 3 litigation summary
No pending litigation against the Franchisor. Nine pending cases against parents/affiliates include Canadian class actions (price-fixing/hotel fee), franchisee breach cases, and extended stay antitrust litigation. One resolved case named MISF directly (New Mexico). One pending indemnification suit filed by MISF and affiliates against franchisees.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate designated location (Parsippany, NJ) or online (hybrid or virtual-only)
- Ongoing training
- Required
- Site selection
- Franchisee selects, Franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
Item 20 · call current owners
Franchisee Contacts
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Microtel Inn & Suites by Wyndham · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Microtel Inn & Suites by Wyndham franchise?
The total investment to open a Microtel Inn & Suites by Wyndham franchise ranges from $7.5M – $9.6M, 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 Microtel Inn & Suites by Wyndham franchise owners earn?
Microtel Inn & Suites 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 Microtel Inn & Suites by Wyndham's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Microtel Inn & Suites 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 Microtel Inn & Suites by Wyndham franchise locations are there?
As of their most recent FDD filing, Microtel Inn & Suites by Wyndham has 280 total units in the United States, including 280 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Microtel Inn & Suites by Wyndham a good franchise to buy?
FranchiseVerdict rates Microtel Inn & Suites by Wyndham as a A-grade franchise with a verdict score of 63 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.