Microtel Inn & Suites by Wyndham
Bottom line
- Total investment $7.5M – $9.6M including a $40K franchise fee, 6.0% 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 77 loans (below the industry average).
- 15 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 Microtel Inn & Suites by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees develop, construct, and operate limited-service hotel properties under the Microtel brand, generating revenue primarily through nightly room rentals. Day-to-day operations include housekeeping, front desk management, maintenance, marketing, and guest services while paying 6% royalties on gross room revenue to Wyndham and adhering to brand standards.
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 · 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 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 system with undisclosed unit economics, multiple legal liabilities, and no financial benchmarking data creates elevated risk for an $8M+ hotel investment.
Score breakdown · what drove the 57 / 100 rating
- 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
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
98 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Microtel Inn & Suites by Wyndham · FDD (2026) PDF