Microtel Inn & Suites by WyndhamFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $7.5M – $9.6M
- 35th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 280
- 43rd pct Lodging
- SBA default
- N/A
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
Franchising since 1995. Systems this mature have refined operations and brand recognition.
Franchised units fell from 293 to 280 over 3 years. Investigate why operators are leaving.
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $7.5M – $9.6M including a $40K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Average and Median ADR, Occupancy Rate, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 33/100.
- 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
- Legal entity
- Microtel Inns and Suites Franchising, Inc.
- Parent company
- 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
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.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1995
- FDD year
- 2026
- States available
- 42
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
- Better than avg vs category
- Liquid capital req'd
- $118K – $184K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Room Revenue · 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 |
Financial Performance
This brand's FDD disclosed "Average and Median ADR, Occupancy Rate, 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 Microtel Inn & Suites by Wyndham Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 280
- Opened
- 3
- Last reporting year
- Closed
- 8
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.8%
- Net unit change last year
- 3-yr CAGR
- -4.4%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 9
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 9
- 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.
- Total loans
- 77
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
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 system with undisclosed unit economics, multiple legal liabilities, and no financial benchmarking data creates elevated risk for an $8M+ hotel investment.
Litigation (Item 3)
5 case reference(s): 1 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: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 33 / 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
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 15 |
View Item 3 litigation summary
5 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 37 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site at franchisee's restaurant and at franchisor's facility
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- SynXis Property Hub or OPERA Cloud
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis Property Hub or OPERA Cloud
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 293 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 risk score of 33 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.
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.