RamadaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ramada franchise requires a total initial investment of $238K – $24.6M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 17.2% charge-off rate across 633 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $238K – $24.6M
- 14th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 247
- 43rd pct Lodging
- SBA default
- 17.2%
- 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
Franchising since 1989. Systems this mature have refined operations and brand recognition.
Franchised units fell from 279 to 247 over 3 years. Investigate why operators are leaving.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $238K – $24.6M including a $35K franchise fee, 5.0% ongoing royalty.
- Item 19 discloses "ADR, Occupancy Rate, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict C (Average) with a risk score of 65/100. SBA loan charge-off rate of 17.2% across 633 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 11 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
- Ramada Worldwide Inc.
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- DE
- 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
Ramada franchisees operate mid-scale hotel properties under the Ramada brand, managing daily operations including guest services, housekeeping, maintenance, and revenue management. Franchisees pay 5% royalty on gross room revenues plus franchise fees, and must comply with brand standards while competing in a consolidating hotel market where the system has shrunk 6.4% in the past year.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1989
- FDD year
- 2026
- States available
- 45
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee)not refundable | $35K | $35K | |
| Photosnot refundable | $3K | $7K | |
| Training Tuitionnot refundable | $6K | $7K | |
| Training Expensesnot refundable | $3K | $6K | |
| Market Studynot refundable | $5K | $15K | |
| Real Estate and Site Preparation | — | — | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Utility Deposits and Related Feesnot refundable | $329K | $673K | |
| Facility Constructionnot refundable | $7.6M | $11.4M | |
| Construction Contingencynot refundable | $382K | $568K | |
| Technology Systemsnot refundable | $70K | $72K | |
| Property Management Set-Up and Installationnot refundable | $6K | $22K | |
| Furniture, Fixtures and Equipmentnot refundable | $593K | $1.0M | |
| Signagenot refundable | $20K | $80K | |
| Opening Inventorynot refundable | $280K | $322K | |
| Insurancenot refundable | $18K | $65K | |
| Grand Opening Advertisingnot refundable | $3K | $15K | |
| Pre-Opening Wagesnot refundable | $83K | $149K | |
| Miscellaneous Non-Tangible Asset Costsnot refundable | $19K | $37K | |
| Additional Funds for 3 Month Initial Periodnot refundable | $126K | $192K | |
| Total initial investment | $9.6M | $14.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $238K – $24.6M
- Better than avg vs category
- Liquid capital req'd
- $126K – $1.6M
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Room Revenues · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $13K |
| Transfer fee | $35K |
| Renewal fee | $35K |
| Inventory (initial) | $280K – $322K |
| Total fee load | 8.5% of rev |
Financial Performance
This brand's FDD disclosed "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 Ramada Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 247
- Opened
- 5
- Last reporting year
- Closed
- 22
- Turnover rate
- 8.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -6.4%
- Net unit change last year
- 3-yr CAGR
- -11.5%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 27
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.1%
- Franchisor-initiated terminations
- Ceased ops
- 10.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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
- 633
- Loan volume
- $916.0M
- Median loan
- $1.4M
- average
- Charge-off rate
- 17.2%
- 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
- 129
- Defaults
- 79
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
Ramada presents HIGH RISK due to shrinking franchise system, undisclosed profitability metrics, ongoing litigation including price-fixing allegations, and concerning parent company financial status.
Litigation (Item 3)
11 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $403
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 65 / 100 rating
- 01MINORDeclining unit count (-6.4% YoY) indicates system contraction and potential franchisee struggles
- 02MEDNo average revenue or net income disclosed (missing Item 19) prevents assessment of actual profitability and ROI
- 03HIGHMultiple litigation disclosures including price-fixing allegations, class actions on destination marketing fees, and breach of contract cases suggest systemic disputes
- 04MINORWide investment range ($237K–$24.5M) creates uncertainty about actual capital requirements and suggests highly variable unit economics
- 05HIGHGoing Concern status is FALSE, raising questions about parent company financial stability and long-term support
- 06MINOR5% royalty on gross room revenue (not net) compounds burden during low-occupancy periods and economic downturns
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 | protected |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 11 |
View Item 3 litigation summary
11 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 36 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 or OPERA
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis or OPERA
Item 20 · call current owners
Franchisee Contacts
97 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ramada · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ramada franchise?
The total investment to open a Ramada franchise ranges from $238K – $24.6M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ramada franchise owners earn?
Ramada 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 Ramada's franchise failure rate?
Based on SBA 7(a) loan data, Ramada has a charge-off rate of 17.2% across 633 loans, meaning 17.2% 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 Ramada franchise locations are there?
As of their most recent FDD filing, Ramada has 247 total units in the United States, including 279 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is Ramada a good franchise to buy?
FranchiseVerdict rates Ramada as a C-grade franchise with a risk score of 65 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
Are you the franchisor?
If you represent Ramada, you can request corrections or provide updated information.
Claim this brandOther Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.