Ramada Franchise Cost, Revenue & Review 2026
- Investment
- $238K – $5.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 11.8%
- on 406 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Ramada by Wyndham is a midscale hotel franchise of full- and limited-service properties. Franchisees own and operate individual hotels, running guest services and maintenance on Wyndham's systems.
FranchiseVerdict summary · 2026
A Ramada franchise requires a total initial investment of $238K – $5.3M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 11.8% charge-off rate across 406 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $238K – $5.3M
- 12th pct Lodging
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 247
- 56th pct Lodging
- SBA charge-off
- 11.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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
- COSTTotal investment $238K – $5.3M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports Average Daily Room Rate, Occupancy Rate and RevPAR for 100 "Qualified Chain Facilities" (of 247 total) for 2025, plus RevPAR Index vs. midscale chain scale and CRS/Wyndham Rewards contribution — not a gross sales/profit financial performance representation.
- RISKVerdict C (Average), verdict score 41/100 (higher is better). SBA loan charge-off rate of 11.8% across 406 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -17 franchised outlets in the latest year (5 opened, 22 closed); 24 signed but not yet open (Item 20).
- LEGAL19 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 7 name the franchisor itself, 8 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Ramada Worldwide Inc.
- Parent company
- Wyndham Hotel Group, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Wyndham Hotels and Resorts, LLC
- Prior franchisor entity
- Incorporated in
- Delaware
- 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).
Same owner · FDD Item 1, page 9
16 other brands on this site name Wyndham Hotels & Resorts, Inc. as parent or ultimate parent in their own FDD.
- AmericInnA
- Arise Suites Extended Stay by WyndhamC
- Baymont Inn & SuitesA
- Days InnB
- Dazzler SelectC
- ECHO Suites Extended Stay by WyndhamB
- Hawthorn Extended Stay by WyndhamA
- La Quinta by WyndhamA
- Microtel Inn & Suites by WyndhamB
- Registry Collection HotelsC
- TRYP by WyndhamB
- Trademark Collection by WyndhamA
- WaterWalk Extended Stay by WyndhamB
- Wingate by WyndhamB
- Wyndham GardenB
- Wyndham GrandB
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1989
- FDD year
- 2026
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 69% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
published investment is a conversion of an existing property. The same filing prices new construction separately at $9,625,641-$14,635,175.
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee) | $35K | $35K | |
| Photos | $3K | $7K | |
| Training Tuition | $3K | $7K | |
| Training Expenses | $1K | $4K | |
| Temporary Signage | $0 | $1K | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $0 | $215K | |
| Facility Improvements | $0 | $3.1M | |
| Conversion Contingency | $0 | $155K | |
| Technology Systems | $2K | $72K | |
| Property Management Set-Up and Installation | $6K | $22K | |
| Furniture, Fixtures and Equipment | $10K | $1.0M | |
| Signage | $15K | $80K | |
| Opening Inventory | $9K | $322K | |
| Insurance | $18K | $65K | |
| Grand Opening Advertising | $3K | $15K | |
| Miscellaneous Non-Tangible Asset Costs | $7K | $23K | |
| Additional Funds for 3 Month Initial Period | $126K | $192K | |
| Total initial investment | $238K | $5.3M |
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 – $5.3M
- Top 40% of category vs category
- Liquid capital req'd
- $126K – $192K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- 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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Ramada is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Ramada unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 19 reports Average Daily Room Rate, Occupancy Rate and RevPAR for 100 "Qualified Chain Facilities" (of 247 total) for 2025, plus RevPAR Index vs. midscale chain scale and CRS/Wyndham Rewards contribution — not a gross sales/profit financial performance representation.
Reported for a subset of outlets rather than the whole system
An occupancy metric, not unit revenue
- Item 19 type
- ADR, Occupancy Rate, and RevPAR
- Sample size
- 100
- vs category median 98
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 175 Lodging brands
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 8.5% (near the Lodging median).
Disclosure
Item 19 reports ADR, Occupancy Rate, and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -11.5% 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 medians
How Ramada Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 247
- Opened
- 5
- Last reporting year
- Closed
- 22
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -11.5%
- Net unit change over 3 years
- 3-yr CAGR
- -11.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 24
- 0.10 per open outlet · Item 20 Table 5
- Projected new
- 11
- Franchisor's next-year forecast
- 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 12 · 45 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
45
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 406
- Loan volume
- $646.1M
- Median loan
- $1.6M
- average
- Charge-off rate
- 11.8%
- on 406 loans · 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)
- 88.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 129
- Defaults
- 36
- Typical loan rate
- 6.1%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 7%
- top lender's share
Vintage analysis
Ramada charge-off rate by loan vintage
Top lenders financing Ramada franchisees
Showing 3 of 129 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Ramada from SBA 7(a) FOIA data.
- Avg interest rate
- 6.09%
- Lender concentration
- 7.1%
Top SBA lendersTop lender holds 7% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | First Western SBLC, Inc | 29 | $38.6M | 0.0% |
| 2 | Business Loan Center, LLC | 29 | $31.9M | 30.4% |
| 3 | U.S. Bank, National Association | 17 | $14.1M | 31.2% |
| 4 | Comerica Bank | 16 | $18.8M | 23.1% |
| 5 | Wells Fargo Bank National Association | 12 | $10.6M | 10.0% |
| 6 | TD Bank, National Association | 12 | $16.6M | 11.1% |
| 7 | GBank | 12 | $32.9M | 0.0% |
| 8 | Readycap Lending, LLC | 11 | $18.0M | 0.0% |
| 9 | Newtek Small Business Finance, Inc. | 9 | $11.1M | 28.6% |
| 10 | Hanmi Bank | 9 | $19.6M | 20.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 55 | 8 | 18.2% |
| GAGeorgia | 33 | 3 | 10.0% |
| CACalifornia | 29 | 0 | 0.0% |
| FLFlorida | 25 | 2 | 10.0% |
| VAVirginia | 16 | 1 | 9.1% |
| OHOhio | 15 | 2 | 15.4% |
| AZArizona | 14 | 0 | 0.0% |
| ILIllinois | 14 | 0 | 0.0% |
| MIMichigan | 14 | 2 | 22.2% |
| WAWashington | 14 | 0 | 0.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 11.8% — 26% 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Multiple breach-of-contract suits by/against Ramada Worldwide over recurring fees and liquidated damages; several Canadian antitrust/class-action suits against parent/affiliates re: IDeaS revenue management software and resort/marketing fee practices; historical FTC data-security settlement and resolved consumer class actions against Wyndham entities.
Largest disclosed settlement: $580,000
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 41 / 100 verdict
- 01HIGH16 litigation matters (parent/system-wide hotel chain)
- 02MINORHistorical FTC data-security settlement noted
- 03MEDNo bankruptcy, no going-concern, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail19 matters · Item 3
Litigation cases
The franchisor
Pending (2)
Ramada Worldwide Inc. v. TCBH, Inc. and Alison Chang
pendingBrought against a franchisee · filed 2023 · United States District Court for the District of Minnesota · 2:24-cv-0955(JMB/DJF)
“Ramada Worldwide Inc. v. TCBH, Inc. and Alison Chang (United States District Court for the District of Minnesota, Case No 2:24-cv-0955(JMB/DJF)). On May 23, 2023, as amended on October 23, 2023, Ramada Worldwide Inc. filed suit against defendants alleging breach of contract and seeking actual damages, recurring fees, interest, attorneys’ fees, and costs.”Page 20 of the 2026 FDD, Item 3
Norma Knuth v. Wyndham Worldwide Corporation, et al.
pendingThird-party plaintiff · filed 2014-12-05 · Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014
“Norma Knuth v. Wyndham Worldwide Corporation, et al. (Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina, QBG-2650/2014). On December 5, 2014, Plaintiff Norma Knuth filed a class action suit as a representative of all “persons, corporations, and entities, resident or situated in Canada . . . that paid a “Destination Marketing Fee”Page 20 of the 2026 FDD, Item 3
Concluded (3)
Ramada Worldwide Inc. v. Sterling Hospitality LLC and Hillside Hospitality LLC
settledBrought against a franchisee · filed 2024-07-02 · United States District Court for the District of New Jersey · 2:24-cv-07488-MCA-AME
“Ramada Worldwide Inc. v. Sterling Hospitality LLC and Hillside Hospitality LLC (United States District Court for the District of New Jersey, Case No 2:24-cv-07488-MCA-AME). On July 2, 2024, Ramada Worldwide Inc. filed suit against defendants alleging breach of contract and seeking liquidated damages, recurring fees, interest, attorneys’ fees, and costs related to two franchise agreements.”Page 22 of the 2026 FDD, Item 3
Outcome:“The parties reached a settlement in December 2025 wherein defendants dismissed their Counterclaims and are making monthly payments to Ramada Worldwide Inc. from December 2025 through March 2027 totaling $580,000.”
Lancs Hospitality LLC, et al. v. Days Inns Worldwide, Inc., et al.
judgmentBrought by a franchisee · filed 2019-08-13 · Superior Court of New Jersey, Law Division, Morris County · MRS-L-001730-19
“Lancs Hospitality LLC, et al. v. Days Inns Worldwide, Inc., et al., Superior Court of New Jersey, Law Division, Morris County (Docket No. MRS-L-001730-19). On August 13, 2019, former franchisee entities Lancs Hospitality LLC, S Boston Hospitality, LLC, HR Penn, LLC, and RHR Wildwood 423, LLC, along with their corresponding guarantors, Urjita P. Bhoola, Hemlata R.”Page 21 of the 2026 FDD, Item 3
Outcome:“January 6, 2023, the Court granted the Wyndham Entities default judgment against the corporate Jariwala Parties, after their pleadings were stricken. The individual Jariwala Parties proceeded pro se. On March 3, 2023, the Court granted the Wyndham Entities' Motion for Summary Judgment against the individual Jariwala Parties in full.”
A N & M, LLC, Ramco William and Mehany Mehany v. Ramada Worldwide Inc. and Shiv Kapoor
settledBrought by a franchisee · filed 2016 · Superior Court of California, Ventura County · 56-2016-00485143-CU-CO-VTA
“A N & M, LLC, Ramco William and Mehany Mehany v. Ramada Worldwide Inc. and Shiv Kapoor (Superior Court of California, Ventura County, Case No. 56-2016-00485143-CU-CO-VTA). On or about June 28, 2013, Plaintiff A N & M, LLC, and Ramada Worldwide Inc. entered into a license agreement for the operation of a Ramada guest lodging facility.”Page 21 of the 2026 FDD, Item 3
Outcome:“In September 2017, the parties entered into a Settlement Agreement whereby A N & M, LLC, Ramco William and Mehany Mehany agreed to pay RWI the amount of $62,500. Both proceedings have been dismissed and the cases are concluded.” (page 22)
Status not stated in the filing (2)
Ramada Worldwide Inc. and Wyndham Hotel Group, LLC v. Vidhi 7 LLC, Dhiman Patel, and Rajesh Patel
Brought against a franchisee · filed 2026-02-27 · United States District Court for the District of New Jersey · 2:26-cv-02043
“Ramada Worldwide Inc. and Wyndham Hotel Group, LLC v. Vidhi 7 LLC, Dhiman Patel, and Rajesh Patel 2/27/2026 United States District Court for the District of New Jersey 2:26-cv-02043”Page 26 of the 2026 FDD, Item 3
Ramada Worldwide, Inc., Wyndham Worldwide Corporation (F/K/A Wyndham Destinations And N/K/A Travel + Leisure Co.), Wyndham Hotels & Resorts, Inc., Wyndham Hotel Group, LLC, Wyndham Hotels and Resorts, LLC, and Wyndham Hotel Management, Inc. V. Ajit Shah
Brought against a franchisee · filed 2025-02-27 · Philadelphia County, Pennsylvania, Court of Common Pleas · 250203840
“Ramada Worldwide, Inc., Wyndham Worldwide Corporation (F/K/A Wyndham Destinations And N/K/A Travel + Leisure Co.), Wyndham Hotels & Resorts, Inc., 2/27/2025 Philadelphia County, Pennsylvania, Court of Common Pleas Case No. 250203840”Page 26 of the 2026 FDD, Item 3
Parent, affiliates and predecessor
Pending (8)
Benoit v. Integrated Decision and Systems Inc. et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. and Wyndham Hotels & Resorts Canada, Inc. (with IDeaS, SAS and other hotel companies) · filed 2026 · Cour Supérieure du Québec · 200-06- 000274-251
“Benoit v. Integrated Decision and Systems Inc. et al. (Cour Supérieure du Québec, Case No. 200-06- 000274-251). In January 2026, Patrick Benoit filed a proposed class action against SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc., Choice Hotels International, Inc., Choice Hotels Canada Inc./Les Hotels De Choix Du”Page 22 of the 2026 FDD, Item 3
Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.
pendingBrought by a franchisee · Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. · filed 2025-08-04 · Circuit Court of Chicot County, Arkansas, Civil Division · 09-cv-25-119
“Beard Real Estate Holding Two, LLC v. Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc. (Circuit Court of Chicot County, Arkansas, Civil Division; Case No. 09-cv-25-119). On August 4, 2025, Plaintiff filed suit against Travelodge Hotels, Inc. and Wyndham Hotels and Resorts, Inc.”Page 23 of the 2026 FDD, Item 3
Jantunen v. SAS Institute (Canada) Inc., et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts Canada, Inc. and Wyndham Hotels & Resorts, Inc. (with IDeaS, SAS and other hotel companies) · filed 2025-12-05 · Supreme Court of British Columbia · VLC-S-S- 259245
“Jantunen v. SAS Institute (Canada) Inc., et al. (Supreme Court of British Columbia, Case No. VLC-S-S- 259245). On December 5, 2025, Evelyn Jantunen and John Jantunen sued SAS Institute (Canada), Inc., SAS Institute Inc., Integrated Decisions and Systems, Inc (“IDeaS”), Accor Management Canada Inc., Accor S.A., APA Canada, Inc., Coast Hotels Limited, Great Eagle Hotels (Canada) Limited, Langham”Page 22 of the 2026 FDD, Item 3
Proulx et al. v. Orsini Bros. Inns Inc. et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts Canada, Inc. and Wyndham Hotel Group Canada, ULC (Wyndham Hotels & Resorts, Inc. removed December 3, 2025) · filed 2025-07-08 · Ontario Superior Court of Justice · CV-25-00000000-00CP
“Proulx et al. v. Orsini Bros. Inns Inc. et al. (Ontario Superior Court of Justice, CV-25-00000000-00CP). On July 8, 2025, plaintiffs Patrick Proulx, Gordon Vanwestern, Boris Susac, and John Martin filed a proposed class action against Carmelo Niagara Company LTD. (d/b/a Wyndham Fallsview Hotel), Wyndham Hotels & Resorts Canada, Inc. and Wyndham Hotels & Resorts, Inc.”Page 23 of the 2026 FDD, Item 3
Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.
pendingBrought by a franchisee · Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. · filed 2025-12-02 · United States District Court, Central District of California · CV25- 03815
“Tumas Raju Patel and Kalpesh Solanki v. Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc. (United States District Court, Central District of California; Case No. CV25- 03815). On December 2, 2025, Plaintiffs filed suit against Wyndham Hotels and Resorts, Inc., Wyndham Hotel Group, and Super 8 Worldwide, Inc.”Page 23 of the 2026 FDD, Item 3
Hanson Dai, et al. v. SAS Institute, Inc., et al.
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. (with SAS, IDeaS and other hotel companies) · filed 2024-04-26 · United States District Court, Northern District of California · 4:24-cv-02537
“Hanson Dai, et al. v. SAS Institute, Inc., et al. (United States District Court, Northern District of California, Case No. 4:24-cv-02537). On April 26, 2024, Plaintiffs Hanson Dai, Max Chiswick, Adolph Robles, Steven Stack, Matthew Gilbert, Michael Molinaro, Tony Qian, and Mark Lester (the “Original Plaintiffs”) filed a purported class action suit against SAS Institute, Inc., Integrated Decisions”Page 24 of the 2026 FDD, Item 3
In Re Extended Stay Hotel Antitrust Litigation
pendingThird-party plaintiff · Wyndham Hotels & Resorts, Inc. (with IDeaS, SAS and other hotel companies) · filed 2024-07-24 · United States District Court, Northern District of California (filed in the Northern District of Illinois) · 4:24- cv-09060-JSW
“In Re Extended Stay Hotel Antitrust Litigation (United States District Court, Northern District of California, Case No. 4:24- cv-09060-JSW). On July 24, 2024, Plaintiffs Andy Au, Karen Austin, Mignon Bacon, Sha-Quwana Boyd, Amanda Casnave, Charlotte Daniels, Trista McRae, Nadia Moreno, Andrew Rivers, Salimu Scott, Elizabeth Suriano, Matthias Will and Cynthia Wright (the “Original Plaintiffs”)”Page 24 of the 2026 FDD, Item 3
Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand
pendingBrought against a franchisee · Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. · filed 2024 · The Superior Court of New Jersey, Morris County · MRS-L-000977-24
“Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc, and Baymont Franchise Systems, Inc. v. LuxUrban Hotels, Inc., LuxUrban RE Holdings LLC, CorpHousing RSL LLC, and Brian Ferdinand (The Superior Court of New Jersey, Morris County, Case No. MRS-L-000977-24). On May 16,”Page 23 of the 2026 FDD, Item 3
This list shows 15 of the 19 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.5% 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 territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 19 |
View Item 3 litigation summary
Multiple breach-of-contract suits by/against Ramada Worldwide over recurring fees and liquidated damages; several Canadian antitrust/class-action suits against parent/affiliates re: IDeaS revenue management software and resort/marketing fee practices; historical FTC data-security settlement and resolved consumer class actions against Wyndham entities.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- 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
234 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 – $5.3M, 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?
Item 19 of the Ramada FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Ramada?
Ramada is franchised by Ramada Worldwide Inc.. Its parent company is Wyndham Hotel Group, LLC. The ultimate parent named in the FDD is Wyndham Hotels & Resorts, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Ramada FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ramada FDD and qualifies whose outlets they describe.
What is Ramada's franchise failure rate?
Based on SBA 7(a) loan data, Ramada has a charge-off rate of 11.8% across 406 loans, meaning 11.8% 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 Ramada franchise locations are there?
As of their most recent FDD filing, Ramada has 247 total units in the United States, including 247 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 verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
Other 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.