Ramada Franchise Cost, Revenue & Review 2026
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 →
Data last verified · figures per the 2026 FDD issuance
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 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
- 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 44/100 (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).
- LEGAL11 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
Corporate structure & franchisor financials
- Legal entity
- Ramada Worldwide Inc.
- Parent company
- Wyndham Hotel Group, LLC
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- 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).
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 73% 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 breakdown19 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 – $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% — below the Lodging average of 10.4%.
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 averages
How Ramada Compares
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
3-year detail · Item 20
- Closed (3yr)
- 22
- Terminated (3yr)
- 5
- 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 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%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Ramada's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 20 states
- Startup risk premium and job creation velocity
- SBA 504 real estate/equipment data
Instant access. No subscription.
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)
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 44 / 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
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 |
| 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 | 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
- 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
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 – $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?
No average owner earnings figure for Ramada is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 44 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
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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.