FranchiseVerdict
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FV-02130·AVOIDStandard76

Registry Collection Hotels

Lodging - Hotels & MotelsFranchising since 2017Website
Investment
$29.0M
90th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
5.0%
7th pct Hotels & Mote…
Units
2
21st pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $29.0M including a $50K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 82/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
  • 13 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
TRC Franchisor, Inc.
Parent company
Wyndham Hotels & Resorts, Inc.
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

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 Registry Collection Hotels unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
FDD reports $701K–$1.7M

Unlevered ROIC · per unit

0%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$30.2M
Payback
4024 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees operate upscale hotel properties under the Registry Collection brand, managing daily operations including housekeeping, guest services, revenue management, and marketing while paying 5% of gross room revenues as royalties to the franchisor.

CEO
Geoff Ballotti
Founded
2016
FDD year
2026
States available
2

Item 7 · what it costs

The Vitals

Total investment
$29.0M
All-in to open one unit
Liquid capital
$701K – $1.7M
Cash you must have on hand
Franchise fee
$50K
Royalty
5.0%
Gross Room Revenues · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

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

Total units
2
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+100.0%
Net unit change last year
2024
2+1
Franchised units
2025
1
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 5 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 5 states
Not registered

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.

Total loans
1
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

82
Risk · 0-100
AVOID82 / 100

Registry Collection Hotels is a critically distressed micro-franchise with extreme investment requirements, zero transparent financials, active multi-front litigation, and a stalled 2-unit system showing no investor confidence.

Score breakdown · what drove the 82 / 100 rating

  1. 01HIGHExtremely high investment ($28.9M+) with only 2 units system-wide indicates severe scaling failure and potential going concern risk
  2. 02HIGHZero disclosed average revenue and net income data prevents ROI validation; combined with going concern status, suggests financial distress
  3. 03HIGHMultiple active litigations including price-fixing class actions, breach of contract suits against franchisees, and privacy breaches indicate systemic legal and operational issues
  4. 04MINOR100% YoY growth on only 2 units is mathematically meaningless and masks a contracting system with no franchisee demand
  5. 05HIGH20-year term locks franchisees into relationship with undercapitalized franchisor facing potential bankruptcy
  6. 06HIGHMandatory Canadian fee litigation suggests aggressive fee structures and regulatory compliance failures

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Protected territory
Yes
Initial term
20 years
Renewal term
0 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
13
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Owner-operator
Optional
Governing law
New Jersey

Item 11

Training & Operations

Classroom training
45 hrs
On-the-job training
30 hrs
POS system
OPERA PMS
Operating tech stack

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

6 numbers

Locked
(651) 539-••••
MN
(701) 328-••••
ND
(713) 301-••••
TX

One-time purchase · CSV download · Validation questions included

FDD download

Registry Collection Hotels · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above