Super 8Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Super 8 franchise requires a total initial investment of $285K – $7.1M, including a $25K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 9.4% charge-off rate across 744 loans[1]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $285K – $7.1M
- 17th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 1,344
- 52nd pct Lodging
- SBA default
- 9.4%
- 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 1975. Systems this mature have refined operations and brand recognition.
Franchised units fell from 1419 to 1344 over 3 years. Investigate why operators are leaving.
16 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $285K – $7.1M including a $25K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "ADR, Occupancy Rate, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict D (Below Average) with a risk score of 72/100. SBA loan charge-off rate of 9.4% across 744 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 16 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
- Super 8 Worldwide, Inc.
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- SD
- 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 Advisory Board
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
Super 8 franchisees operate economy-segment hotel properties, managing daily guest services, housekeeping, front desk operations, and property maintenance. Franchisees are responsible for generating room revenue (on which they pay 5.5% royalties to the franchisor), managing operating costs, capital expenditures, and compliance with brand standards across a 20-year license agreement.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1971
- FDD year
- 2026
- States available
- 49
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Application Fee (inclusive of Application Fee)not refundable | $25K | $25K | |
| Photosnot refundable | $2K | $6K | |
| Training Tuitionnot refundable | $5K | $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, Deposits and Related Feesnot refundable | $154K | $309K | |
| Facility Constructionnot refundable | $4.0M | $5.4M | |
| Construction Contingencynot refundable | $198K | $269K | |
| Technology Systemsnot refundable | $47K | $49K | |
| Property Management Set-Up and Installationnot refundable | $6K | $22K | |
| Furniture, Fixtures and Equipmentnot refundable | $216K | $324K | |
| Signagenot refundable | $20K | $80K | |
| Opening Inventorynot refundable | $181K | $210K | |
| Insurancenot refundable | $18K | $70K | |
| 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 | $104K | $169K | |
| Total initial investment | $5.0M | $7.1M |
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
- $285K – $7.1M
- Better than avg vs category
- Liquid capital req'd
- $104K – $180K
- Better than avg vs category
- Franchise fee
- $25K – $25K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $25K |
| Renewal fee | $25K |
| 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 Super 8 Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,344
- Opened
- 29
- Last reporting year
- Closed
- 60
- Turnover rate
- 4.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.3%
- Net unit change last year
- 3-yr CAGR
- -5.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 29
- Closed (3yr)
- 58
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 61
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 30
- Franchisor's next-year forecast
- Transfer rate
- 3.0%
- Owners selling to other franchisees
- Ceased ops
- 2.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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
- 744
- Loan volume
- $941.9M
- Median loan
- $1.2M
- 50th percentile
- Charge-off rate
- 9.4%
- 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)
- 90.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 183
- Defaults
- 64
Vintage analysis
Super 8 charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Super 8'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 15 states
- Startup risk premium and job creation velocity
- 27-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Super 8 presents HIGH RISK due to declining unit economics, multiple active antitrust/fee disputes, zero financial transparency, and aggressive royalty structure on gross revenue during a period of system contraction.
Litigation (Item 3)
11 case reference(s): 3 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 72 / 100 rating
- 01MINORDeclining unit count (-2.3% YoY) signals shrinking franchise system and potential market saturation or franchisee dissatisfaction
- 02HIGHMultiple active litigations including antitrust/price-fixing allegations (Benoit, Jantunen, Proulx) and fee calculation disputes (Janani) suggest systemic franchisor-franchisee conflicts and potential operational cost increases
- 03MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents independent ROI validation and suggests performance data may be weak or inconsistent across portfolio
- 04MEDHigh-end investment range ($7.1M+) combined with undisclosed profitability creates severe information asymmetry and liquidity risk
- 05HIGHResort fee and revenue management litigation (Luca, Extended Stay Antitrust cases) indicate regulatory/legal exposure that may impact pricing power and franchisee margins
- 06MINORFTC cybersecurity settlement demonstrates prior compliance failures and data security vulnerabilities that could expose franchisees to liability
- 07MINOR20-year term with 5.5% royalty on gross room revenue (not profit) locks franchisees into long-term fee obligation regardless of profitability
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 |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 16 |
View Item 3 litigation summary
11 case reference(s): 3 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 franchisor's facility
- 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
Super 8 · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Super 8 franchise?
The total investment to open a Super 8 franchise ranges from $285K – $7.1M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Super 8 franchise owners earn?
Super 8 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 Super 8's franchise failure rate?
Based on SBA 7(a) loan data, Super 8 has a charge-off rate of 9.4% across 744 loans, meaning 9.4% 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 Super 8 franchise locations are there?
As of their most recent FDD filing, Super 8 has 1,344 total units in the United States, including 1,419 franchised units and 0 company-owned units. 29 new units were opened in the latest reporting year.
Is Super 8 a good franchise to buy?
FranchiseVerdict rates Super 8 as a D-grade franchise with a risk score of 72 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.
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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.