Travelodge By Wyndham Franchise Cost, Revenue & Review 2026
- Investment
- $6.1M – $10.9M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 0.0%
- on 72 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Travelodge By Wyndham franchise requires a total initial investment of $6.1M – $10.9M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 0.0% charge-off rate across 72 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: high - issued more than two years ago
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
- $6.1M – $10.9M
- 34th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 339
- 59th pct Lodging
- SBA charge-off
- 0.0%
- % 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 $6.1M – $10.9M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 discloses only hotel per-room lodging metrics, not whole-unit annual revenue. For 146 Qualified Chain Facilities (of 339 U.S. facilities) for calendar year 2023: Average Daily Room Rate (ADR) avg $92.35 / median $86.81; Occupancy Rate avg 52.5% / median 53.4%; RevPAR (gross room revenue per available room) avg $48.45 / median $45.70. Average RevPAR Index 121% / median 114% vs U.S. economy chain scale. Also Central Reservation System contribution avg 63.7% and Wyndham Rewards contribution avg 37.8% of gross room revenue across all 339 facilities. No whole-unit gross sales, per-hotel revenue, or franchisee net income disclosed.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better). SBA loan charge-off rate of 0.0% across 72 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -1 franchised outlets in the latest year (31 opened, 32 closed) (Item 20).
- LEGAL15 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
- Travelodge Hotels, Inc.
- Parent company
- Wyndham Hotel Group, LLC
- FDD Item 1, page 10 of the 2024 FDD
- Ultimate parent
- Wyndham Hotels & Resorts, Inc.
- FDD Item 1, page 10 of the 2024 FDD
- CEO title
- President and Chief Executive Officer
- Geoff Ballotti
- Incorporated in
- DE
- Franchisor revenue
- $1.4B
- vs $1.5B prior year
Same owner · FDD Item 1, page 10
17 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
- RamadaC
- 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 2024 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
Franchisor of Travelodge brand transient guest lodging facilities (economy hotels).
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1996
- FDD year
- 2024
Can you afford it, and what does the money buy?
Entry cost is about typical for a lodging franchise (near the category median).
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $116K | $177K |
| Equipment, build-out, other | $5.9M | $10.7M |
| Total initial investment | $6.1M | $10.9M |
Source: Travelodge By Wyndham 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $6.1M – $10.9M
- Top 40% of category vs category
- Liquid capital req'd
- $116K – $177K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $35K |
| Renewal fee | $35K |
| Inventory (initial) | $250K – $305K |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Travelodge By Wyndham 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 Travelodge By Wyndham 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: 2024 FDD
Financial Performance
Item 19 discloses only hotel per-room lodging metrics, not whole-unit annual revenue. For 146 Qualified Chain Facilities (of 339 U.S. facilities) for calendar year 2023: Average Daily Room Rate (ADR) avg $92.35 / median $86.81; Occupancy Rate avg 52.5% / median 53.4%; RevPAR (gross room revenue per available room) avg $48.45 / median $45.70. Average RevPAR Index 121% / median 114% vs U.S. economy chain scale. Also Central Reservation System contribution avg 63.7% and Wyndham Rewards contribution avg 37.8% of gross room revenue across all 339 facilities. No whole-unit gross sales, per-hotel revenue, or franchisee net income disclosed.
An occupancy metric, not unit revenue
- Item 19 type
- other
- Sample size
- 146
- vs category median 98
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
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
5.0% royalty + 2.0% ad fund.
Disclosure
Item 19 reports other rather than annual gross sales, so unit revenue is not directly comparable.
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 Travelodge By Wyndham 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 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 339
- Opened
- 31
- Last reporting year
- Closed
- 32
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 17
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 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.
Where the owners are · Item 20 owner list
102 current owners across 11 states.
- CA 48
- FL 15
- AZ 9
- GA 9
- CO 6
- IL 5
- IA 4
- AL 3
- AK 1
- LA 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 72
- Loan volume
- $155.0M
- Median loan
- $1.9M
- 50th percentile
- Charge-off rate
- 0.0%
- on 72 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)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 37
- Defaults
- 0
- Typical loan rate
- 6.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7211
- Jobs supported
- 679
- 0.4 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 15% went to startups / new businesses, 85% to established operators
Vintage analysis
Travelodge By Wyndham charge-off rate by loan vintage
Top lenders financing Travelodge By Wyndham franchisees
Showing 3 of 37 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 Travelodge By Wyndham from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 77%
- Avg interest rate
- 6.32%
- Lender concentration
- 18.1%
- Job velocity
- 0.4 per $100K
- Startup risk premium
- 0.0pp
- Jobs supported
- 679
Top SBA lendersTop lender holds 18% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 13 | N/A | N/A | |
| 2 | 5 | N/A | N/A | |
| 3 | 3 | N/A | N/A | |
| 4 | 3 | N/A | N/A | |
| 5 | 3 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 12 | 0 | 0.0% |
| GAGeorgia | 8 | 0 | 0.0% |
| FLFlorida | 5 | 0 | 0.0% |
| AZArizona | 4 | 0 | 0.0% |
| MIMichigan | 4 | 0 | -- |
| NMNew Mexico | 4 | 0 | 0.0% |
| SCSouth Carolina | 4 | 0 | 0.0% |
| TXTexas | 4 | 0 | 0.0% |
| WAWashington | 4 | 0 | 0.0% |
| COColorado | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 72 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% 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).
Item 3 discloses: (1) Pending against franchisor: Knuth class action (Canada, Destination Marketing Fee, $403M restitution sought). (2) Pending against parents/affiliates: Au and Dai antitrust class actions re IDeaS revenue-management software (Sherman Act). (3) Resolved against franchisor: Devayatan (negligent misrepresentation; THI won $530,000 settlement) and Pooniwala (Minnesota Franchise Act; settled $220,000). (4) Resolved against parents/affiliates: Luca (resort fees), Brodsky (antitrust, settled), Roberts and Stone (call-recording privacy, settled), FTC v. Wyndham (data-security), and FFC Capital (breach of contract, settled $260,000). (5) Litigation against terminated franchisees for non-payment commenced in past fiscal year: Travelodge Hotels, Inc. as plaintiff v. Mantera Equity, Jiaan Hospitality, and Dream Land Hospitality.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Mandatory arbitration | No |
| Arbitration location | Morris County, New Jersey |
| Governing law | NJ |
| Litigation count | 15 |
View Item 3 litigation summary
Item 3 discloses: (1) Pending against franchisor: Knuth class action (Canada, Destination Marketing Fee, $403M restitution sought). (2) Pending against parents/affiliates: Au and Dai antitrust class actions re IDeaS revenue-management software (Sherman Act). (3) Resolved against franchisor: Devayatan (negligent misrepresentation; THI won $530,000 settlement) and Pooniwala (Minnesota Franchise Act; settled $220,000). (4) Resolved against parents/affiliates: Luca (resort fees), Brodsky (antitrust, settled), Roberts and Stone (call-recording privacy, settled), FTC v. Wyndham (data-security), and FFC Capital (breach of contract, settled $260,000). (5) Litigation against terminated franchisees for non-payment commenced in past fiscal year: Travelodge Hotels, Inc. as plaintiff v. Mantera Equity, Jiaan Hospitality, and Dream Land Hospitality.
Items 10, 11
Training & Operations
- Ongoing training
- Required
- POS system
- SynXis (Sabre Hospitality) or OPERA (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis (Sabre Hospitality) or OPERA (Oracle Hospitality)
Item 20 · call current owners
Franchisee Contacts
102 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 Travelodge By Wyndham franchise?
The total investment to open a Travelodge By Wyndham franchise ranges from $6.1M – $10.9M, 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 Travelodge By Wyndham franchise owners earn?
Item 19 of the Travelodge By Wyndham 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 Travelodge By Wyndham?
Travelodge By Wyndham is franchised by Travelodge Hotels, 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, 2024 filing.
What is Item 19 in the Travelodge By Wyndham 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 Travelodge By Wyndham FDD and qualifies whose outlets they describe.
What is Travelodge By Wyndham's franchise failure rate?
Based on SBA 7(a) loan data, Travelodge By Wyndham has a charge-off rate of 0.0% across 72 loans, meaning 0.0% 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 Travelodge By Wyndham franchise locations are there?
As of their most recent FDD filing, Travelodge By Wyndham has 339 total units in the United States, including 339 franchised units and 0 company-owned units. 31 new units were opened in the latest reporting year.
Is Travelodge By Wyndham a good franchise to buy?
FranchiseVerdict rates Travelodge By Wyndham as a A-grade franchise with a verdict score of 73 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?
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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.