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Travelodge By Wyndham Franchise Cost & 2024 FDD Data

LodgingNew JerseyFranchising since 1996

74/100

Strongest tier

74 this brand65 Lodging medianlikely 68–80: narrower with a newer filing (high confidence)

Higher is better · an editorial assessment, not investment advice

#368 of 3,069 graded brands

Why an A: Helped by scale, legal record and transparency. Held back by unit growth. See all six factors

Total investment
$6.1M – $10.9M
excl. real estate
Avg gross sales
partial, no system average
SBA charge-off
0.0%

None of the 26 resolved SBA 7(a) loans to Travelodge By Wyndham owners charged off (approved since FY1991); Lodging median 3.2%. Loans approved FY2018–FY2021: 0 of 25 resolved loans charged off (0.0%); newer loans have not had time to default, so this is not a trend.

5 of 5 figures cite a filing pageFDD 2024 · 2yr oldOwner-operator not requiredProtected territory

Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

FranchiseVerdict summary · 2024 FDD

Per the 2024 FDD, a Travelodge By Wyndham franchise requires a total initial investment of $6.1M – $10.9M, excluding real estate, including a $35K franchise fee. Once open, the ongoing royalty is 5.0%. 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 on 26 resolved loans. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.

Sources: 2024 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →

Sources, dates and evidence

FDD issued: · Last cited check: · Staleness risk: high (issued more than two years ago)

Evidence for the headline figures: 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

Bottom line

  • 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.
  • GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 1 (31 opened, 32 closed).
  • LEGAL14 litigation matters disclosed in Item 3, higher than typical. Of these, 6 name the franchisor or its predecessor, 8 its parent or affiliates. Pending claims are allegations, not findings.

AT STAKEOne unit at the Item 7 midpoint: $810K a year in payments on assumed SBA 7(a)-style terms.You put in about $3.5M of your own cash and personally guarantee a $5.0M loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose

Things to check before you sign (3)

  • Net -1 franchised outlets in 2023 (Item 20, outlet counts). Ask owners why outlets closed.
  • 1 pending matter names the franchisor in Item 3 (litigation). Pending claims are allegations, not findings; for a system this size the score counts the legal record in the brand's favour. Read the matter in Item 3.
  • The franchisor keeps the right to compete inside your territory (Item 12, territory).

Checked and clear: no auditor doubt that the franchisor can keep operating, SBA charge-off rate 0.0%, below the 3.2% category median, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 146 units. Not on file here, so ask: jury-trial waiver and supplier rebates.

What to do next

  1. Step 1: Read the FDD itself.

    Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.

  2. Step 2: Talk to current and former owners.

    Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.

  3. Step 3: Talk to an SBA lender.

    Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.

  4. Step 4: Have a franchise attorney review the FDD and agreement.

    Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.

Research steps, not investment or legal advice.

Can you afford it, and what does the money buy?

Entry cost (the Item 7 midpoint) is near the Lodging median ($8.5M).

Total investment$6.1M – $10.9M
2024 FDD p.45, show the quoted text2024 Franchise Disclosure Document, page 45, Item 7Us, Employees, Suppliers, Utilities Total Estimated Initial Investment 19,20 $6,077,894 $10,927,148 The table does not include the cost of purchasing or leasing real estate. …Quoted from the franchisor's filing; the figure on this page is rounded. Table text, cells in reading order; column headings may sit outside the quoted lines.
Excludes real estate (p.45)
Franchise fee$35,000
2024 FDD p.28, show the quoted text2024 Franchise Disclosure Document, page 28, Item 5… franchises must pay an Application Fee, as well as a “Relicense Fee” (instead of an Initial Fee), which is equal to the greater of $35,000 or …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Royalty5.0%
2024 FDD p.32, show the quoted text2024 Franchise Disclosure Document, page 32, Item 6… $6,000, but is subject to increase in the future. ITEM 6. OTHER FEES Type of Fee 1 Amount Due Date Remarks General Fees Royalty 5.0% of Gross Room Revenues …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Ad fund2.0%
2024 FDD p.32, show the quoted text2024 Franchise Disclosure Document, page 32, Item 6Marketing Contribution” of 2%Quoted from the franchisor's filing.
Working capital$116K – $177K

Source: FDD 2024 · Items 5–7 (fees and startup costs)

Do you qualify? The filing states no minimum net worth or liquid capital. Ask Travelodge Hotels, Inc. and your lender what they require, and keep living costs for the first year outside the deal.

Full Item 7 breakdown18 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Fee (inclusive of Application Fee)$35K$35K
Photos$2.45K$5.6K
Training Tuition$5.1K$6.5K
Training Expenses$2.7K$4.45K
Market Study$5K$12K
Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees$166.4K$427.2K
Facility Construction$4.6M$8.2M
Construction Contingency$231.4K$409.7K
Technology Systems$68.1K$70.1K
Property Management Set-Up and Installation$4.4K$21.4K
Furniture, Fixture and Equipment$430.9K$958.5K
Signage$20K$80K
Opening Inventory$250.2K$304.9K
Insurance$15K$30K
Grand Opening Advertising$1.5K$14.5K
Pre-Opening Wages$78.5K$140.3K
Miscellaneous Non– Tangible Asset Costs$18.1K$34.9K
Additional Funds for 3 Month Initial Period$115.6K$177.4K
Total initial investment$6.1M$10.9M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.

Item 6 · what you pay once you are open

Ongoing fees

Travelodge By Wyndham: Item 6 recurring fees
FeeAmount
Royalty5.0% of gross sales
Marketing / ad fund2.0% of gross sales
Technology fees
The filing's detail PMS Set-Up and Implementation Fee: one-time $4,400 (SynXis) or $10,750-$21,450 (OPERA); ongoing monthly PMS support/service/interface fees per MITA Schedule (amounts not specified in reviewed text).
See the list
Transfer fee$35,000
Renewal fee$35,000
Total fee loadbelow the Lodging median of 8.5% (lean)7.0% of sales

What do units actually make?

Avg gross salesPartial, no system average
Median gross salesNot extracted
Item 19 typeother
Sample size146

Source: FDD 2024 · Item 19 (sales and earnings)

Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled

What you could make and lose: one unit

What one Travelodge By Wyndham unit would ask of you, from the filing's Item 7 total and labeled assumptions.

How these figures are worked out
  • Loan (assumption): 80% of the $8.5M Item 7 midpoint is a $5.0M loan, capped at the SBA 7(a) program's $5.0M limit, paid over 10 years at 10.5%: $810K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Travelodge By Wyndham's past SBA 7(a) loans averaged 6.3% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.

What you put at risk

Your own cash in: about $3.5M Assumption (the part the loan does not cover of the $8.5M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $5.0M.

Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.

Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.

Returns modelOne unit · several units · editable

Item 19 of the Travelodge By Wyndham FDD discloses figures for part of the system but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.

Returns model · one unit

What would one Travelodge By Wyndham unit leave you each year after the loan payment?

FDDFrom the filingNot set: not on this page yet; this brand's Item 19 prints it. Read it there and enter itYou overrode an FDD valueAssumed: our stated assumption, edit it
Gross sales · per unit, per year

Not disclosed in Item 19. Enter your own gross sales assumption

Gross sales, not profit: the costs below decide what is left.

Franchisor take · royalty + ad fund
Operating costs · you supply them

This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.

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.

Total invested capital · what you put in to open

Item 7 midpoint of $6.1M to $10.9M

Item 7's $116K to $177K additional funds are already in the total

Financing · assumed SBA 7(a)-style loan

Left after the loan payment · per year

The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.

Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.


Unit EBITDA · annual
Needs the inputs above
EBITDA margin
Needs the inputs above
Total invested
$8.5M
Your cash in
$3.5M
Loan payment · assumed, capped at $5M
$810K/yr
Return on invested capital
Needs the inputs above
Payback
Needs the inputs above

Loan of $5.0M at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.

One unit only. An owner of several units also pays for shared services (managers, accounting, a head office), which the multi-unit model adds on top of these figures.

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 · filed by Travelodge Hotels, Inc.

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.

Percentile ranks within Lodging
Gross sales rank
No comparison data
Investment cost rank48th percentile
among 128 brands with the figure · a high percentile means costlier to open
Royalty rate rank3rd percentile
among 119 brands with the figure · a low percentile means a lower royalty
Unit count rank80th percentile
among 131 brands with the figure

Each rank is among the Lodging brands that report that figure (the count is under each bar).

Who are you contracting with?

Travelodge Hotels, Inc., owned by Wyndham Hotel Group, LLC.

Item 1 (the franchisor) · 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
latest fiscal year in the 2024 FDD; $1.5B the year before

Same owner · FDD Item 1, page 10

19 other brands on this site name Wyndham Hotels & Resorts, Inc. as parent or ultimate parent in their own FDD.

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
Franchised outlets in
43 states and territories
Item 20 Table 3, at year end

Is the system healthy?

-13 franchised outlets over the two years to 2023 (352 to 339, -3.7% in total, -1.9% a year compounded).

Franchised units339
Verified · 2024 FDD p.90, show the quoted text2024 Franchise Disclosure Document, page 90, Item 20Outlet Summary For years 2021 to 2023 (U.S. Only) Outlet Type Year Outlets at the Start of the Year Outlets at the End of the Year Net Change Franchised 2021 351 352 1 2022 352 340 -12 2023 340 339 …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Transferred17
Net change, latest year-1 (unfavorable)(-0.3%)
Turnover rate9.4%

Source: FDD 2024 · Item 20 (outlets opened, closed and transferred)

Item 20 (outlet counts) · unit dynamics

The growth chart

Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned

Last fiscal year · Item 20 rates and pipeline

Reacquired
0
Franchisor bought back

Item 20 · franchised units at year end

Franchised units fell from 352 in 2021 to 339 in 2023

Axis does not start at zero.

Source and method
FDD Item 20, franchised outlets at each year end. Opened and closed are the latest year's counts.

Item 20 (outlet counts) Table 3 · franchised outlets at year end

Where current outlets are

Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.

Current outlets (count on the tile) · 43 statesNo current outlet

339 franchised outlets at year end in 43 states (Item 20 Table 3).

Government records

SBA loan data

Lenders charged off 0.0% of 26 resolved SBA 7(a) loans, below the 3.2% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.

Loans on file
72
SBA 7(a) loans matched to this brand, incl. those still being repaid
Loan volume
$155.0M
Average loan
$2.2M
loan volume divided by loans
Charge-off rate
0.0%
0 of 26 resolved loans
Paid in full
100.0%
of resolved loans
Charge-off, loans approved FY2018–FY2021
0.0%
0 of 25 resolved loans; newer loans have not had time to default, so this is not a trend
Lenders
37
Average interest rate
6.3%
Jobs reported
679
Lender concentration
18%
top lender's share

Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated

Benchmark: the median Lodging brand charges off 3.2% (29 brands with a published rate, same cumulative window and source). This brand is 3.2 points below it.

Borrower mix: of 71 loans with a business-age entry, 67 recorded an age: 11 (16%) went to startups or businesses under two years old and 56 (84%) to established businesses or ownership changes; 4 were marked unanswered.

The approval-year breakdown covers 25 of the 26 resolved loans and 0 of the 0 charge-offs (FY2018 to FY2021).

SBA 7(a) · charge-off rate by approval year

Travelodge By Wyndham charge-off rate by loan approval year

None of these 4 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.

Show the numbers by year
YearResolvedCharged offRate
201850Too few
201970Too few
202070Too early
202160Too early
Source and method
SBA 7(a) FOIA loan records. Rate: charged-off loans over resolved loans (paid in full plus charged off) for loans approved that year; it moves as loans are resolved.
Loans on file
7
every non-cancelled 504 loan, incl. still being repaid
Loan volume
$11.1M
Charge-off rate
Not shown
too few resolved loans to judge (1 resolved; shown from 10)
Jobs reported
57

Cumulative: every 504 loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Full SBA lending reportlenders · charge-off rate · trend

Lender network · SBA 7(a)

SBA Lending Report

Lender, state and yearly detail for Travelodge By Wyndham from SBA 7(a) FOIA loan records.

Average SBA guarantee
77%
Average interest rate
6.3%
Lender concentration
18%
Jobs reported
679

Top 10 SBA lenders by loan count

LoansVolumeCharge-off
GBank
13$27.2MNot on file
Embassy National Bank
5$10.5MNot on file
First Western SBLC, Inc
3$4.8MNot on file
Celtic Bank Corporation
3$6.7MNot on file
Millennium Bank
3$3.0MNot on file

A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.

Charge-off rate by state (top 10 by loans)

StateLoansCharged offRate
CA California120Too few5 resolved
GA Georgia80Too few3 resolved
FL Florida50Too few1 resolved
AZ Arizona40Too few1 resolved
MI Michigan40Too few0 resolved
NM New Mexico40Too few1 resolved
SC South Carolina40Too few2 resolved
TX Texas40Too few1 resolved
WA Washington40Too few2 resolved
CO Colorado30Too few1 resolved

Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.

SBA 7(a) loans approved per year

2017
1
2018
6
2019
11
2020
16
2021
16
2022
8
2023
4
2024
4
2025
6

Borrower profile

The SBA's own business-age labels (5)
Ownership change32 (48%)
Existing (over 2 years)24 (36%)
New (2 years or less)9 (13%)
Unanswered4
Startup (opening with the loan)2 (3%)

Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.

SBA 7(a) lending insight

With a charge-off rate of 0.0% on 26 resolved loans, very few of this brand's SBA 7(a) loans have been charged off.

What are the risks?

Main risk: a shrinking system. Franchised outlets fell from 352 to 339 over the two years to 2023.

SBA charge-off0.0%on 26 resolved loans
Litigation14 cases
Auditor going-concern doubtNo (favorable)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Litigation case detail14 matters · Item 3

Litigation cases

The franchisor

Pending (1)

  • Norma Knuth v. Wyndham Worldwide Corporation, et al.

    pending

    Government or regulatory action · filed 2014-12-05 · Court of Queen's Bench for Saskatchewan, Judicial Centre of Regina · QBG-2650/2014

    “… (Court of Queen’s Bench for Saskatchewan, Judicial Centre of Regina, QBG-2650/2014).”Page 23 of the 2024 FDD, Item 3

    Outcome: “Plaintiff filed an Amended Statement of Claim on May 29, 2015, and a Second Amended Statement of Claim on December 14, 2015.”

Concluded (2)

  • Devayatan, LLC v. Travelodge Hotels, Inc.

    concluded

    Brought by a franchisee · filed 2014-04-08 · United States District Court, Middle District of Florida, Orlando Division · 6:14-CV-561-ORL-28-TBS

    “… (United States District Court, Middle District of Florida, Orlando Division Case No. 6:14-CV-561-ORL-28-TBS).”Page 24 of the 2024 FDD, Item 3

    Outcome: “In August 2017, the parties entered into a Settlement Agreement whereby Plaintiff agreed to pay THI the amount of $530,000.”

  • Percy Pooniwala and Dinaz Pooniwala v. Wyndham Worldwide, Inc., et al.

    concluded

    Brought by a franchisee · filed 2014-02-28 · United States District Court for the District of Minnesota (served in the Fourth Judicial District, County of Hennepin, State of Minnesota) · 0:14-cv-00778

    “… (United States District Court for the District of Minnesota, Case No. No. 0:14-cv-00778).”Page 24 of the 2024 FDD, Item 3

    Outcome: “The parties reached a settlement in August 2015 as part of which plaintiffs made payments to the Wyndham Entities in the amount of $220,000 made in monthly payments from November 2015 until April 2017 and the case was dismissed on September 25, 2015.” (page 25)

Status not stated in the filing (3)

  • TRAVELODGE HOTELS, INC., a Delaware Corporation v. DREAM LAND HOSPITALITY LLC, a Pennsylvania Limited Liability Company; NIMESH Vesuwala, an individual; and RAJAN D. VESUWALA, an individual

    Brought by the franchisor · filed 2023-02-17 · United States District Court for the District of New Jersey · 2:23-cv-00937

    “TRAVELODGE HOTELS, INC., a Delaware Corporation v. DREAM LAND HOSPITALITY LLC, a Pennsylvania Limited Liability Company; NIMESH Vesuwala, an individual; and RAJAN D. VESUWALA, an individual”Page 28 of the 2024 FDD, Item 3
  • TRAVELODGE HOTELS, INC., a Delaware Corporation v. JIAAN HOSPITALITY, INC., an Indiana Corporation; VIPUL PATEL, an individual; PRAKASH PATEL, an individual; and PRATYUSH PATEL, an individual

    Brought by the franchisor · filed 2023-02-08 · United States District Court for the District of New Jersey · 2:23-cv-00749

    “TRAVELODGE HOTELS, INC., a Delaware Corporation v. JIAAN HOSPITALITY, INC., an Indiana Corporation; VIPUL PATEL, an”Page 27 of the 2024 FDD, Item 3
  • TRAVELODGE HOTELS, INC., a Delaware Corporation v. MANTERA EQUITY, LLC, a California Limited Liability Company, and MATTHEW NAKOULA, an individual

    Brought by the franchisor · filed 2023-05-16 · The Superior Court of New Jersey, Morris County · MRS-L-000865-23

    “TRAVELODGE HOTELS, INC., a Delaware Corporation v. MANTERA EQUITY, LLC, a California Limited Liability Company, and MATTHEW NAKOULA, an individual”Page 27 of the 2024 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Pending (2)

  • Andy Au et al. v. Integrated Decisions and Systems, Inc. et al

    pending

    Brought by a third party · Wyndham Hotels & Resorts, Inc. · filed 2024-07-24 · United States District Court, Northern District of Illinois · 1:24-cv-06324

    “… (United States District Court, Northern District of Illinois, Case No. 1:24-cv-06324).”Page 23 of the 2024 FDD, Item 3

    Outcome: “Plaintiffs seek damages, including treble damages, interest, attorneys’ fees and costs, as well as injunctive relief.”

  • Hanson Dai et al. v. SAS Institute et al.

    pending

    Brought by a third party · Wyndham Hotels & Resorts, Inc. · filed 2024-04-26 · United States District Court, Northern District of California · 3:24-cv-02537

    “… (United States District Court, Northern District of California, Case No. 3:24-cv-02537).”Page 24 of the 2024 FDD, Item 3

    Outcome: “On July 15, 2024, an amended complaint was filed consolidating the claims of the Original Plaintiffs and those of Mr. Shattuck, and also adding Joel Kamisher as an additional Plaintiff and removing Choice Hotels International, Inc. as a Defendant.”

Concluded (6)

  • Jay Brodsky v. Hilton Worldwide Inc., et al.

    concluded

    Wyndham Hotels (the filing names no specific Wyndham entity) · filed 2018-08-20 · United States District Court for the District of New Jersey · 2:18-cv-13045-KM-JBC

    “… (United States District Court for the District of New Jersey, Case 2:18-cv-13045-KM-JBC).”Page 25 of the 2024 FDD, Item 3

    Outcome: “Defendants jointly settled for $7,000 payment ($1,400 as to Wyndham Hotels) to Mr. Brodsky on February 22, 2019, resulting in a dismissal of the action.” (page 26)

  • Thomas Luca, Jr. v. Wyndham Worldwide Corporation, et al.

    concluded

    Brought by a third party · Wyndham Worldwide Corporation · filed 2016-06-06 · United States District Court for the Western District of Pennsylvania · 2:16-cv-00746-MRH

    “… (United States District Court for the Western District of Pennsylvania, Case 2:16-cv-00746-MRH).”Page 25 of the 2024 FDD, Item 3

    Outcome: “The Court granted preliminary approval on October 18, 2019 and granted final approval on February 24, 2020.”

  • FFC Capital Corporation v. Wyndham Hotel Group, LLC

    concluded

    Wyndham Hotel Group, LLC · filed 2014-02-28 · Court of Common Pleas of Allegheny County, Pennsylvania · G.D. No. 14-003150

    “… (Court of Common Pleas of Allegheny County, Pennsylvania) (G.D. No. 14-003150).”Page 27 of the 2024 FDD, Item 3

    Outcome: “The parties entered into a settlement agreement on January 22, 2015, as part of which Wyndham Hotel Group made no admission of liability and paid FFC $260,000 and the case was dismissed.”

  • FTC v. Wyndham Worldwide Corporation, et al.

    concluded

    Government or regulatory action · Wyndham Worldwide Corporation · filed 2012-06-26 · United States District Court for the District of New Jersey (filed in the District of Arizona) · 13-cv-1887 (ES)(JAD)

    “… (United States District Court for the District of New Jersey, Case No. 13-cv-1887 (ES)(JAD)).”Page 27 of the 2024 FDD, Item 3

    Outcome: “The Court entered the Order and dismissed the case with prejudice on December 11, 2015.”

  • Joyce Roberts, individually and on behalf of classes of similarly situated individuals v. Wyndham International, Inc., Wyndham Worldwide Operations, Inc., Wyndham Hotels and Resorts, LLC & Does 1-10

    concluded

    Brought by a third party · Wyndham Hotels and Resorts, LLC · filed 2012-07-17 · Superior Court of the State of California, County of Santa Cruz, removed to the United States District Court, Northern District of California · RG 12639589

    “… (Superior Court of the State of California, County of Santa Cruz (RG 12639589).”Page 26 of the 2024 FDD, Item 3

    Outcome: “The Court granted final approval of the settlement and entered an order on the same, dismissing the lawsuit, on October 27, 2016.”

  • Loren Stone v. Howard Johnson International, Inc. & Does 1-10

    concluded

    Brought by a third party · Howard Johnson International, Inc. · filed 2012-02-28 · United States District Court for the Central District of California (Los Angeles) · CV. 12 1684

    “… (United States District Court for the Central District of California (Los Angeles), CV. 12 1684).”Page 26 of the 2024 FDD, Item 3

    Outcome: “The court approved the settlement and the case was dismissed on November 30, 2015.” (page 27)

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 7.0% of sales (royalty + ad fund), before your own operating costs.

Initial term20 yrs
Renewal termNo renewal right
TerritoryProtected, not exclusive
Initial training34 hrs

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)

Contract and territory detail

Allowed renewals0
Protected territoryYes
Exclusive territoryNo
Franchisor can competeYes
Who runs it (Item 15)Owner-operator not required
Right of first refusalNo
Transfer requires consentYes
Mandatory arbitrationNo
Arbitration locationMorris County, New Jersey
Governing lawNJ

Items 10 (financing), 11 (training and support)

Training and operations

Classroom training
34 hrs
Ongoing training
Required
POS system
SynXis (Sabre Hospitality) or OPERA (Oracle Hospitality)
Operating tech stack

Items 5 (initial fees) & 11 (training and support)

Franchisor support

Yes: Site selection assistance
Yes: Grand opening support

Item 20 (outlet counts) · call current owners

Franchisee contacts

Who can you call before you sign?

102 current outlets listed

Each record has a phone number and state. 2 of 102 also name a city. No franchisee names. 102 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 102 of the 339 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.

For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.

The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.

Free preview
(310) 839-••••CA
102 contacts on file
(323) 771-••••CA
(760) 256-••••CA

Frequently asked questions

How much does it cost to open a Travelodge By Wyndham franchise?

Per the 2024 FDD, the total investment to open a Travelodge By Wyndham franchise ranges from $6.1M to $10.9M, with an initial franchise fee of $35K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.

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?

There is no published franchise failure rate. What is measurable is Travelodge By Wyndham's SBA charge-off rate: 0.0% on 26 resolved loans. Put plainly: None of the 26 resolved SBA 7(a) loans to Travelodge By Wyndham owners charged off (approved since FY1991); loans approved FY2018–FY2021: 0 of 25 resolved loans charged off (0.0%); newer loans have not had time to default, so this is not a trend. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.

How many Travelodge By Wyndham franchise locations are there?

Per the 2024 FDD, Travelodge By Wyndham has 339 franchised units and 0 company-owned (339 in all). In the latest year, the number of franchised outlets fell by 1 (31 opened, 32 closed).

Is Travelodge By Wyndham a good franchise to buy?

FranchiseVerdict gives Travelodge By Wyndham an A Verdict grade (Strongest tier) with a verdict score of 74 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale (339 franchised units), legal record and transparency. Held back by unit growth (-13 franchised outlets over the two years to 2023: 352 to 339, -3.7% in total, -1.9% a year compounded). The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.

Other Lodging franchises

Similar investment first, then by grade

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.