Travelodge By Wyndham Franchise Cost & 2024 FDD Data
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.
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
Quick verdict · vs Lodging median
Top edge: green = better than the Lodging median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
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
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.
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.
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.
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).
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
| Line item | Low | High | |
|---|---|---|---|
| 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
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
Technology feesThe filing's detailPMS 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?
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?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
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.
Item 7 midpoint of $6.1M to $10.9M
Item 7's $116K to $177K additional funds are already in the total
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.
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.
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
Each rank is among the Lodging brands that report that figure (the count is under each bar).
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.
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.
- AmericInn (grade A)
- Arise Suites Extended Stay by Wyndham (grade B)
- Baymont Inn & Suites (grade A)
- Days Inn (grade B)
- Dazzler Select (grade C)
- ECHO Suites Extended Stay by Wyndham (grade B)
- Hawthorn Extended Stay by Wyndham (grade A)
- Howard Johnson By Wyndham (grade A)
- La Quinta by Wyndham (grade A)
- Microtel Inn & Suites by Wyndham (grade A)
- Ramada (grade C)
- Registry Collection Hotels (grade C)
- Super 8 By Wyndham (grade A)
- TRYP by Wyndham (grade B)
- Trademark Collection by Wyndham (grade A)
- WaterWalk Extended Stay by Wyndham (grade B)
- Wingate by Wyndham (grade A)
- Wyndham Garden (grade B)
- Wyndham Grand (grade B)
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).
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
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
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2018 | 5 | 0 | Too few |
| 2019 | 7 | 0 | Too few |
| 2020 | 7 | 0 | Too early |
| 2021 | 6 | 0 | Too early |
Source and method
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
| Loans | Volume | Charge-off |
|---|---|---|
| GBank | ||
| 13 | $27.2M | Not on file |
| Embassy National Bank | ||
| 5 | $10.5M | Not on file |
| First Western SBLC, Inc | ||
| 3 | $4.8M | Not on file |
| Celtic Bank Corporation | ||
| 3 | $6.7M | Not on file |
| Millennium Bank | ||
| 3 | $3.0M | Not 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)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| CA California | 12 | 0 | Too few5 resolved |
| GA Georgia | 8 | 0 | Too few3 resolved |
| FL Florida | 5 | 0 | Too few1 resolved |
| AZ Arizona | 4 | 0 | Too few1 resolved |
| MI Michigan | 4 | 0 | Too few0 resolved |
| NM New Mexico | 4 | 0 | Too few1 resolved |
| SC South Carolina | 4 | 0 | Too few2 resolved |
| TX Texas | 4 | 0 | Too few1 resolved |
| WA Washington | 4 | 0 | Too few2 resolved |
| CO Colorado | 3 | 0 | Too 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
Borrower profile
The SBA's own business-age labels (5)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
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.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 74/100 (category median 65); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Weighs on it, weakest dimension-13 franchised outlets over the two years to 2023 (352 to 339, -3.7% in total, -1.9% a year compounded); turnover 9.4%
- Scale Helps339 franchised units; franchising since 1996
- Legal Helps6 matters naming the franchisor among the Item 3 matters we list (1.8 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+10 points)SBA loan record: the SBA charge-off rate (0.0% on 26 resolved loans) is under 2%, a range the score counts in a brand's favour, so it added 10 points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
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)
The revenue figures are in the Franchisor tab, under The franchisor.
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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Restricted to system-approved products: Yes
Litigation case detail14 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Norma Knuth v. Wyndham Worldwide Corporation, et al.
pendingGovernment 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.
concludedBrought 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.
concludedBrought 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
pendingBrought 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.
pendingBrought 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.
concludedWyndham 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.
concludedBrought 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
concludedWyndham 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.
concludedGovernment 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
concludedBrought 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
concludedBrought 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.
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 renewals | 0 |
|---|---|
| Protected territory | Yes |
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | Owner-operator not required |
| Right of first refusal | No |
| Transfer requires consent | Yes |
| Mandatory arbitration | No |
| Arbitration location | Morris County, New Jersey |
| Governing law | NJ |
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
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.
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.
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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.