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D75/100FDD 2026

TRYP by Wyndham — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

14 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
14
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
75 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
New Jersey
State whose law governs disputes — relevant if you're not based there

What drove the 75/100 rating

Risk Score Breakdown

  1. 01MINORExtremely high investment range ($18.9M–$32.7M) with minimal unit growth (only 9 units at 12.5% YoY) suggests poor ROI trajectory and high barrier to entry relative to system size
  2. 02MEDNo disclosed average revenue or net income (missing Item 19) prevents validation of profitability claims; combined with high royalty rate (5% GRR) makes financial performance opaque
  3. 03HIGHMultiple active litigation exposures including FTC settlement for cybersecurity breaches, class actions for price-fixing via revenue management software, fraudulent fee misrepresentation, and surreptitious recording of calls—indicates systematic compliance and trust issues
  4. 04HIGHGoing Concern = False signals potential financial instability at corporate level, raising questions about franchise support infrastructure and long-term viability
  5. 05MINOROnly 9 franchised units is extremely small for a major hotel brand, suggesting weak franchisee recruitment/retention and possible market rejection of the model

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.