WaterWalk Extended Stay by WyndhamFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A WaterWalk Extended Stay by Wyndham franchise requires a total initial investment of $1.2M – $27.1M, including a $75K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.2M – $27.1M
- 25th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 11
- 18th pct Lodging
- SBA default
- N/A
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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
13 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $1.2M – $27.1M including a $75K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "Reservation System Contribution" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict D (Below Average) with a risk score of 75/100.
- 13 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
- WHG Franchisor, LLC
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- DE
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.4B prior year
Affiliated brands
- WSSI
Other brands the franchisor or its parent operates (Item 1).
Overview
About
WaterWalk Extended Stay franchisees operate hotel properties targeting long-term guests (weekly/monthly stays), managing daily housekeeping, maintenance, front-desk operations, and guest services. Franchisees handle local marketing, staffing, and compliance while paying 6% royalty to Wyndham and operating under brand standards within a 20-year term.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 2016
- FDD year
- 2026
- States available
- 8
FDD Item 7 · 2026 filing · 21 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee)not refundable | $75K | $75K | |
| Photosnot refundable | $3K | $6K | |
| Training Tuitionnot refundable | $6K | $7K | |
| Training Expensesnot refundable | $3K | $6K | |
| Market Studynot refundable | $5K | $20K | |
| Real Estate and Site Preparation | — | — | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Feesnot refundable | $500K | $2.0M | |
| Facility Constructionnot refundable | $16.0M | $20.0M | |
| Construction Contingencynot refundable | $800K | $1.0M | |
| Computer Technology Systemsnot refundable | $138K | $162K | |
| Property Management Set-Up and Installationnot refundable | $16K | $29K | |
| Residential System Set-Up and Installationnot refundable | $2K | $6K | |
| Furniture, Fixtures and Equipmentnot refundable | $1.5M | $2.0M | |
| Signagenot refundable | $50K | $100K | |
| Opening Inventorynot refundable | $495K | $501K | |
| Insurancenot refundable | $63K | $95K | |
| Grand Opening Advertisingnot refundable | $3K | $6K | |
| Liquor Licensenot refundable | $4K | $450K | |
| Pre-Opening Wagesnot refundable | $20K | $50K | |
| Miscellaneous Non-Tangible Asset Costsnot refundable | $19K | $37K | |
| Total initial investment | $19.9M | $27.1M |
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
- $1.2M – $27.1M
- Better than avg vs category
- Liquid capital req'd
- $125K – $656K
- Better than avg vs category
- Franchise fee
- $40K – $75K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $75K |
| Renewal fee | $75K |
| Inventory (initial) | $495K – $501K |
| Total fee load | 9.0% of rev |
Financial Performance
This brand's FDD disclosed "Reservation System Contribution" 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 WaterWalk Extended Stay by Wyndham Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 9.1%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
WaterWalk is a micro-brand with financial opacity, reputational litigation, and a parent company in legal jeopardy—unsuitable for risk-averse investors.
Litigation (Item 3)
5 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $10
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 75 / 100 rating
- 01MINOROnly 11 units system-wide with unknown growth trajectory indicates minimal scale and market validation
- 02MEDNo disclosed average revenue or net income data prevents ROI analysis and suggests potential underperformance
- 03MINORMultiple class action lawsuits against parent/affiliate entities for price-fixing, misleading fees, and data security breaches damage brand reputation and create operational/legal liability
- 04MINORFTC enforcement action on data security practices creates compliance risk and potential future remediation costs
- 05HIGHGoing concern status is FALSE, which may indicate financial instability at corporate level
- 06MINORMassive investment range ($1.2M–$27M) with no clarity on unit economics suggests unpredictable capital requirements
- 07MINORNo territorial protection exposes franchisees to cannibalization and direct competition from other franchisees
- 08MED6% royalty on undisclosed revenue makes it impossible to forecast profitability or payback period
- 09HIGHExtended-stay model is operationally complex but corporate litigation track record raises questions about management competency
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 |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 13 |
View Item 3 litigation summary
5 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- OPERA PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OPERA PMS
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
WaterWalk Extended Stay by Wyndham · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a WaterWalk Extended Stay by Wyndham franchise?
The total investment to open a WaterWalk Extended Stay by Wyndham franchise ranges from $1.2M – $27.1M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do WaterWalk Extended Stay by Wyndham franchise owners earn?
WaterWalk Extended Stay by Wyndham 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 WaterWalk Extended Stay by Wyndham's franchise failure rate?
SBA 7(a) loan charge-off data is not available for WaterWalk Extended Stay by Wyndham (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many WaterWalk Extended Stay by Wyndham franchise locations are there?
As of their most recent FDD filing, WaterWalk Extended Stay by Wyndham has 11 total units in the United States, including 2 franchised units and 0 company-owned units.
Is WaterWalk Extended Stay by Wyndham a good franchise to buy?
FranchiseVerdict rates WaterWalk Extended Stay by Wyndham as a D-grade franchise with a risk score of 75 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.
For franchisors
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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.