Bottom line
- Total investment $407K – $16.3M including a $36K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 73 loans (below the industry average).
- 15 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Wingate by Wyndham unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees own and operate 3-4 star limited-service hotel properties under the Wingate by Wyndham brand, managing daily front-desk operations, housekeeping, maintenance, and guest services. Franchisees handle P&L responsibility for labor, utilities, and local marketing while paying 5.5% royalty on gross room revenue and adhering to strict brand standards and reservation system requirements.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Wingate presents caution-level risk due to anemic unit growth, material litigation exposure, zero financial transparency via Item 19, and royalty structure without performance visibility.
Score breakdown · what drove the 53 / 100 rating
- 01MINORMinimal system growth (2.6% YoY) with only 194 units suggests market saturation or brand weakness
- 02MINORNo Item 19 disclosure (Average Revenue/Net Income) prevents ROI validation and is a major transparency gap
- 03HIGHExtensive litigation history including FTC settlement, price-fixing allegations, and class actions indicates systemic compliance and governance issues
- 04MINORWide investment range ($406K–$16.3M) with no average unit economics disclosure creates uncertainty about true profitability
- 05MED5.5% royalty on gross room revenue is above mid-scale average and compounds risk without disclosed net income benchmarks
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
84 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wingate by Wyndham · FDD (2026) PDF