FranchiseVerdict
Wingate by Wyndham logo
A52/100FDD 2026

Wingate by Wyndham — Litigation & Risk

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

Back to overview

Elevated Risk

15 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
15
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
52 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
38
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$138.5M
Avg loan size
$3.6M
Participating lenders
25

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 52/100 rating

Risk Score Breakdown

  1. 01MINORMinimal system growth (2.6% YoY) with only 194 units suggests market saturation or brand weakness
  2. 02MINORNo Item 19 disclosure (Average Revenue/Net Income) prevents ROI validation and is a major transparency gap
  3. 03HIGHExtensive litigation history including FTC settlement, price-fixing allegations, and class actions indicates systemic compliance and governance issues
  4. 04MINORWide investment range ($406K–$16.3M) with no average unit economics disclosure creates uncertainty about true profitability
  5. 05MED5.5% royalty on gross room revenue is above mid-scale average and compounds risk without disclosed net income benchmarks

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.