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AStrongest tier68/100FDD 2026

Wingate Inns: Litigation & Risk

Lodging · 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)
None
Franchisor or officer bankruptcy
Verdict score
68 / 100
FranchiseVerdict composite · higher is better
Rating
A
A / B / C / D / F verdict grade

7(a) FOIA data · FY2020–present

SBA Loan Performance

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

Total 7(a) loans
30
Government-backed loans issued
Charge-off rate
0.0%
vs 16% franchise average
5-yr charge-off rate
N/A
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$71.0M
Avg loan size
$2.4M
Participating lenders
11

FDD Items 5, 6 & 17: What You Give Up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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

Extracted from FDD Item 3

Litigation Detail

1 pending case against the franchisor (Canadian class action re destination marketing fees); 7 pending cases against parents/affiliates (antitrust/price-fixing suits re revenue management software, resort/hotel fee class actions, a breach-of-contract dispute, and a suit vs LuxUrban involving bankrupt counterparties); 2 resolved cases against the franchisor (a $575,000 settlement received from defendants in a NJ breach-of-contract suit, and a franchisee fraud/rescission suit settled in 2016); 4 resolved cases against parents/affiliates (resort-fee/TCCWNA class settlement, a $7,000 antitrust settlement, a call-recording privacy class settlement, and an FTC data-security consent order with no monetary relief).

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.