WoodSpring Suites
Formerly known as Choice Hotels International
Bottom line
- Total investment $8.8M – $14.6M including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.1M/year (median $2.1M). Estimated payback in 10.1 years.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 172 loans (below the industry average).
- 138 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 WoodSpring Suites unit return on the cash you put in?
Unlevered ROIC · per unit
2%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 WoodSpring Suites units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.6M purchase
Total debt
$7.7M
SBA $4.8M + senior + seller note
Overview
About
WoodSpring Suites franchisees operate extended-stay hotel properties targeting budget-conscious travelers. Day-to-day operations include housekeeping, front desk management, maintenance, marketing, and revenue optimization of typically 120-150 room units, with responsibility for all local P&L management while paying 6% of gross room revenues in royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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
WoodSpring Suites presents high-risk profile due to extensive franchisor-franchisee litigation, unprotected territory, marginal returns on massive capital requirement, and evidence of systemic franchisee financial distress.
Score breakdown · what drove the 56 / 100 rating
- 01HIGHAggressive litigation portfolio including class actions, breach of contract suits, and 124 royalty collection actions in one year indicating systemic franchisor-franchisee conflict
- 02MINORUnprotected territory with no exclusivity despite $8.8M-$14.6M investment, creating direct competition risk from same-brand properties
- 03MINORHigh capital requirement ($8.8M-$14.6M) against modest average net income ($1.16M) yields marginal ROI of ~13% before debt service, taxes, and contingencies
- 04HIGHLitigation disclosure reveals pattern of discriminatory practice allegations and destination marketing fee disputes suggesting franchisor governance issues
- 05MINOR124 collection actions by franchisor in single fiscal year signals widespread franchisee financial distress and payment default problems
- 06HIGH10.9% YoY unit growth masks potential underlying profitability issues given litigation severity and collection action volume
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
32 numbers
One-time purchase · CSV download · Validation questions included
FDD download
WoodSpring Suites · FDD (2026) PDF