WoodSpring Suites Franchise Cost, Revenue & Review 2026
- Investment
- $8.8M – $14.6M
- Disclosed sales
- $2.1M
- gross sales, not profit
- SBA charge-off
- Limited · 11 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
WoodSpring Suites is a Choice Hotels extended-stay franchise offering budget-friendly rooms with kitchens for weekly and monthly guests. Franchisees own and operate individual properties, running rooms, housekeeping, and revenue management.
FranchiseVerdict summary · 2026
A WoodSpring Suites franchise requires a total initial investment of $8.8M – $14.6M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $2.1M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $8.8M – $14.6M
- 40th pct Lodging
- Avg gross sales
- $2.1M
- 1st pct Lodging
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 284
- 57th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $8.8M – $14.6M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.1M/year (median $2.1M), with an estimated 6% cash-on-cash return (based on Gross Operating Profit). Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 60/100 (higher is better).
- GROWTHPositive: net +28 franchised outlets in the latest year (28 opened, 0 closed) (Item 20).
- LEGAL138 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
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- WoodSpring Hotels Franchise Services LLC (formerly Value Place, 2004-2015)
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- Delaware
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.6B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 8
11 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.
- ASCEND HOTEL COLLECTIONA
- Clarion / Clarion PointeB
- Country Inn & Suites by RadissonB
- Econo LodgeB
- Everhome SuitesB
- MainStay SuitesA
- Park Inn by RadissonD
- RODEWAY INNB
- Radisson IndividualsC
- Sleep InnB
- Suburban StudiosB
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2026
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 32% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Feenot refundable | $50K | $50K | |
| Real Estate | — | — | |
| Construction (excluding soft costs) | $7.7M | $12.6M | |
| Furniture, Fixtures, and Equipment (FF&E) | $715K | $822K | |
| Feasibility/Market/Environmental Impact Studies | $3K | $35K | |
| Professional Design Services | $200K | $450K | |
| Mandatory On-Premises Signs | $20K | $100K | |
| Insurance | $45K | $165K | |
| Brand in a Box | $12K | $30K | |
| Training (Travel and Living Expenses While Training) | $3K | $10K | |
| Sales and Marketing Materials and other Pre-Opening Costs - 3 months | $35K | $60K | |
| Permits, Licenses and Government Fees | — | — | |
| Interior Design Waiver Fee | $0 | $20K | |
| Architectural Design Review & Construction Services | $0 | $20K | |
| Construction Advisory Services Agreement | $0 | $20K | |
| Additional Funds - 6 month period | $30K | $200K | |
| Revenue Management Setup and Training Fee | $3K | $5K | |
| Total initial investment | $8.8M | $14.6M |
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
- $8.8M – $14.6M
- Middle of category vs category
- Liquid capital req'd
- $30K – $200K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 14.6%
- vs 9–13% typical
- Payback period
- 18.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $6 |
| Transfer fee | $60K |
| Renewal fee | $60K |
| Total fee load | 14.6% of rev |
At 14.6% total fee load, roughly $313K per year goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 53% above the lodging norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for WoodSpring Suites until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$11.8M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $1.2M as Gross Operating Profit. This is a disclosed figure, not our estimate — we publish no modelled profit for WoodSpring Suites.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one WoodSpring Suites unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $2.1M
- Per unit, per year
- Median gross sales
- $2.1M
- Avg gross operating profit
- $1.2M
- Reported as Gross Operating Profit in FDD Item 19
- Cash-on-cash
- 5.5%
- Based on Gross Operating Profit / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 176 outlets
- vs category median 98
- Range (low → high)
- $901K→$3.7MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 0 / 10 · above
Compared against 175 Lodging brands
Revenue is only 0.2x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.1M/year in gross sales. Revenue-to-investment ratio: 0.2x.
Fee burden
Total ongoing fee load of 14.6% — above the Lodging median of 8.5%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 34.0% CAGR over 3 years across 284 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How WoodSpring Suites Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 284
- Opened
- 28
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +34.0%
- Net unit change over 3 years
- 3-yr CAGR
- +34.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Termination rate
- 0.9%
- Franchisor-initiated terminations
- Ceased ops
- 0.9%
- Units that stopped operating
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 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.
Available to sell in · Item 12
- California
- Washington
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
31 current owners across 19 states.
- TX 5
- KS 4
- FL 2
- IN 2
- LA 2
- MD 2
- NY 2
- AL 1
- AZ 1
- GA 1
- IL 1
- MI 1
- +7 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $33.3M
- Median loan
- $3.0M
- average
- Charge-off rate
- Limited · 11 loans
- Limited SBA coverage: 11 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 11 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Six pending matters: (1) Knuth v. Radisson class action re undisclosed destination marketing fees in Canada (seeking $403M); (2) Jai Sai Baba v. Choice/CHOC - RICO/antitrust/civil rights claims by ~90 franchisees, stayed pending arbitration; (3) T&T Management v. Choice/Country Inn - breach of license agreement, dismissed and on appeal; (4) CS Anaheim Hotel Investments v. Choice - fraud/rebate scheme allegations, compelled to arbitration; (5) Proulx v. Orsini Bros Inns - Ontario class action re misleading hotel fees; (6) Gurpreet Kaur v. Choice - civil rights/RICO claims by individual franchisee.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures are from the audited consolidated financial statements of Choice Hotels International, Inc. (the franchisor and parent) for the year ended December 31, 2025, presented in thousands and converted to whole US dollars. WoodSpring Suites is a Choice brand; there is no separate franchisor-shell balance sheet. Balance sheet reconciles: total liabilities 2,736,974K + total shareholders' equity 181,229K = total assets 2,918,203K. Total revenues include $616.2M of reimbursable-cost revenue from franchised/managed properties; core franchise and management fees were $673.2M.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 60 / 100 verdict
- 01MINORSix pending suits including $403M class action and franchisee RICO/antitrust
- 02HIGHLitigation count normal relative to large parent system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 14.6% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory sizeℹ | site-specific only; no exclusive territory granted (limited preferred region possible at franchisor discretion) |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 138 |
View Item 3 litigation summary
Six pending matters: (1) Knuth v. Radisson class action re undisclosed destination marketing fees in Canada (seeking $403M); (2) Jai Sai Baba v. Choice/CHOC - RICO/antitrust/civil rights claims by ~90 franchisees, stayed pending arbitration; (3) T&T Management v. Choice/Country Inn - breach of license agreement, dismissed and on appeal; (4) CS Anaheim Hotel Investments v. Choice - fraud/rebate scheme allegations, compelled to arbitration; (5) Proulx v. Orsini Bros Inns - Ontario class action re misleading hotel fees; (6) Gurpreet Kaur v. Choice - civil rights/RICO claims by individual franchisee.
Items 10, 11
Training & Operations
- Classroom training
- 51 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
31 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a WoodSpring Suites franchise?
The total investment to open a WoodSpring Suites franchise ranges from $8.8M – $14.6M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do WoodSpring Suites franchise owners earn?
According to Item 19 of the WoodSpring Suites FDD, the average gross sales per unit is $2.1M. The median is $2.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns WoodSpring Suites?
WoodSpring Suites is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the WoodSpring Suites FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the WoodSpring Suites FDD and qualifies whose outlets they describe.
What is WoodSpring Suites's franchise failure rate?
SBA 7(a) loan charge-off data is not available for WoodSpring Suites (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 WoodSpring Suites franchise locations are there?
As of their most recent FDD filing, WoodSpring Suites has 284 total units in the United States, including 284 franchised units and 0 company-owned units. 28 new units were opened in the latest reporting year.
Is WoodSpring Suites a good franchise to buy?
FranchiseVerdict rates WoodSpring Suites as a B-grade franchise with a verdict score of 60 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent WoodSpring Suites, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.