Bottom line
- Total investment $448K – $18.5M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
- 13 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 Wyndham Garden unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees operate 3-4 star garden-style hotels under the Wyndham brand, managing day-to-day operations including housekeeping, front desk, maintenance, and guest services. They are responsible for marketing, staffing, and maintaining brand standards while paying 5% royalties on gross room revenues to Wyndham.
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 · 29 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
Wyndham Garden presents elevated risk due to active litigation, undisclosed financial metrics, minimal unit growth, and historical operational compliance issues that obscure true franchisee profitability potential.
Score breakdown · what drove the 56 / 100 rating
- 01HIGHActive litigation including breach of contract and class action price fixing claims creates legal and financial uncertainty
- 02MEDExtreme wide investment range ($448K-$18.5M) with no disclosed average revenue or net income prevents realistic ROI modeling
- 03MINORStagnant unit growth of only 1.6% YoY indicates system maturation or contraction; 65 units is small for a major brand
- 04MINORNo protected territory means franchisees compete directly with each other and brand's own corporate locations
- 05HIGHHistory of consumer fraud, privacy, and cyberattack settlements suggests operational/compliance issues affecting brand reputation
- 06MEDMissing Item 19 financial performance data is a major red flag for evaluating investment viability
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
79 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wyndham Garden · FDD (2024) PDF