Bottom line
- Total investment $1.6M including a $50K 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 65/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- 16 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 Grand unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Overview
About
Franchisees operate upscale hotel properties under the Wyndham Grand brand, managing day-to-day operations including housekeeping, front desk, guest services, and maintenance while adhering to brand standards. They generate revenue primarily from room bookings while paying 5% of gross room revenues as royalties to Wyndham, regardless of profitability. Property management requires significant capital investment in real estate, furnishings, and staff.
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 · 9 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
A micro-franchise system with litigation overhang, zero financial transparency, minimal growth trajectory, and unprotected territories presents elevated risk of unit underperformance and franchisor disputes.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 10 units system-wide with minimal growth (11.1% YoY = 1 unit added) indicates weak franchisee demand and limited scalability
- 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of unit economics and profitability claims
- 03MEDMultiple active class action lawsuits regarding price fixing and undisclosed fees create brand reputation risk and potential franchisee liability exposure
- 04MINORUnprotected territory allows Wyndham to cannibalize franchisee revenues by placing competing units in same market
- 05MINOR5% royalty on gross revenues (not net) means franchisees pay during unprofitable periods, amplifying cash flow vulnerability
- 06HIGHPending litigation regarding breach of contract suggests franchisor-franchisee relationship deterioration and enforcement disputes
- 07MINORFTC settlement history for cyberattacks raises data security and compliance concerns for hospitality operators
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Wyndham Grand · FDD (2026) PDF