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B65/100FDD 2026

Wyndham Grand — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

16 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
16
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
65 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

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

Total 7(a) loans
1
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$4.9M
Avg loan size
$4.9M
Participating lenders
1

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
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

What drove the 65/100 rating

Risk Score Breakdown

  1. 01MEDOnly 10 units system-wide with minimal growth (11.1% YoY = 1 unit added) indicates weak franchisee demand and limited scalability
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of unit economics and profitability claims
  3. 03MEDMultiple active class action lawsuits regarding price fixing and undisclosed fees create brand reputation risk and potential franchisee liability exposure
  4. 04MINORUnprotected territory allows Wyndham to cannibalize franchisee revenues by placing competing units in same market
  5. 05MINOR5% royalty on gross revenues (not net) means franchisees pay during unprofitable periods, amplifying cash flow vulnerability
  6. 06HIGHPending litigation regarding breach of contract suggests franchisor-franchisee relationship deterioration and enforcement disputes
  7. 07MINORFTC settlement history for cyberattacks raises data security and compliance concerns for hospitality operators

Severity inferred from FDD text — not a regulatory or legal classification

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.