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FranchiseVerdict

How Much Does a WoodSpring Suites Franchise Cost?

Data from the 2026 Franchise Disclosure Document

Investment Summary

Total Investment

$8.8M – $14.6M

Franchise Fee

$50K

Royalty

6.0%

Ad Fund

2.5%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for WoodSpring Suites is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a WoodSpring Suites franchise requires a total investment of $8.8M – $14.6M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $30K to $200K.

Ongoing Costs

Beyond the initial investment, WoodSpring Suites franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 2.5% of gross sales. There is also a technology fee of $6.

Net Worth & Liquid Capital Requirements

WoodSpring Suites requires working capital of $30K – $200K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

According to WoodSpring Suites's Item 19 financial performance representation:

$2.1MAvg. Gross Sales

Median gross sales: $2.1M

This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.

How Do Banks View WoodSpring Suites?

SBA Loans Issued

11

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. WoodSpring Suites has 11 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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