Wyndham Hotels and Resorts Franchise Costs, Fees & FDD

Year Business Began: 1990

Franchising Since: 1990

Headquarters: Parsippany, New Jersey

Estimated Number of Units: 295 (under the Wyndham and Wyndham Grand brand names; 9,285 across all Wyndham Hotels & Resorts, Inc. brands)

Franchise Description: Wyndham Franchisor, LLC is the franchisor. The franchisor is a subsidiary of Wyndham Hotels and Resorts, LLC, which is a subsidiary of Wyndham Hotel Group, LLC. Wyndham operates hotels under the following brands: AmericInn, Baymont Inn & Suites, Days Inn, Dazzler Hotels, Dolce Hotels and Resorts, Echo Suites, Esplendor Boutique Hotels, Hawthorn Suites, Howard Johnson, La Quinta, Microtel Inn & Suites Ramada & Ramada Encore, Super 8, The Registry Collection Hotels, The Trademark Hotel Collection, Travelodge, TRYP by Wyndham, Vienna House, WaterWalk, Wingate by Wyndham, Wyndham Alltra, Wyndham Hotels and Resorts, Wyndham Garden, and Wyndham Grand.

The franchisor offers, sells and supports franchises for the establishment and operation of Wyndham “chain” guest lodging facilities (a “chain facility” or “facility”), which offer customers a full service experience in primary destinations, include restaurant, bar (where legally permitted), fitness facilities and, in business locations, business center and meeting and event facilities that are flexible for large and small meetings. Wyndham Resort properties also offer amenities such as golf, tennis, beaches and/or spas.
Training Overview: The franchisor’s hospitality operations training team offers a variety of mandatory and optional training programs, workshops, online training and other training resources. All personnel employed at the facility in the positions the franchisor designates to receive training must attend and successfully complete the initial training program and other training programs the franchisor may require. The franchisor will provide training to the general manager in its Hospitality Management Program (HMP). This program consists of approximately 34 hours of training. In addition to HMP Training, each general manager is required to take a human trafficking prevention training course. Each general manager is also required to take the franchisor’s Count on Us training course. If the facility is a new construction or conversion hotel, franchisees are required to participate in opening training. This training is conducted on site at the facility anywhere from two weeks prior to, or up to 90 days after, the facility’s opening date. The franchisor may hold a new owner orientation for franchisees who have not previously owned a chain facility, or any hotel licensed by its lodging affiliates. The franchisor may require franchisees, their GM and/or hotel staff to participate in a remedial customer experience assessment or training if the hotel receives certain scores on inspections or customer feedback responses. All facilities must participate in a training program on the franchisor’s customer loyalty program, Wyndham Rewards. For continuing education, the franchisor offers a comprehensive curriculum of hotel operations training. The franchisor requires general managers to attend an annual national leadership conference. Certain personnel employed at the facility may be required to attend periodic meetings held to address matters of general interest to the system.

Territory Granted: The franchise is for the development and operation of a single chain facility at a specified location. Franchisees will not receive an exclusive territory. Franchisees may face competition from other chain facilities, other hotels operating under the Wyndham tradename, franchisees of the franchisor’s lodging affiliates, from outlets that an affiliate of the franchisor owns or manages, or from other channels of distribution or competitive brands that an affiliate of the franchisor controls. When business circumstances warrant, however, the franchisor may in its sole discretion agree to some measure of territorial protection after considering various relevant factors. If the franchisor agrees to territorial protection, it will not open or license anyone else to open a system hotel within a defined area for a certain period of time. Territorial protection would not include protection from (i) the establishment of hotels, timeshares, vacation or resort properties or other lodging facilities under other brands that the franchisor or its affiliates own, manage or franchise, or (ii) the conversion of another hotel to a chain facility as a result of an acquisition.

Obligations and Restrictions: Franchisees do not have to participate personally in the direct operation of the facility although the franchisor recommends that they do so. If franchisees do not personally manage the hotel, they must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities to manage the facility. The manager must successfully complete the training program. The franchisor reserves the right to require franchisees to retain a third-party manager or management company it approves if franchisees do not have significant experience managing a hotel or are receiving a development incentive. Franchisees may not offer goods or services in the facility that the franchisor does not authorize. Franchisees must operate the hotel in strict conformity with the standards the franchisor specifies in the Franchise Agreement, the manual, or otherwise. Franchisees must use the facility premises solely for the operation of a chain facility.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years for new construction; 15 years for conversions and transfers. There are no renewal rights. Any continuation of the hotel’s affiliation with the system is subject to the execution and delivery of the then current form of Franchise Agreement, which may differ materially from the previous agreement.

Financial Assistance: The franchisor may defer payment of the initial franchise fee, if it determines that business circumstances warrant. The deferral is usually for a short term such as 90 days, or until the facility opens as a member of the chain facility, whichever occurs first. The franchisor also may offer certain “development incentives” for new construction and conversion chain facilities for certain minority groups (e.g., potential women and Black owners). The incentives are based on various factors and are determined in the franchisor’s sole discretion. Except as specified, the franchisor does not offer or provide any financing arrangements for system franchisees, either directly or indirectly.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee (inclusive of Application Fee)	$150,500	$150,500
Photos	$3,560	$9,860
Training Tuition	$6,250	$6,250
Training Expenses	$1,200	$2,950
Market Study	$12,000	$50,000
Real Estate and Site Preparation	Varies
Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees	$1,569,715	$5,871,240
Facility Construction	$41,210,033	$73,456,020
Construction Contingency	$2,060,502	$3,672,801
Technology Systems	$199,047	$201,047
Property Management Set-Up and Installation	$19,400	$29,300
Furniture, Fixtures and Equipment	$3,818,596	$4,046,638
Signage	$35,000	$150,000
Opening Inventory	$993,215	$1,055,667
Insurance	$102,500	$305,000
Grand Opening Advertising	$50,000	$450,000
Liquor License	$3,500	$450,000
Pre-Opening Wages	$702,343	$2,214,182
Miscellaneous Non–Tangible Asset Costs	$54,363	$81,408
Additional Funds for First 3 Months of Operation	$927,428	$2,439,267
ESTIMATED TOTAL*	$51,919,152	$94,642,130

*The estimated initial investment range is for a 301-room new construction Wyndham Hotel facility. The range does not include the cost of purchasing or leasing real estate. Please see FDD for more details, including conversion estimates.

Other Fees

Type of Fee	Amount
General Fees
Royalty Fee	5% of gross room revenues (GRR).
Marketing and Global Sales Fee	3% of GRR.
Taxes	Amount assessed by federal, state and local tax authorities.
Relicense Fee (Transfers)	Currently, equal to the greater of $50,000 or $500 per room.
Photos, Design and Improvements Service Fees
Photos	Currently, $3,560 for standard photo package.
Expansion Fee	Then-current initial franchise fee per room times the number of rooms proposed to be added.
Custom Interior Design Review Fee	Currently, $6,000.
Property Improvement Plan Preparation Fee	Currently, $1,500 per request.
Training and Conference Fees
General Manager Certification	Currently, $2,250.
General Manager Certification Additional Attendee Fee	Currently, $1,400.
On-Site Opening Training	The tuition and facilitator costs for opening training are included in the continuing education fee.
New Owner Orientation	Currently, no fee for first attendee and $1,000 for each additional attendee.
Remedial Training	Currently, up to $1,250.
Product Quality Training	Onsite: $1,500 for 1 day; up to $3,000 for 2 to 5 days; and up to $5,000 for 6 to 10 days.
Continuing Education	Currently, $4,000 per year.
Chain Conference Fee	Currently $2,000 for the first attendee and $1,750 for each additional attendee.
Job Posting Fee	Currently, $100 per posting for a 30-day placement.
Sales, Marketing and Distribution Program Fees
GDS Fees	$7.98 per reservation.
Third Party Channel Fee	$2.48 per reservation.
Internet Booking Fees	$2.48 per reservation.
Agency Commissions	Up to 20% of GRR.
Agency Commissions Service Charge	1.5% of commissionable revenue.
Member Benefits Commissions	Up to 10% of GRR.
Member Benefits Commissions Service Charge	Up to 1.5% of commissionable revenue.
Digital Pay-For-Performance (PFP) Commission	Up to 10% of GRR.
Everyone Sells Group Referrals Program	10% of commissionable revenue.
Global Translation Fee	Currently, $200 per language
Signature Reservation Service Fee	Currently, 3.5% of the amount of GRR booked.
Standard Revenue Management Services Fee	Currently, 0.75% of GRR with a minimum of $645 and maximum of $1,395 per month.
Premium Revenue Management Services Fee	Currently, 1.00% of GRR with a minimum of $1,450 and maximum of $2,450 per month (except $3,500 per month max for facilities with an annual GRR of $3,000,000 or more.).
Premium Plus Revenue Management Services Fee	Currently, $5,425 per month.
Brand Offer Pages	$2,500 per year.
STR Report Fee	$750 per year.
Remote Sales Service	$1,400 per month.
Groups360 Booking Fee	Currently, 6% of GRR booked via the Groups360 platform.
Guest Loyalty and Satisfaction Fees
Loyalty Program Charge	4.25% - 5.5% of all amounts on which members earn points or other program currency.
Loyalty Missed Valid Enrollment Fee	Up to $1,200 per calendar quarter (or $400 per month). Currently, $750 per calendar quarter (or $250 per month).
Loyalty Member Services Administration Fee	Currently $50 per complaint.
Customer Care Fee	Resolution costs.
Wyndham Response Service	Currently, $0 - $15 per response.
Best Rate Guarantee Processing Fee	Currently, $195 per instance.
Property Management and Technology Fees
OPERA PMS Set-Up and Implementation Fee	Currently, $19,400 - $29,300 depending on which OPERA system the franchisee chooses, plus interface costs ($525 – $3,050).
OPERA PMS Monthly Support and Service Fee	Currently, $734 - $1,050 per month.
OPERA Cloud Premium PMS Monthly Support and Service Fee	Currently, $13.25 per room/per month.
Premium Automated Revenue and Rate Management Fees (RevIQ)	Currently, $28 per month.
Mobile Operations Program	Currently, $0.60 per guestroom per month.
Emergency Safety Device	Currently, $35 per month.
Preventative Maintenance	Currently, up to $1,500 per year.
Remedies, Non-Compliance and Other Fees
Opening Date Extension Fee	$10,000
Interest	Lesser of 1.5% per month or the maximum rate permitted by law.
Returned Check Fee	Currently, $100 for each occurrence.
Paper Check Fee	$160 processing fee per each occurrence.
Reconnection Fee	Currently, $4,000.
Audit Costs	Costs and expenses of audit.
Quality Assurance Inspection Fees	Currently, $1,400 for initial inspection. Currently, $2,500 for the first failure, $3,000 for the second failure, and $3,500 for the third and any additional failures.
PIP Reinspection Fee	Currently, $2,500.
Three Party Agreement / Comfort Letter Fee	Currently, $1,000 per request.
Indemnification	Will vary under circumstances but likely to include cost of defending and resolving indemnified claims.
Dispute Resolution Costs	Costs, expenses, reasonable attorneys’ fees.
Condemnation Payments	Royalties and marketing and global sales fees for one year after notice of condemnation or to the date of condemnation, whichever is longer.
Liquidated Damages	Greater of $3,000 per guest room or monthly average royalty fees and marketing and global sales fees computed over the prior 12 months, multiplied by 36. Differs if there are fewer than 36 months remaining in the unexpired term at the date of termination.
De-Identification Fee	$2,000 per day.

The above information has been compiled from the FDD of Wyndham Hotels and Resorts. Year of FDD: 2025.
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