BAYMONT INN & BAYMONT INN & SUITES

Item 7 lays out the steep entry: total investment ranges from $7,598,317 to $10,549,711 for new builds or conversions, covering construction, FF&E, and pre-opening costs, with a $26,000 franchise fee. Ongoing fees hit hard at 5% royalty on gross room revenue plus 3.5% system assessment, plus $734-$1,050 monthly for PMS support—equating to about 8.5-9% total. Item 19 does disclose earnings, offering a glimpse into revenue potential for these 70-130 room properties targeting highways and universities, though variability ties to occupancy in tertiary markets. Wyndham's muscle helps, but franchisees shoulder massive upfront capital without full-service F&B to boost revenue.

System metrics reveal modest health: 547 locations as of 2024, up just 1% from 539 in 2023, with 41 projected new units signaling cautious optimism. Yet 29 terminations and 28 transfers last year hint at churn, often linked to litigation over fees, breaches, and inducement claims. SBA data shines brightest—88 loans averaging $2,235,747 with a mere 1.1% default rate—suggesting survivors thrive post-ramp-up. For deep-pocketed investors eyeing stable cash flow over hyper-growth, Baymont's low-risk SBA track record outweighs the sluggish expansion, but high barriers demand proven hospitality ops.