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LA QUINTA INN & SUITES
La Quinta Inn & Suites franchises operate high-quality, mid-priced, limited-service guest lodging facilities offering overnight accommodations, complimentary breakfast, fitness centers, swimming pools, and amenities like Bright Side Market. Franchisees construct and operate standardized hotels (typically 100-110 rooms) under the La Quinta by Wyndham brand, adhering to specific designs, standards, and systems provided by the franchisor. The target market includes business and leisure travelers in the competitive upper mid-market segment of the hospitality industry.
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Franchise Costs
5.5% royalty (increasing to 6% after 24 months) + 3.5% system assessment + $2,300-$3,000/mo fixed (PMS $734-$1,450, remote sales $1,400, MOP $66 for 110 rooms, continuing education $100).
Financial Performance
Item 19 Financial Performance
Data Based On: 377 Qualified Chain Facilities in the United States and Canada for the period from January 1, 2024 through December 31, 2024, that opened before January 1, 2023 and achieved a 'Comparable Social Review Score'. All facilities in Item 19 were operated by franchisees.
* The document provides financial performance representations related to Average Daily Room Rate (ADR), Occupancy Rate, and Revenue Per Available Room (RevPAR). RevPAR is defined as 'gross room revenue per available room' and is presented with average values of $78.27 (for Qualified Chain Facilities) and $81.21 (for Del Sol Prototype B Facilities). These are per-room metrics and do not represent the 'average gross revenue per franchise unit' as typically expected (which falls in the $100K - $10M range). The document also provides 'Central Reservation System Contribution' and 'Wyndham Rewards Contribution' as percentages, not absolute dollar amounts of revenue or profit. No data was found for total gross revenue per franchise unit, median gross revenue, revenue quartiles, net income, net profit, EBITDA, or any expense information that would allow for profit estimations.
Extracted Item 19 Section
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Unlock financial performance dataLA QUINTA INN & SUITES Franchise Analysis
Picture checking into a midscale hotel chain backed by Wyndham, where standardized designs promise steady guest traffic from business travelers. Item 19 lays bare revenue performance across outlets, and a deep SBA loan history hints at franchisee resilience amid industry pressures. Yet with terminations in the mix and a slight dip in footprint, does the math stack up for your multimillion-dollar build?
Item 7 details the hefty $12,809,423-$17,222,029 startup range, covering construction for 100-110 room properties, plus $55,000 franchise fee. Ongoing fees hit hard: 5.5% royalty jumping to 6% after 24 months, 3.5% system assessment, and fixed monthly charges like $2,300-$3,000 for PMS ($734-$1,450), remote sales ($1,400), MOP ($66 per 110 rooms), and education ($100). Item 19 discloses revenues, showing viability in upper mid-market lodging with complimentary breakfasts and pools drawing repeat stays, though profit margins hinge on occupancy in competitive spots. SBA stats shine: 310 loans averaging $3,578,873 with just 0.7% default rate, far below category norms signaling strong operator track record.
System size shrank 2% from 899 to 884 locations between 2023-2024, with 29 terminations raising flags on sustainability. Litigation clusters around franchisor suits for breach and unpaid fees against players like Shin Hospitality, countered by franchisee claims of misrepresentation and bad faith—watch for operational support gaps. For deep-pocketed investors eyeing hospitality, low defaults offset contraction risks, but verify local RevPAR potential before committing; this isn't a quick-flip but a long-haul real estate play.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How LA QUINTA INN & SUITES Compares
Key Insights
- Higher investment than 85% of Hotels franchises
- #3 largest franchise system in Hotels
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
LA QUINTA INN & SUITES Current | $12.8M – $17.2M | $55K | 5.5% | 884 |
| SUPER 8 | $4.7M – $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M – $9.4M | $35K | 5.5% | 1,235 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 596 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
| TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, | $6.1M – $11.0M | $35K | 5.0% | 328 |
Hotels Average 34 franchises | $8.7M – $22.2M | $48K | 5.3% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+33 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for LA QUINTA INN & SUITES franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
310 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
1,050 franchisee contacts on file from official FDD filings.
1,050 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily breach of contract and fee collection disputes initiated by the franchisor against franchisees (Shin Hospitality and Alsbury Hospitality), with franchisee counterclaims alleging violations of franchise laws, breach of good faith, and misrepresentations.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a LA QUINTA INN & SUITES franchise ranges from $12,809,423 to $17,222,029. This includes a franchise fee of $55,000. Ongoing royalty fees are 5.5% of gross sales.
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