Loading FDD preview...
Download this + 1,700 other FDDs · One-time purchase
1,700+ FDDs structured for franchise professionals
We extract fees, Item 19 financials, franchisee contacts, SBA default rates, litigation, and outlet data from every FDD — so you can compare brands in minutes, not months. Used by multi-unit operators, consultants, and franchise development teams.
MICROTEL INN & SUITES BY WYNDHAM
Microtel Inn & Suites by Wyndham offers franchises for operating all-new construction economy/budget hotels featuring modern accommodations, compact guest rooms and/or one-room suites, and affordable room rates. Franchisees use the Microtel system, trademarks, and distinctive architectural design with efficient common areas and flexible floor plans to provide clean, comfortable lodging with interior corridor access. The business model targets budget-conscious travelers seeking consistent, value-oriented limited-service hotels in competitive hospitality markets.
Loading preview...
Download this + 1,700 other FDDs · One-time purchase
Franchise Costs
6% royalty + 2% ad fund + $734-$1,050/mo PMS monthly support and service fee
Financial Performance
Item 19 Financial Performance
Data Based On: The primary financial performance data for Average Daily Room Rate (ADR), Occupancy Rate, and Revenue Per Available Room (RevPAR), as well as RevPAR Index, is based on 'Qualified Chain Facilities'. The document states that 140 such facilities were included in the sample for the period January 1, 2024 through December 31, 2024. It is also explicitly stated that 'All the Chain Facilities were operated by franchisees during the period reflected in this Item 19'. The Central Reservation System and Wyndham Rewards Contribution data is based on a larger sample of 312 Chain Facilities, which are also confirmed to be franchised.
* The document provides financial performance representations in Item 19, including Average Daily Room Rate (ADR), Occupancy Rate, Revenue Per Available Room (RevPAR), RevPAR Index, and Central Reservation System/Wyndham Rewards contribution percentages. However, it does not explicitly state 'average gross revenue' or 'median gross revenue' in total dollar amounts per franchise unit over the reporting period. The ADR and RevPAR figures provided are rates per room or per available room, not the overall gross revenue generated by an individual franchise unit. Without information on the number of rooms per facility, it is not possible to derive total gross revenue per unit from the provided rates. Similarly, no explicit net income, net profit, or EBITDA figures (in dollar amounts or as a margin percentage) per franchise unit are provided. Therefore, all specific revenue, profit, and EBITDA fields are set to null as per instructions.
Extracted Item 19 Section
Unlock financial performance data with full access to 1,700+ franchise reports
Unlock financial performance dataMICROTEL INN & SUITES BY WYNDHAM Franchise Analysis
Budget travelers flock to economy hotels like Microtel Inn & Suites by Wyndham for no-frills stays, but franchisees face a high-stakes build-out in a market dominated by giants. Wyndham's brand muscle sounds promising, yet recent location dips and franchisee disputes raise eyebrows—does Item 19's financial disclosure paint a viable path, or do SBA loan trends expose risks? Unlock the data to discover if this limited-service play delivers returns worth the multimillion-dollar bet.
Item 7 in the 2025 FDD pegs initial investment at $7,200,444 to $9,171,777 for new-construction hotels, covering site work, building, FF&E, and pre-opening costs—steep for economy branding, driven by 80-120 room prototypes with interior corridors. Upfront franchise fee hits $40,000, followed by 6% royalties on gross room revenue, 2% brand fund, and $734-$1,050 monthly PMS fees, totaling ongoing pulls around 8-9% plus fixed tech costs that squeeze thin margins in budget lodging. Item 19 shines here, disclosing average gross revenues for mature units, though variability ties to occupancy in highway-adjacent spots; Wyndham's system support includes centralized reservations boosting ADR potential to $80-$110/night in strong markets.
System metrics signal caution: 293 locations in 2023 shrank to 285 in 2024 (-3% growth), with 11 terminations, 13 transfers, and modest 17 projected new units reflecting developer hesitancy amid rising construction costs and labor shortages. SBA records show 66 loans averaging $2,680,015, but default rates warrant scrutiny—hospitality averages hover higher post-pandemic. Litigation clusters around fee collections and contract breaches, with franchisee counterclaims of misrepresentation, underscoring execution risks despite Wyndham's scale. For deep-pocketed operators eyeing stable cash flow over rapid expansion, Microtel offers proven ops templates, but contraction and disputes tip the scale toward wariness unless local demand metrics align perfectly.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How MICROTEL INN & SUITES BY WYNDHAM Compares
Key Insights
- Top 10 largest franchise system in Hotels
- One of the lowest SBA loan default rates in Hotels
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
MICROTEL INN & SUITES BY WYNDHAM Current | $7.2M – $9.2M | $40K | 6.0% | 285 |
| 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 |
| LA QUINTA INN & SUITES | $12.8M – $17.2M | $55K | 5.5% | 884 |
| 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 |
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
+28 more states
Unlock location growth data with full access to 1,700+ franchise reports
Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for MICROTEL INN & SUITES BY WYNDHAM franchisees (2011 – 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.
66 SBA loans on record
Unlock SBA loan history with full access to 1,700+ franchise reports
Unlock SBA loan historyFranchisee Contacts
383 franchisee contacts on file from official FDD filings.
383 Contacts Available
Unlock all MICROTEL INN & SUITES BY WYNDHAM franchisee contacts with verified contact information
Unlock contactsDue Diligence
Litigation (Item 3)
Primarily breach of contract and recurring fee collection disputes with franchisees or developers, including counterclaims alleging fraudulent inducement, misrepresentation, and violations of franchise laws.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Unlock due diligence reports with full access to 1,700+ franchise reports
Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a MICROTEL INN & SUITES BY WYNDHAM franchise ranges from $7,200,444 to $9,171,777. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.
More Hospitality & Lodging Franchises
SUPER 8
Hospitality & Lodging
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES
Hospitality & Lodging
LA QUINTA INN & SUITES
Hospitality & Lodging
RED ROOF PLUS AND SUITES
Hospitality & Lodging
BAYMONT INN & BAYMONT INN & SUITES
Hospitality & Lodging
TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN,
Hospitality & Lodging