RAMADA AND RAMADA PLAZA

Item 7 lays out the steep entry: $7,709,044 to $12,091,975 initial investment for Ramada and Ramada Plaza properties, covering buildout for 100+ room facilities with amenities like business centers and F&B options. Upfront franchise fee hits $35,000, followed by 5% royalties, 2% brand/ad fund (part of 3.5% system assessment), plus ongoing hits like $734-$1,050 monthly PMS support, $1,200 annual education, and $15 per room yearly RMA fee. Item 19 earnings claims spotlight average revenues across outlets, offering a rare peek into cash flow potential for these transient-focused hotels, though profitability hinges on occupancy in competitive markets—strong for highway-adjacent spots but volatile elsewhere.

System metrics paint a mixed picture: 264 U.S. locations after slipping 5% from 279 in 2023, with 30 terminations signaling franchisee exits, often tied to Item 20 disputes. Litigation clusters around unpaid fees, liquidated damages, and counterclaims over reservation glitches, encroachment, and good faith lapses—red flags for operational support. Still, 15 projected new units suggest Wyndham's pushback, positioning Ramada for rebound in underserved mid-tier segments. Buyers eyeing this must drill into Item 19 medians by region and validate against Wyndham's reservation engine performance to gauge if -5% contraction masks opportunity or warns of deeper woes.