SUPER 8

Super 8 has faced contraction, dropping from 1,419 locations in 2023 to 1,375 in 2024—a 3% decline—signaling potential market saturation or operational pressures in the budget lodging segment. Item 7 pegs initial investment at $4,663,694 to $6,929,131, including a $25,000 franchise fee, with ongoing fees stacking up: 5.5% royalty, 3% system assessment, plus $734-$1,050 monthly PMS support and annual training costs. The 63 terminations and 63 transfers in the latest FDD year match projected new units at just 32, hinting at churn offsetting modest growth; litigation centers on termination disputes and fee collections, a common flag for collection-heavy franchisors.

Item 19 provides franchisee-reported earnings, though averages aren't specified here—check FranDB for medians across units. SBA data shines: 655 loans averaging $1,853,318 with a low 1.1% default rate, suggesting viable financing and strong repayment track record versus industry norms. For investors eyeing hospitality, Super 8 offers Wyndham backing and scale, but the downward trajectory and fee layers demand scrutiny of local demand and occupancy before committing millions.