WOODSPRING SUITES

Item 7 lays out the steep entry: $8,229,200 to $13,293,300 initial investment, including a $50,000 franchise fee, driven by new construction costs for these midscale properties. Ongoing fees stack up at 6% royalty plus 2.5% brand/ad fund, plus extras like $525/month choiceADVANTAGE, $30-$95/month CrowdStrike cybersecurity, and $18/month ECM software—higher than some hotel peers but standard for branded support. Item 19 shines with average gross revenue of $2,189,787 and median $2,150,933 across units, translating to a slim 1% EBITDA margin and estimated profit around $1,212,278; that's decent top-line for the model but tight margins demand 70%+ occupancy to hit profitability.

System maturity shows +9% growth from 235 to 256 locations (2023-2024), with 26 projected new units and only 2 terminations—signs of stability since franchising began in 2018 under Choice Hotels. SBA stats impress: 788 loans averaging $2,579,906 with a low 0.9% default rate, far below category norms and signaling strong franchisee viability despite the $10M+ average build. Yet litigation flags wave red: 117 franchisor-initiated cases in 2024 for royalties and damages, plus franchisee countersuits alleging fraud and breach—higher friction than average, so vet contracts closely as this could erode returns in disputes.