WYNDHAM GARDEN

Item 5 pegs the initial franchise fee at $35,000 for new builds or conversions under the Wyndham Garden System. Ongoing costs include a 5% royalty on gross room revenue, 3% marketing and global sales fee, plus a $4,000 annual continuing education charge—totaling significant outflows for operators managing 100-110 room properties. While Item 7 investment ranges aren't detailed here, SBA records paint a clear picture: 673 loans averaging $2,438,086 with an impressively low 0.9% default rate, signaling strong lender confidence despite the multimillion-dollar capital demands typical for hotels. Item 19 disclosure lets you scrutinize actual franchisee performance, a rarity that demands verification against these financing stats.

Growth metrics show a system expanding from 65 to 71 locations in 2024 (+9%), with 21 projected new units signaling momentum from franchising since 2005. Health indicators are solid: just 2 terminations and 1 transfer, far below riskier concepts. Litigation centers on contract breaches and fee disputes, including some franchisee counterclaims, so Item 20 trends warrant close review. For investors eyeing hospitality, this data mix—low defaults, modest scale, earnings transparency—positions Wyndham Garden as a financed heavyweight worth modeling for cash flow potential.