Microtel Inn & Suites by Wyndham is a hotel franchise focused on new construction economy/budget hotels. The system has been declining with total units dropping from 296 in 2022 to 285 in 2024. The franchise requires a substantial investment of $7.2M to $9.2M for an 81-room new construction facility, making it capital intensive. The 20-year initial term provides stability, but there are no automatic renewal rights. The 6% royalty rate and 2% marketing fund contribution are standard for the hotel industry. The franchise provides protected territory but allows franchisor competition outside the territory. Training and operational support appear adequate, with ongoing technology and revenue management services available for additional fees. The financial performance data in Item 19 focuses on operational metrics like ADR and RevPAR rather than profitability, making it difficult to assess unit-level economics.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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