Ramada by Wyndham

Can you provide details on the 3 pending litigation cases, including the nature of disputes, parties involved, and timeline for resolution?

The system has declined 53 units over 3 years (from 317 to 264). What specific factors are driving these closures, and what is the franchisor's strategy to stabilize or grow the system?

Why is the 1-year turnover rate of 11.4% significantly higher than the typical range for hotel franchises? Are closures concentrated in specific regions or property types?

The initial franchise term is 15 years with zero renewal options, substantially shorter than the typical 20-30 year potential term for hotel franchises. What is the rationale for this shorter term, and how does the franchisor handle contract renewal?

The Renewal Conditions clause states that neither party has renewal rights or options, but compliance is required if state law mandates renewal. Which states, if any, require renewal options under their franchising laws, and what would that process entail?

The Personal Guarantee and Indemnification clause requires spouses to guarantee in community property states. How broadly does the indemnification extend, and are there any caps on franchisor liability?

What support and resources does the brand provide to underperforming franchisees before closure or termination?

The Termination clause provides 10-day cure periods for monetary defaults and 30 days for other defaults. Can you provide examples of the 15 non-curable default categories and the typical reasons franchisees are terminated?

Transfer fee is $35,000. Are there other costs associated with transfers, and does the franchisor have approval rights or right of first refusal on unit sales?

How is the $734 annual technology fee calculated, what systems does it cover, and has this fee increased over the past 3 years?

The Item 19 financial performance statement is provided. What is the average unit volume (AUV) reported, occupancy rate, average daily rate (ADR), and what percentage of franchisees achieve or exceed these averages?

Of the 30 unit closures in 2024, how many were due to market conditions, franchisor decisions, franchisee financial distress, or other factors? Are there examples available from exiting franchisees?

With territory protected but not exclusive, how does the franchisor define encroachment, and has there been litigation or disputes regarding encroachment violations?

No post-termination non-compete restrictions (0 years / 0 miles) means former franchisees can immediately open competing hotels in the same area. How common is this, and has it impacted the system?

What training and ongoing support are provided, and how does the franchisor assist with property management, marketing, and technology implementation?

Are there capital improvement requirements or standards that franchisees must meet, and if so, what is the estimated cost and frequency?

What conditions must be met to renew the franchise agreement under the renewal conditions clause, including property inspections, financial requirements, and updated agreements?

The Risk Factors score of 37 is significantly below the typical range. What specific operational, financial, or market risks should prospective franchisees understand?

The System Health score of 32 is below typical. What metrics define system health, and how does this franchise's performance compare to competitors?