Trademark Collection by Wyndham

What specific operational or market factors caused the dramatic increase in unit closures from 4-5 annually in 2022-2023 to 23 closures in 2024?

Of the 12 franchise terminations in 2024, how many were franchisor-initiated versus franchisee-initiated, and what were the primary reasons cited?

Can you provide details on the 6 litigation cases where the franchisor was named as defendant, including case outcomes, settlement amounts, and current status of the 2 pending cases?

Given the non-exclusive territory policy with no encroachment protection, how many franchise closures in 2024 were attributed to internal cannibalization or competition from other Trademark Collection by Wyndham locations?

The franchise agreement contains no renewal options—how do franchisees plan for continuity after the initial 20-year term ends, and what happens to established properties at term expiration?

What is the rationale for the below-market ad fund rate of 2.0% compared to the typical 2.25-3.5% range for hospitality franchises, and how does this impact system-wide marketing support?

Item 19 financial performance data is available—what are the median and average gross sales figures for Trademark Collection locations, and how many units reported this data?

Can you explain the relationship between the high turnover rate (25.8%) and the strong net unit growth (4.71%), and whether growth is coming from new unit sales or acquisitions of closed locations?

What specific defaults trigger the 10-day cure period versus the 90-day cure period in the termination clause, and how frequently is the termination right exercised in practice?

The personal guarantee requirement binds owners and spouses (in community property states) to all franchise obligations—what recourse exists if franchisor operations failures impact unit profitability?

Are there any legal disputes pending or recently settled related to the 2024 mass closure event, or investigations by state attorneys general into franchise sales practices?

How has the franchisor addressed the six litigation cases where it was named as defendant in terms of operational or policy changes to prevent future disputes?

Given the $35,000 renewal fee and $35,000 transfer fee, what financial flexibility exists for franchisees facing distress, and has the franchisor created any relief programs during the recent closure spike?

What percentage of the 23 closures in 2024 were in specific geographic regions or property types, and are there identifiable market saturation issues?

The franchise provides no territory protection and no non-compete period post-exit—how does this policy affect franchisee re-entry into the hotel industry upon exit?

What is the franchisor's current strategy to stabilize the system given the 25.8% turnover rate, and are there pending operational changes to improve franchisee profitability?

Can you provide the historical ROI data for franchisees who have exited in the past 3 years to understand if closures correlate with underperformance versus external factors?