How To's
The Real Wyndham Hotels and Resorts Franchise Cost
Wyndham Hotels and Resorts started its operations and opened its brand for franchisees in 1990. Presently, there are around 9000 hotels under its system across the globe. Since then, it has been the go-to property of most business travelers, considering its world-class facilities and outstanding customer services. If you are interested in putting up your own hotel carrying this brand, read this post first. We will then provide you an overview of the requirements and the estimated Wyndham Hotels and Resorts franchise cost.
Franchise Description
The main franchisor of the brand is Wyndham Franchisor, LLC, which is a subsidiary of Wyndham Hotels and Resorts (a subsidiary of Wyndham Hotel Group, LLC). They offer, sell, and support franchises for all the guest lodging facilities. Guests can also experience different amenities, such as restaurants, bars, and fitness facilities. In fact, in some locations, the guests can enjoy tennis, golf, beaches, and spa.
Aside from the Wyndham Hotels and Resorts, the company operates different brands, including the following:
- AmericInn
- Baymont Inn & Suites
- Days Inn
- Dolce Hotels and Resorts
- Hawthorn Suites by Wyndham
- Howard Johnson
- La Quinta
- Microtel Inn & Suites by Wyndham
- Ramada
- Ramada Encore
- Super 8
- Travelodge
- TRYP by Wyndham
- Wingate by Wyndham
- Wyndham Garden
- Wyndham Grand
- Dazzler Hotels
- Esplendor Boutique Hotels
- The Trademark Hotel Collection
Franchisee Training
It is mandatory that the designated attendees complete and pass the necessary training. The franchisor’s training team offers and facilitates both workshops and online training to the franchisees and/ or designated attendees.
The franchisor should provide training for the hotel’s designated General Manager under its Hospitality Management Program. This specific training will run for five days.
Assuming that it is a newly built property, the franchisees will also have to undergo an opening training. It is usually held within the facility two weeks before the actual opening date.
The brand has its own customer loyalty program, Wyndham Rewards, and all facilities should participate in the training program discussing the particulars.
General Managers must also attend the annual leadership conference, and other staff may be required to participate in periodic meetings.
In case the facility receives specific customer feedback, the main franchisor might request the General Manager and the staff to attend remedial customer experience assessment or training.
Territory
The franchise covers the development and operation of a single chain facility in one location. Take note though, that the Franchise Agreement is not a guarantee of protected territory. It is possible that the franchisee will face competition from other properties. It includes other hotels under the Wyndham group as well.
There is, however, territorial protection, which may be provided by the franchisor. Under this agreement, the franchisor will not license anyone to open a facility under their system within a specified area for a defined period.
Franchisee Obligations
The franchisees do not have to participate in the direct operation of the property. However, the franchisor recommends that they do.
In case the franchisee chooses not to manage the facility, they will need to hire a reputable management company or a person with ample experience in managing similar properties. To emphasize, they should be able to complete the whole training program.
During the operation, the franchisee should never offer goods and services without the franchisor’s proper approval.
Term of Agreement
The franchise term is for 20 years for new construction. While for conversion and transfers, the agreement covers 15 years.
Wyndham Hotels and Resorts does not provide renewal rights.
Financial Assistance
The franchisor may grant a deferred payment for the initial franchise fee. This could be for 90 days or until the facility becomes a member of the chain facility. In addition to this, there are development incentives for new construction and conversion of the property.
Take note that the franchisor does not offer financing arrangements.
Did You Know?
At the end of this article, you will find the estimated Wyndham Hotels and Resorts franchise cost. But before that, let’s talk about a few interesting facts about the brand. That way, you can appreciate it further and know why you have to consider to franchise the property.
Situated in Various Locations
One of the best things about Wyndham Hotels and Resorts is that there are several properties worldwide. You can find them in big cities and even in small towns. Wherever you go, it is possible to find a property under their system that will give you the same high quality of customer service and experience.
You can find Wyndham Hotels and Resorts in Canada, China, Colombia, Mexico, Armenia, Saudi Arabia, Indonesia, and Ecuador, to name a few.
Creates Thousands of Jobs Globally
To date, there are more than 40,000 Wyndham Hotels and Resorts’ employees around the world. It is believed that the number will grow in the coming years. Having said that, imagine the lives that could be transformed and the families that will experience a better life with these job opportunities.
In fact, in New Jersey, Wyndham Hotels and Resorts has been named as one of the best places to work.
New Mobile App for Low Contact
The company announced the availability of its app. This is now available on iOS and Android and is considered the first app to offer mobile check-in and check-out.
Social Responsibility
Wyndham Hotels and Resorts takes its social responsibility to the core by promoting a culture of diversity and inclusion. Aside from that, they strive their best to minimize the impact of their operations on the environment.
Your Investment
If you plan to put up your own facility, consider the Wyndham Hotels and Resorts franchise cost below.
| Name of Fee | Low | High |
|---|---|---|
| Application Fee, Initial Franchise Fee | $150,500 | $150,500 |
| Market Study | $12,000 | $50,000 |
| Phase I Environmental Survey | $4,000 | $7,500 |
| Architecture, Design and Engineering | $1,150,716 | $2,495,175 |
| Land Acquisition | Highly variable; not estimated | |
| Insurance | $35,000 | $55,000 |
| Permits, Licenses, Deposits and Related Fees | $419,000 | $1,200,000 |
| Hotel Construction | $31,793,216 | $53,123,895 |
| Furniture, Fixtures and Equipment | $4,638,781 | $4,835,825 |
| Signage | $45,000 | $150,000 |
| Opening Inventory and Supplies | $813,579 | $935,961 |
| Photos | $3,560 | $3,560 |
| Liquor License | $2,000 | $400,000 |
| Technology Systems | $199,047 | $201,047 |
| Property Management Set-Up and Installation | $23,075 | $23,075 |
| Training Tuition | $2,950 | $9,400 |
| Training Expense | $1,294 | $7,092 |
| Pre-Opening Marketing/ Grand Opening | $50,000 | $450,000 |
| Pre-Opening Wages | $501,466 | $1,002,932 |
| Other Expenses | $100,000 | $200,000 |
| Construction Contingency | $1,589,661 | $2,656,195 |
| Additional Funds for First 3 Months of Operation | $577,735 | $1,231,740 |
| ESTIMATED TOTAL* | $42,112,580 | $69,188,897 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of gross room revenues (GRR). |
| Marketing and Global Sales Fee | 3% of GRR. |
| Taxes | Amount assessed by federal, state and local tax authorities. |
| Expansion Fee | Then-current initial franchise fee per room times the number of rooms proposed to be added. |
| Custom Interior Design Review Fee | Currently, $6,000. |
| Property Improvement Plan Preparation Fee | Currently, $1,500 per request. |
| General Manager Certification Additional Attendee Fee | Currently, $1,400. |
| Onsite Opening Training | 0–50 rooms / 1 day training $750 51–200 rooms / up to 3 days training $2,250 200+ rooms / up to 5 days training $3,750 |
| New Owner Orientation | Currently, $2,000. |
| Remedial Training | Online: $250. Onsite: $750 to $1,250. |
| Product Quality Training | Onsite: $1,500 for 1 day; up to $3,000 for 2 to 5 days; and up to $5,000 for 6 to 10 days. |
| Continuing Education | Currently, $35 per room per year. |
| Conference Fee | Currently $1,250 – $1,500. |
| Reservation System Fee | (a) brand.com bookings: $3.50; (b) voice reservations: $15.00 per reservation (resorts); $12.90 per reservation (hotels) |
| GDS Fees | $7.75 per reservation. |
| Third Party Channel Fee | $2.25 per reservation. |
| Internet Booking Fees | $2.25 per reservation. |
| Agency Commissions | Up to 20% of GRR. |
| Agency Commissions Service Charge | 1.5% of commissionable revenue. |
| Member Benefits Commissions | Up to 10% of GRR. |
| Member Benefits Commissions Service Charge | Up to 1.5% of commissionable revenue. |
| Digital Pay-For-Performance (PFP) Commission | Up to 10% of GRR. |
| Wyndham Referral Rewards Program | 10% of commissionable revenue. |
| Global Translation Fee | $200 per language. |
| Signature Reservation Services Fee | 3.5% of the amount of GRR booked with a maximum of $7.00 per booking for DCT or $2.95 per call transferred for PCT. |
| Short Term Revenue Management Service | $3,000 for 90 consecutive days of service. |
| Gold Revenue Management Fees | Currently, $4.20 per room per month, with a minimum of $504 and a maximum of $5,000 per month. |
| Platinum Revenue Management Services | Currently, 0-60 rooms $595 per month; 61-100 rooms $750 per month; 101-145 rooms $795 per month, and 146+ rooms $1,195 per month. |
| Diamond Revenue Management Fees | Currently, 0-145 rooms $1,300 per month; 146-199 rooms $1,900 per month; and for facilities with over 200 $2,400 per month. |
| Brand Offer Pages | $2,500 per year. |
| STR Report Fee | $750 per year. |
| Loyalty Program Charge | 5% of all amounts on which members earn points or other program currency. |
| Loyalty Retraining Fee | Up to $400 per month. |
| Loyalty Member Services Administration Fee | $50 per complaint. |
| Customer Care Fee | $195 plus resolution costs. |
| Best Rate Guarantee Processing Fee | $195 per instance. |
| OPERA PMS: SaaS Subscription Model – Set-Up and Implementation Fee | $23,075, plus $450/Interface $5,000 EMV Interface, and $3,150/OXI Interface |
| OPERA Support/HTCS and CRISP Service Fee – OPERA PMS: SaaS Subscription Model | $297 – $687 per month. |
| Preventative Maintenance Software | Up to $1,500 per year. |
| Wyndham WiFi Hotel Connectivity Support (HCS)Fee | $0.85 per room per month. |
| Opening Date Extension Fee | $10,000 |
| Interest | Lesser of 1.5% per month or the maximum rate permitted by law. |
| Returned Check Fee | $100 for each occurrence. |
| Paper Check Fee | $160 processing fee per each occurrence. |
| Reconnection Fee | $4,000. |
| Audit Costs | Costs and expenses of audit. |
| Quality Assurance Inspection Fees | $1,400 for initial inspection. $2,100 per re-inspection. |
| PIP Reinspection Fee | $2,500. |
| Three Party Agreement / Comfort Letter Fee | $1,000 per request. |
| Indemnification | Will vary under circumstances but likely to include cost of defending and resolving indemnified claims. |
| Condemnation Payments | Royalties and marketing and global sales fees for one year after notice of Condemnation or to the date of Condemnation, whichever is longer |
| Liquidated Damages | Greater of $3,000 per guest room or monthly average Royalty Fees and Marketing and Global Sales Fees computed over the prior 12 months, multiplied by 36. |
| De-Identification Fee | $2,000 per day. |
| Enforcement Costs | Varies. |
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