If you are looking towards opening a Days Inn By WindHam Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.

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Days Inn By WindHam was founded in 1970 and they began franchising in 1972, about 48 years ago. The current CEO is Geoff Ballotti and they have their corporate head office at 22 Sylvan Wy. Parsippany, NJ 07054, USA. As of 2018, the company owns and operates 882 franchises in the United States and 26 outside the country. Based on 2016 FDD data, Days Inn By WindHam has franchise locations in 48 states plus DC. The largest region is the South with 467 franchise locations.

Wyndham Franchisor, LLC is the franchisor. The franchisor is a subsidiary of Wyndham Hotels and Resorts, LLC, which is a subsidiary of Wyndham Hotel Group, LLC. Wyndham operates hotels under the following brands: 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 Hotels and Resorts, Wyndham Garden, Wyndham Grand, Dazzler Hotels, Esplendor Boutique Hotels, and The Trademark Hotel Collection.

The franchisor offers, sells and supports franchises for the establishment and operation of Wyndham “chain” guest lodging facilities (a “chain facility” or “facility”), which offer customers a full service experience in primary destinations, include restaurant, bar (where legally permitted), fitness facilities and, in business locations, business centers and meeting and event facilities that are flexible for large and small meetings. Wyndham Resort properties also offer amenities such as golf, tennis, beaches and/or spas.

Here are areas where you are expected to spend money and the costs associated with it;

  1. Initial Investment Range

    $292,634 to $8,281,441

  2. Franchise Fee

    $150,500

  3. Royalty Fee

    5% of gross room revenues (GRR) and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

  1. Market Study

    $12,000 to $50,000

  2. Phase I Environmental Survey: $4,000 to $7,500
  3. Architecture, Design and Engineering: $1,150,716 to $2,495,175
  4. Land Acquisition: This fee is Highly variable; not estimated
  5. Insurance: $35,000 to $55,000
  6. Permits, Licenses, Deposits and Related Fees: $419,000 to $1,200,000
  7. Hotel Construction: $31,793,216 to $53,123,895
  8. Furniture, Fixtures and Equipment: $4,638,781 to $4,835,825
  9. Signage: $45,000 to $150,000
  10. Opening Inventory and Supplies: $813,579 to $935,961
  11. Photos: $3,560 to $3,560
  12. Liquor License: $2,000 to $400,000
  13. Technology Systems: $199,047 to $201,047
  14. Property Management Set-Up and Installation: $23,075 to $23,075
  15. Training Tuition: $2,950 to $9,400
  16. Training Expense: $1,294 to $7,092
  17. Pre-Opening Marketing/Grand Opening: $50,000 to $450,000
  18. Pre-Opening Wages: $501,466 to $1,002,932
  19. Other Expenses: $100,000 to $200,000
  20. Construction Contingency: $1,589,661 to $2,656,195
  21. Additional Funds for First 3 Months of Operation: $577,735 to $1,231,740
  22. Marketing and Global Sales Fee: 3% of GRR.
  23. Taxes: Amount assessed by federal, state and local tax authorities.
  24. Expansion Fee: Then-current initial franchise fee per room times the number of rooms proposed to be added.
  25. Custom Interior Design Review Fee: Currently, $6,000.
  26. Property Improvement Plan Preparation Fee: Currently, $1,500 per request.
  27. General Manager Certification Additional Attendee Fee: Currently, $1,400.
  28. 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

  1. New Owner Orientation: Currently, $2,000.
  2. Remedial Training: Online: $250. Onsite: $750 to $1,250.
  3. 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.
  4. Continuing Education: Currently, $35 per room per year.
  5. Conference Fee: Currently $1,250 – $1,500.
  6. Reservation System Fee: (a) brand.com bookings: $3.50;

(b) voice reservations: $15.00 per reservation (resorts); $12.90 per reservation (hotels)

  1. GDS Fees: $7.75 per reservation.
  2. Third Party Channel Fee: $2.25 per reservation.
  3. Internet Booking Fees: $2.25 per reservation.
  4. Agency Commissions: Up to 20% of GRR.
  5. Agency Commissions Service Charge: 1.5% of commissionable revenue.
  6. Member Benefits Commissions: Up to 10% of GRR.
  7. Member Benefits Commissions Service Charge: Up to 1.5% of commissionable revenue.
  8. Digital Pay-For-Performance (PFP) Commission: Up to 10% of GRR.
  9. Wyndham Referral Rewards Program: 10% of commissionable revenue.
  10. Global Translation Fee: Currently, $200 per language.
  11. Signature Reservation Services Fee: Currently, 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.
  12. Short Term Revenue Management Service: Currently, $3,000 for 90 consecutive days of service.
  13. Gold Revenue Management Fees: Currently, $4.20 per room per month, with a minimum of $504 and a maximum of $5,000 per month.
  14. 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.
  15. 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.
  16. Brand Offer Pages: $2,500 per year.
  17. STR Report Fee: $750 per year.
  18. Loyalty Program Charge: 5% of all amounts on which members earn points or other program currency.
  19. Loyalty Retraining Fee: Up to $400 per month.
  20. Loyalty Member Services Administration Fee: Currently $50 per complaint.
  21. Customer Care Fee: $195 plus resolution costs.
  22. Best Rate Guarantee Processing Fee: Currently, $195 per instance.
  23. OPERA PMS: SaaS Subscription Model – Set-Up and Implementation Fee: Currently, $23,075, plus $450/Interface $5,000 EMV Interface, and $3,150/OXI Interface
  24. OPERA Support/HTCS and CRISP Service Fee – OPERA PMS: SaaS Subscription Model: $297 – $687 per month.
  25. Preventative Maintenance Software: Currently, up to $1,500 per year.
  26. Wyndham WiFi Hotel Connectivity Support (HCS)Fee: Currently, $0.85 per room per month.
  27. Opening Date Extension Fee: $10,000
  28. Interest: Lesser of 1.5% per month or the maximum rate permitted by law.
  29. Returned Check Fee: Currently, $100 for each occurrence.
  30. Paper Check Fee: $160 processing fee per each occurrence.
  31. Reconnection Fee: Currently, $4,000.
  32. Audit Costs: Costs and expenses of audit.
  33. Quality Assurance Inspection Fees: Currently, $1,400 for initial inspection. $2,100 per re-inspection.
  34. PIP Reinspection Fee: Currently, $2,500.
  35. Three Party Agreement / Comfort Letter Fee: Currently, $1,000 per request.
  36. Indemnification: Will vary under circumstances but likely to include cost of defending and resolving indemnified claims.
  37. 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.
  38. 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.
  39. De-Identification Fee: $2,000 per day.
  40. Enforcement Costs: Will vary.
  41. Term of Agreement and Renewal: The length of the initial franchise term is 20 years for new construction; 15 years for conversions and transfers. There are no renewal rights. Any continuation of the hotel’s affiliation with the system is subject to the execution and delivery of the then current form of Franchise Agreement, which may differ materially from the previous agreement.
  42. Financial Assistance: The franchisor may defer payment of the initial franchise fee, if it determines that business circumstances warrant. The deferral is usually for a short term such as 90 days, or until the facility opens as a member of the chain facility, whichever occurs first. The franchisor also may offer certain “Development Incentives” for new construction and conversion chain facilities. The incentives are based on various factors and are determined in the franchisor’s sole discretion. Except as specified, the franchisor does not offer or provide any financing arrangements for system franchisees, either directly or indirectly.

In Summary,

  • Initial Franchise Fee: $25,000 – $35,000
  • Total Investment: $2,389,600 to $3,454,000
  • Working Capital: $55,000 to $70,000
  • Ongoing Royalty Fee: 5%
  • Ad Royalty Fee: 3.5%
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