About Wingate Inn and Wingate by Wyndham Franchise
Wingate by Wyndham is a midscale hotel franchise offering guest lodging facilities with overnight accommodations and related services.
Franchisees construct or convert and operate Wingate by Wyndham hotels, typically built on a 99-guest room prototype with an interior corridor design of three stories or more.
Each facility offers amenities and services targeting both value-oriented business and leisure travelers, including complimentary continental breakfast, electronic door locks, large well-lit work areas, LCD screens of at least 40 inches, microwave/refrigerator combination units, in-room safes, meeting rooms, complimentary fax and copier services, a sundry shop, free local telephone calls, an exercise facility, and high-speed Internet access.
Wingate Inn and Wingate by Wyndham Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $36,000 | One-time payment upon signing |
| Royalty Fee | 4.5% of Gross Room Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 4% of Gross Room Revenues (System Assessment Fee) | National brand fund |
| Total Investment Range | $335,864 – $12,546,538 | Includes build-out, inventory, working capital |
The investment range of $336K–$12.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% of Gross Room Revenues) and marketing fee (4% of Gross Room Revenues (System Assessment Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee, Initial Fee | $36,000 | $36,000 |
| Photos | $2,750 | $2,750 |
| Training Tuition | $5,700 | $8,100 |
| Training Expenses | $3,900 | $6,850 |
| Market Study | $5,000 | $12,000 |
| Real Estate and Site Preparation | $0 | $0 |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $355,000 | $598,320 |
| Facility Construction | $6,123,997 | $9,525,657 |
| Construction Contingency | $306,200 | $476,283 |
| Technology Systems | $67,481 | $69,481 |
| Property Management Set-Up and Installation | $3,400 | $19,425 |
| Furniture, Fixture and Equipment | $810,995 | $899,021 |
| Signage | $45,000 | $100,000 |
| Opening Inventory | $296,432 | $305,923 |
| Insurance | $15,000 | $30,000 |
| Grand Opening Advertising | $1,800 | $15,000 |
| Pre-Opening Wages | $73,293 | $131,013 |
| Miscellaneous Non-Tangible Asset Costs | $17,055 | $32,905 |
| Additional Funds for 3 Month Initial Period | $92,603 | $277,810 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $36,000 Relicense Fee (same as Initial Fee); $5,000 Administrative Assignment |
| Renewal Fee | Relicense Fee (same formula as Initial Fee) |
| Technology Fee | SynXis PMS: $621/month or OPERA PMS: $8.50-$11.25/room/month |
| Audit Fee | Costs and expenses of audit |
| Co-Op Fee | $1.00 per room per month |
| Loyalty Program Charge | 4.25%-5.5% of amounts on which members earn points |
| GDS Fees | $2.00 per reservation |
| Third Party Channel Fee | $2.00 per reservation |
| Internet Booking Fees | $2.00 per reservation |
| Agency Commissions | Up to 20% of GRR |
| Signature Reservation Service Fee | 3.5% of GRR with max $7.30 per booking |
| Essential Revenue Management Services | 0.50% of GRR, min $345, max $595/month |
| Digital Pay-For-Performance Commission | Up to 10% of GRR (currently 7%) |
| Extension Fee | $10,000 |
| Reinspection Fee | $2,100 |
| Liquidated Damages | Greater of $3,000/room or avg monthly Royalties and SAF for 12 months x 36 |
| De-Identification Fee | $2,000 per day |
| Continuing Education | $1,200 per year |
| Chain Conference Fee | $1,250-$1,500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 5 days (Hospitality Management Program) plus 1-5 days Opening Training on-site plus up to 3 days Wyndham Connections training |
| Classroom Training | 29 hours (HMP) plus up to 24 hours (Wyndham Connections) plus 8-40 hours (Opening Training) |
| On-the-Job Training | Up to 30 hours (Opening Training on-site) |
| Training Location | Parsippany, NJ corporate offices or central locations in North America; Opening Training at your Facility |
| Additional Training | Continuing Education ($1,200/year including regional workshops and Wyndham University access); Human Trafficking Prevention Training (virtual, no fee); Count on Us Training (virtual, no fee); Remedial Training (up to $1,250); Product Quality Training ($1,500-$5,000); Wyndham Rewards Training (web-based) |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Negotiated based on market factors |
| Description | Franchisees receive a Protected Territory negotiated before signing the Franchise Agreement, based on factors including urban/suburban/rural market, population density, demographics, natural travel boundaries, lodging demand generators, and other variables. The territory may be defined as a radius from the Facility or an irregular area. The franchisor will not grant additional Wingate franchises within the Protected Territory without consent, but may operate other brands and competitive outlets adjacent to the territory. The franchisor and affiliates retain rights to solicit reservations from within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | No renewal or extension rights; may negotiate new agreement |
| Renewal Fee | Relicense Fee (same formula as Initial Fee, currently $36,000 or $360 per room) |
| Renewal Conditions | No renewal or extension rights. If both parties elect to renew, franchisee must sign then-current Franchise Agreement (which may have materially different terms) and pay the then-current Relicense Fee. |
| Transfer Fee | $36,000 Relicense Fee (includes $2,500 Application Fee); $5,000 for Administrative Assignment; $7,500 for financial institution/receiver transfer |
| Transfer Conditions | Franchisor has right to approve all transfers and qualify all transferees. Transferee must submit Franchise Application, pay Relicense and Application Fees, sign current Franchise Agreement, and improve Facility as applicable. Franchisee and owners must sign general releases. |
| Termination for Cause | Franchisor may terminate for default, failure to meet improvement deadlines, failure to provide Certification, certain events, or if a material term of the Franchise Agreement is held invalid. Curable defaults: 10 days for monetary/reporting/confidentiality; 30 days for other breaches; Quality Assurance defaults must cure within 90 days if written plan approved. |
| Non-Compete Period | During the term of the franchise only |
| Non-Compete Details | During the term, franchisee may not own, lease, manage or franchise a timeshare resort, vacation or residence club, fractional ownership residence, condominium/apartment leasing or rental business that shares common areas with the Facility. Also prohibited from promoting competing businesses or advertising hotels other than Chain Facilities. No post-term non-competition covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You do not have to participate personally in the direct operation of your Facility although we recommend that you do so. If you do not personally manage the Facility, you must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities. The manager must successfully complete the franchisor's training program. |
| Required Suppliers | Must purchase items bearing the Marks from Approved Suppliers (signage, supplies, digital photographs), certain brand-defining ambience elements, health and safety items, technology systems including PMS, credit card processing, and high-speed internet access. Must use franchisor's call center for reservations. |
| Supply Restrictions | Items meeting System Standards must meet franchisor specifications. Approximately 75% of total initial expenditures for goods and services must meet System Standards. Two approved PMS brands (SynXis and OPERA), one supplier per brand. One approved credit card gateway processor. |
| Franchisor Revenue from Suppliers | In 2021, franchisor and Lodging Affiliates' net revenues from franchisee purchases were approximately $18.1 million, or approximately 1.2% of WHR's total net revenues of $1.565 billion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may defer payment of the Initial Fee, usually for a short term such as 90 days or until the Facility opens. They also offer Development Incentives (loans) for new construction and conversion facilities, based on factors including number of rooms, location, market overview, and feasibility study. The Development Incentive reduces by 1/20th or 1/15th of the original amount at each anniversary. A special Women Own the Room (WOTR) Development Incentive program provides $2,500 per guest room for approved women-owned franchisees. |
Wingate Inn and Wingate by Wyndham Franchise Earnings — Item 19
Wingate Inn and Wingate by Wyndham does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Wingate Inn and Wingate by Wyndham Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Wingate Inn and Wingate by Wyndham System Growth
Wingate Inn and Wingate by Wyndham currently operates 164 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 26 | 11 | 169 |
| 2020 | 4 | 13 | 160 |
| 2021 | 11 | 7 | 164 |
Transfers: 3 | Closures: 7
State Registrations
Registered in 13 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, VA, WA, WI
Wingate Inn and Wingate by Wyndham Franchise — FAQ
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