Arise Suites Extended Stay by Wyndham Franchise
Risk Score
Pending analysis
Investment Range
$304,266 - $2,462,193
Franchise Fee
$25,000
Business Summary
Arise Suites Extended Stay by Wyndham offers franchises for economy, limited-service extended-stay lodging facilities. These hotels feature modern accommodations and amenities, including kitchenettes in at least 85% of guest rooms, to serve budget-conscious guests staying for at least seven nights. Franchises can be for existing extended-stay facilities or for transient hotels converting to the Arise Suites Extended Stay by Wyndham brand.
Corporate History
WHR Extended Stay, LLC, the franchisor for Arise Suites Extended Stay by Wyndham, was originally established as a corporation in Delaware on March 22, 2007. The company underwent a conversion to a limited liability company on November 2, 2021, and subsequently changed its name to WHR Extended Stay, LLC on July 14, 2022. The formation of WHR (Wyndham Hotels & Resorts, Inc.), its parent company, resulted from a tax-free spin-off of Wyndham Worldwide Corporation's hotel and transient lodging businesses on May 31, 2018. Arise Suites Extended Stay by Wyndham is a relatively new brand, with WHR Extended Stay, LLC commencing its franchise offerings for this brand in December 2023. Prior to this, the franchisor began offering franchises for the ECHO Suites Extended Stay by Wyndham brand in November 2022. It is noted that the franchisor itself has not operated any Arise Suites Extended Stay by Wyndham facilities or brand extensions. The broader Wyndham Hotel Group comprises several other lodging affiliates that have a long history of franchising various hotel brands, some dating back to 1975.
Financial Overview
Investment Range
$304,266 - $2,462,193
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$124,347
Equipment Costs (High)
$1,583,479
Working Capital
$61,760
Audited Financials
No
Offers Financing
No
Audit Opinion
Unqualified opinion
Performance Metrics
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
8
Litigation Summary
WHR Extended Stay, LLC, the franchisor for Arise Suites Extended Stay by Wyndham, currently has no pending litigation against it. Its lodging affiliates, however, are involved in one pending class-action lawsuit from 2014, Norma Knuth v. Wyndham Worldwide Corporation, et al., concerning alleged unauthorized "Destination Marketing Fees" in Canada, seeking substantial damages. Historically, the lodging affiliates have faced and resolved several lawsuits, none of which directly involved the Arise Suites brand due to its newness. These resolved cases included actions regarding misleading resort fees, antitrust claims related to online hotel room sales, franchisee disputes over contract terms and alleged retaliation (settled for $220,000 paid by the affiliates), and class actions concerning surreptitious recording of phone conversations (one settled for $1,500,000). The Federal Trade Commission also filed a lawsuit over cyberattacks on Wyndham hotels, which was settled without findings of liability or monetary relief. Another case involved a breach of contract over service fees, settled for $260,000 paid by a Wyndham affiliate.
Bankruptcy History
WHR Extended Stay, LLC has no bankruptcy history to disclose in this FDD. Item 4 explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
20 years
Training & Support Program
Franchisor Assistance
Arise Suites Extended Stay by Wyndham provides comprehensive assistance to its franchisees. Before opening, the franchisor assists with site selection review, designates a protected territory, and prepares a Property Improvement Plan (PIP) after inspecting the facility. Franchisees receive access to the confidential Standards of Operation and Design Manual, specifications for required products and services, and information about approved suppliers. The franchisor offers review services for custom interior designs (for a fee) and mandatory support services such as General Manager Certification training, on-site Opening Training for staff, and Continuing Education programs. An optional online media campaign is available for a fee, but the franchisor does not deliver or install equipment, signs, fixtures, initial inventory, or supplies. After opening, Arise Suites Extended Stay by Wyndham offers ongoing access to the updated Standards of Operation and Design Manual and provides operational support via email, telephone, and an internal online platform. Field support teams conduct periodic visits and inspections. Franchisees participate in a computerized Central Reservation System and a mandatory call handling service where agents book reservations. Optional revenue management programs are available at different service levels, with the first six months of standard service provided complimentary. Franchisees also receive access to a customer experience software platform for managing guest reviews, a remote local sales support service, and a guest engagement platform for mobile guest interactions, currently at no additional charge. Continuing education for the entire hotel team is provided annually for a fee, including regional workshops and access to Wyndham University. General managers are required to attend periodic national leadership conferences. The franchisor also funds and manages advertising and marketing activities to promote the Arise Suites network.
Initial Training Hours
104
Training Location
Corporate designated locations in Parsippany, NJ or other central North American locations, virtually, and on-site at the franchisee's facility.
Ongoing Support
After opening, Arise Suites Extended Stay by Wyndham franchisees receive continuous support through access to the updated Standards of Operation and Design Manual and operational guidance via email and telephone. Field support teams periodically visit facilities to provide on-site assistance. The brand also provides a computerized Central Reservation System and a mandatory call handling service where agents book reservations for the facility. Optional revenue management programs are available at different service levels. Franchisees have access to a customer experience platform (Medallia) for managing guest reviews, a remote local sales support service, and a guest engagement platform for mobile guest interactions, currently without additional charge. Continuing education for the entire hotel team is provided annually for a fee, including regional workshops and access to Wyndham University. General managers are required to attend periodic national leadership conferences every 12 to 18 months, with a fee charged even for non-attendance. Certain personnel may also be required to attend periodic regional meetings.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
protected
Territory Size Requirements
Arise Suites' Protected Territory is determined through negotiation, considering factors such as the market's nature (urban/suburban/rural), population density, demographics, natural travel boundaries (like rivers), proximity to demand generators (e.g., airports, highways, entertainment venues, colleges, hospitals, shopping malls, commercial/industrial activities), and the seasonal versus year-round occupancy patterns. The territory may be defined as a radius from the Facility's door or an irregular area bounded by streets, highways, governmental jurisdiction boundaries, natural boundaries, or by latitude and longitude. The franchisor does not specify a minimum size for the Protected Territory.
Staffing Notes
Arise Suites Extended Stay by Wyndham facilities do not require the franchisee to participate personally in the direct operation of the Facility, although it is recommended. If the franchisee chooses not to manage personally, they must hire a management company or an individual manager with significant training and experience in general management of similar lodging facilities. This manager must successfully complete the franchisor's mandatory training program, the Hospitality Management Program (HMP). General managers are also required to take Human Trafficking Prevention Training and 'Count on Us' training courses. All team members must complete specific 'Count on Us' trainings related to introduction, overview, certification, safe stay guidelines, and cleaning procedures. For facilities providing food service, applicable team members must complete food service training. The franchisee is solely responsible for all employment decisions, including recruitment, hiring, firing, scheduling, remuneration, personnel policies, training, benefits, safety, security, supervision, discipline, and termination. The franchisor reserves the right to require the franchisee to retain an approved third-party manager or management company if the franchisee lacks significant extended-stay hotel management experience or is receiving a Development Incentive, and may approve their management agreement. Franchisees and their manager/management company must ensure that no business or customer is diverted to competitors and no actions harm the brand's goodwill.