Days Inn Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$233,381 - $7,179,979
Franchise Fee
$8,000
Total US Locations
1,257
Business Summary
Days Inns Worldwide, Inc. operates and supports franchises for Days Inn and Days Inn by Wyndham guest lodging facilities. These facilities offer overnight accommodations and related services, ranging from comfortable accommodations without luxury amenities to mid-market and upper mid-market hotels, including options with suites.
Corporate History
Days Inns Worldwide, Inc. was incorporated in Delaware on May 21, 1991, originally under the name Days Inns of America, Inc., which it changed to Days Inns Worldwide, Inc. on March 31, 2000. The company began offering franchises for its guest lodging facilities in February 1992. Days Inns Worldwide, Inc. operates as a subsidiary of Wyndham Hotel Group, LLC, which itself is wholly owned by Wyndham Hotels & Resorts, Inc. (WHR). WHR became a standalone public company on June 1, 2018, following a tax-free spin-off from its former parent, Wyndham Worldwide Corporation. Days Inns Worldwide, Inc. exclusively focuses on franchising and does not own or manage any lodging facilities.
Financial Overview
Investment Range
$233,381 - $7,179,979
Franchise Fee (Low)
$8,000
Franchise Fee (High)
$35,000
Royalty %
5.5%
Marketing %
3.8%
Equipment Costs (Low)
$36,209
Equipment Costs (High)
$659,434
Working Capital
$162,924
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Wyndham Hotels & Resorts, Inc., the parent company of Days Inns Worldwide, Inc., appears to be in a stable financial position. As of December 31, 2023, the company reported total assets of $4,033 million, a net income of $289 million for the year, and strong cash flow from operating activities at $376 million. While the company's current liabilities ($459 million) exceeded its current assets ($373 million) in 2023, indicating negative working capital, the overall financial performance and long-term debt levels of $2,164 million suggest a healthy operation. The independent auditors issued an unqualified opinion on the financial statements, with no concerns raised about the company's ability to continue as a going concern.
Financing Details
Days Inns Worldwide, Inc. offers several financing options to its franchisees. The company may defer the Initial Fee payment for up to 90 days or until the facility opens, with no interest unless the payment is late, in which case it accrues at 18% annually. Additionally, Days Inns Worldwide, Inc. provides Development Incentives, which are loans for new construction and conversion facilities. These loans are non-repayable unless the franchise agreement is terminated or transferred early, and a portion of the loan is forgiven annually. If in default, these loans also accrue interest at 18% per annum. Special Development Incentives are available for qualifying women-owned franchisees through the "Women Own the Room" program, offering approximately $2,500 per guest room up to 50% of equity investment. The "Black Owners & Lodging Developers" program may also include Development Incentives for eligible Black entrepreneurs.
Performance Metrics
Total US Locations
1,257
Franchised Units
1,257
Corporate Units
0
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
27
Litigation Summary
Days Inns Worldwide, Inc. has a history of litigation, totaling 27 distinct cases disclosed. This includes 3 pending cases against the franchisor or its affiliates, dating from 2014 to 2021, covering alleged improper fees, franchise agreement breaches, and consumer protection issues. Many of these older cases were class actions or related to data security. Additionally, Days Inns Worldwide, Inc. and its affiliates were involved in 10 resolved cases, including class action settlements related to resort fees and privacy, and a cyberattack case with the FTC that resulted in an injunction but no monetary liability. More recently, from 2023 to early 2024, Days Inns Worldwide, Inc. initiated 17 lawsuits against both current and terminated franchisees, primarily for non-payment of outstanding amounts owed, breach of contract, and some for infringement.
Bankruptcy History
Days Inns Worldwide, Inc. reports no bankruptcy history for itself or its key management personnel in Item 4 of its FDD.
Agreement Terms
Initial Term
15 years
Renewal Conditions
Days Inns Worldwide, Inc. does not grant franchisees automatic renewal or extension rights. However, if Days Inns Worldwide, Inc. and a franchisee mutually agree to renew, the franchisee would be required to sign the then-current franchise agreement, which might have significantly different terms and conditions. The franchisee would also need to pay the Relicense Fee, calculated using the same formula as the Initial Fee at the time of renewal.
Training & Support Program
Franchisor Assistance
Days Inns Worldwide, Inc. provides pre-opening assistance, including site designation and Protected Territory definition. For conversion or transfer facilities, the company inspects the property and provides a Property Improvement Plan. For new construction, it offers architects access to Prototype Plans and consults on design, reviewing architectural plans and conducting inspections to ensure compliance with System Standards. The franchisor furnishes specifications for required products/services and information about Approved Suppliers. It also reviews custom interior design packages for a fee and provides Mandatory Support Services for opening, along with initial training. An optional online media campaign is available for purchase to support the facility's opening. After opening, Days Inns Worldwide, Inc. offers continuous access to its confidential Standards of Operation and Design Manuals and holds Chain conferences (every 18-24 months) and periodic regional summits. Days Inns Worldwide, Inc. conducts announced and unannounced inspections and mystery shops. Operational support is available via email, telephone, the Chain's online platform, and periodic on-site visits from its field support team. Days Inns Worldwide, Inc. provides access to a proprietary online platform offering brand-specific information, reporting tools, marketing, sales, loyalty, and revenue management resources. The company offers a Central Reservation System (CRS) and a Signature Reservation Service (SRS) with trained agents for reservations. Optional comprehensive revenue management programs (Standard and Premium) are available for additional fees. Days Inns Worldwide, Inc. also provides a customer experience software platform (Medallia) for reviews and responses, an optional remote local sales service for lead generation, and a guest engagement platform for mobile communication, all with ongoing training and support.
Initial Training Hours
108
Training Location
Days Inns Worldwide, Inc. offers training through various formats and locations. The Hospitality Management Program (HMP) for general managers can be a hybrid format (in-person at corporate offices in Parsippany, NJ, local to corporate offices, or central North American locations, combined with virtual components) or entirely virtual. Opening Training for staff is conducted on-site at the franchisee's facility. Human Trafficking Prevention Training and Count on Us Training are delivered via Wyndham University's web-based training modules (virtual). New Owner Orientation may be provided in-person at corporate offices or other designated locations.
Ongoing Support
Days Inns Worldwide, Inc. provides continuous access to its confidential Standards of Operation and Design Manual, which can be amended. The company holds Chain conferences approximately every 18 to 24 months, which may be multi-brand, and periodic regional summits throughout the year. Days Inns Worldwide, Inc. or its contractors conduct announced and unannounced inspections and mystery shops of the facilities. Operational support and information about the Chain are provided via email, telephone, or the Chain's internal online platform. Field support teams may periodically visit facilities for on-site operational support and consultations. Days Inns Worldwide, Inc. provides access to a proprietary online platform offering brand-specific information, reporting tools, industry insights, bill payment, marketing, global sales, loyalty, and revenue management resources, as well as access to ratings and reviews. Information about Approved Suppliers is also continuously provided. The company operates a computerized Central Reservation System (CRS) and a Signature Reservation Service (SRS) with trained agents for reservations. Optional comprehensive revenue management programs (Standard and Premium levels) are available for additional fees, offering inventory management, strategic positioning, and promotions. Days Inns Worldwide, Inc. provides a customer experience software platform (Medallia) that aggregates online reviews and surveys, and responds to certain reviews on behalf of the facility. An optional remote local sales service is offered for a monthly fee, where a designated representative supports the facility by responding to sales leads and soliciting new business. A guest engagement platform for mobile text communication is provided at no additional cost. Days Inns Worldwide, Inc. also provides a comprehensive curriculum of hotel operations training, known as Continuing Education, available to all hotel team members for an annual fee of $600.
Franchise Requirements
Ideal Candidate Profile
Days Inns Worldwide, Inc. is looking for franchisees who may or may not personally manage the facility; however, if the franchisee does not manage it, they must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities. Days Inns Worldwide, Inc. may require franchisees without significant hotel management experience to retain an approved third-party manager. Financial strength and creditworthiness of the franchisee and their principals are also important. The franchisor also actively supports and seeks women and Black entrepreneurs for hotel ownership through specific incentive programs.
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
Days Inns Worldwide, Inc. negotiates the size and boundaries of each protected territory with the franchisee before the franchise agreement is signed. These negotiations consider several factors, including the market type (urban, suburban, rural), population density, demographics, natural geographical boundaries, and demand generators like airports, highways, and tourist attractions. The territory may be defined by a specific radius from the facility, an irregular area bounded by streets or natural features, or by latitude and longitude. There is no minimum size for a protected territory that Days Inns Worldwide, Inc. offers.
Staffing Notes
Days Inns Worldwide, Inc. requires that the facility be managed by an individual manager or a management company with significant experience in general management of similar lodging facilities, even if the franchisee does not participate directly in operations. Days Inns Worldwide, Inc. may mandate the retention of an approved third-party manager if the franchisee lacks sufficient hotel management experience. All general managers must complete mandatory initial training programs, including the Hospitality Management Program, Human Trafficking Prevention Training, and Count on Us Training. For new construction or conversion facilities, staff also undergo opening training. Additionally, Days Inns Worldwide, Inc. provides ongoing learning and development support for the entire hotel team through a comprehensive "Continuing Education" curriculum and regional workshops.