La Quinta by Wyndham Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,809,423 - $17,222,029
Franchise Fee
$25,000
Total US Locations
884
Business Summary
La Quinta Inn & Suites operates high-quality, mid-priced, limited-service guest lodging facilities that offer overnight accommodations and related services. These facilities typically feature interior corridors, a signature large format panel facade, LED exterior lighting, a porte cochère, energy management systems, and a flat roof. Guest rooms are equipped with high-definition flat panel televisions, large work surface desks with ergonomic chairs, Internet access, coffee makers, massage-type shower heads, curved shower rods, irons and ironing boards, microwave ovens, and mini refrigerators. Common areas include a great room with breakfast seating, a lobby with seating, a print station, a Bright Side Market, a fitness center, and a swimming pool. Each La Quinta Inn & Suites location provides a complimentary breakfast. The brand also offers options for dual-brand operations, combining a La Quinta Inn & Suites with a Hawthorn Suites by Wyndham at the same location, sharing a lobby and amenities.
Corporate History
La Quinta Franchising LLC was established on December 17, 2002, as a Nevada limited liability company. The company began offering franchises for La Quinta® Inn & Suites guest lodging facilities in January 2003. It operates as a subsidiary of Wyndham Hotel Group, LLC, which itself is wholly owned by Wyndham Hotels & Resorts, Inc. (WHR). WHR was formed on May 31, 2018, through a tax-free spin-off from Wyndham Worldwide Corporation, now known as Travel + Leisure Co. La Quinta Franchising LLC is solely focused on franchising La Quinta® Chain Facilities and providing associated products and services.
Financial Overview
Investment Range
$12,809,423 - $17,222,029
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$60,500
Royalty %
6%
Marketing %
3.5%
Equipment Costs (Low)
$931,797
Equipment Costs (High)
$1,337,093
Working Capital
$185,316
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's performance is guaranteed by its parent company, Wyndham Hotels & Resorts, Inc. (WHR), which appears financially stable. WHR reported net revenues of $1,408 million and net income of $289 million in 2024, maintaining its net income from the previous year. Cash and cash equivalents increased to $103 million in 2024. While total stockholders' equity saw a slight decrease, the company is actively managing its debt with hedging strategies. WHR incurred $47 million in transaction-related expenses and $15 million in restructuring expenses in 2024. Despite numerous pending litigation matters, particularly concerning sex trafficking claims against hotel facilities, WHR believes the potential exposure will not result in a material liability, with estimated maximum exposure ranging up to $11 million beyond current accruals.
Financing Details
La Quinta Franchising LLC offers several financing arrangements. Franchisees may be able to defer payment of their Initial Fee for up to 90 days, or until the facility opens, without interest unless defaulted. The company also provides Development Incentive financing for new construction and conversion facilities. These loans are not typically repaid unless the franchise agreement terminates or is transferred prematurely; instead, 1/20th of the original loan amount is forgiven annually. In case of default, the Development Incentive Note accrues interest at 18% per annum. Special programs include the "Women Own the Room (WOTR) Development Incentive," offering $2,500 per guest room, not exceeding 50% of the franchisee's equity, for women entrepreneurs. Additionally, the "Black Owners & Lodging Developers (BOLD) Support" program provides customized guidance and may include Development Incentives for Black entrepreneurs. The company reserves the right to modify or terminate these programs without notice.
Performance Metrics
Total US Locations
884
Franchised Units
884
Corporate Units
0
Avg Square Footage
56,392
Franchising Since
2003
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
La Quinta Franchising LLC is currently involved in several active lawsuits. Two pending cases, both filed in August 2022, allege breach of contract and unjust enrichment against former franchisees, with the franchisees filing counterclaims for breach of contract, fraud, and violations of franchise acts. Wyndham Hotel Group and its affiliates are also involved in a pending breach of contract lawsuit filed in May 2024 against LuxUrban Hotels, Inc. and others, with counterclaims of fraud and franchise act violations. Additionally, Wyndham Hotels & Resorts, Inc. and related entities are defendants in two purported class-action antitrust lawsuits filed in April and July 2024, alleging price fixing in the extended stay and general hotel markets through revenue management software, with motions to dismiss pending in one. An older class-action suit from 2014 in Canada, alleging unlawful charging of a 'Destination Marketing Fee,' is ongoing. Resolved litigation includes a 2016 class action regarding misleading resort fees and Terms of Use violations, which settled in 2020. Other resolved cases involved an antitrust suit over online advertising (settled in 2019), class actions regarding recorded phone calls (settled in 2016 and 2015), and an FTC lawsuit concerning cyberattacks (settled in 2015). La Quinta Franchising LLC has also initiated litigation against several current and terminated franchisees in 2024 for non-payment of outstanding amounts.
Bankruptcy History
La Quinta Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
If La Quinta Franchising LLC and the franchisee choose to renew the franchise, the franchisee must sign the then-current franchise agreement, which may have different terms and conditions, provide a general release of the franchisor and its affiliates, complete any required property improvement plan, and pay a standard renewal fee, if applicable.
Training & Support Program
Franchisor Assistance
La Quinta Inn & Suites provides extensive support to its franchisees. Before opening, the franchisor assists with site selection approval, designates a protected territory, creates a Property Improvement Plan for conversion facilities, provides access to prototype architectural drawings and consultation, and conducts inspections during construction or renovation. Franchisees receive access to the System Standards Manual and information on approved suppliers. Mandatory pre-opening services include general manager certification, opening training, digital photography services, and continuing education. After opening, ongoing support includes continuous access to Manual updates, invitations to Chain conferences and regional summits, and regular announced and unannounced inspections and mystery shops. Franchisees receive operational support via email, telephone, and the Chain's intranet site, including periodic field visits. The franchisor provides access to an online platform for brand-specific information, reporting, marketing, sales, loyalty, and revenue management resources. Technology support includes a Central Reservation System (CRS), Signature Reservation Service (SRS), a comprehensive revenue management program (Standard, Premium, and Premium Plus RMS), customer experience software (Medallia), the Wyndham Response Service, Remote Sales Service, a guest engagement platform (Wyndham Connect), and a branded email account. The company offers a comprehensive curriculum of hotel operations training, including workshops, webinars, and online courses, with an annual fee for continuing education.
Initial Training Hours
108
Training Location
Corporate designated locations in Parsippany, NJ or central North America, online, and on-site at the franchisee's facility.
Ongoing Support
After opening, La Quinta Inn & Suites franchisees receive continuous support through various channels. This includes ongoing access to System Standards Manual updates, participation in Chain conferences and regional summits, and announced/unannounced inspections and mystery shops. Operational support is provided via email, telephone, the Chain's Intranet site, and periodic field visits from the franchisor's team. Franchisees get access to a proprietary online platform offering brand-specific information, site and industry reporting, bill payment, and resources for marketing, global sales, loyalty, and revenue management, as well as ratings and reviews. The franchisor maintains a Central Reservation System (CRS) and requires participation in the Signature Reservation Service (SRS) program. A mandatory revenue management program (Standard, Premium, and Premium Plus RMS) is offered, along with access to a customer experience software platform (Medallia) for aggregating reviews. The Wyndham Response Service provides responses to guest surveys and reviews. Franchisees also participate in a Remote Sales Service, where a designated representative responds to sales leads. A guest engagement platform (Wyndham Connect) and a branded email account are provided. The franchisor offers a comprehensive Continuing Education curriculum for the entire hotel team for an annual fee, including live workshops, webinars, online courses, and other educational resources.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
absentee-allowed
Territory Type
Protected
Territory Size Requirements
La Quinta by Wyndham negotiates a Protected Territory for each Facility. This territory will not have other new Chain Facilities, though existing ones may renew, relicense, expand, or be replaced by a similar-sized facility. The negotiations consider factors such as the market type (urban/suburban/rural), population density, demographics, natural travel boundaries, proximity to demand generators (airports, highways, attractions), seasonality of occupancy, and weekend versus weekday occupancy. The Protected Territory can be defined as a radius from the Facility's door, an irregular area bounded by roads or natural features, or by latitude and longitude, and will be described in the Franchise Agreement. There is no minimum size for the Protected Territory. La Quinta by Wyndham or its affiliates may operate or franchise other lodging facilities or competitive brands outside of the Protected Territory. During the term, the franchisee and its owners cannot operate a similar business that shares common areas or amenities with the La Quinta by Wyndham Facility.
Staffing Notes
La Quinta Inn & Suites recommends, but does not require, personal participation by the franchisee in the direct operation of the facility. If the franchisee chooses not to manage the facility personally, they must hire a management company or an individual manager with substantial training and experience in general management of similar lodging facilities. The facility's general manager is required to successfully complete the franchisor's Hospitality Management Program. The franchisee is entirely responsible for all employment decisions, including hiring, firing, scheduling, and personnel policies, even if they receive advice from the franchisor. All personnel designated by the franchisor must attend and complete initial and ongoing training programs, including mandatory Human Trafficking Prevention Training and Count on Us training for general managers and team members.