Super 8 Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$270,280 - $6,137,534
Franchise Fee
$5,000
Total US Locations
1,419
Business Summary
Super 8 by Wyndham operates guest lodging facilities that offer overnight accommodations and related services. These facilities provide an economy lodging service, offering coffee and a complimentary breakfast item, but generally without full restaurants or many amenities found in other hotels. Super 8 by Wyndham hotels cater to business and leisure travelers, vacationing families, and senior citizen travelers, providing a toll-free reservation number and a brand website for guests.
Corporate History
Super 8 Worldwide, Inc. was incorporated in South Dakota on October 5, 1971. The company, originally known as Super 8 Motels, Inc., changed its name to Super 8 Worldwide, Inc. in March 2008. Super 8 Worldwide, Inc. has been offering franchises for its Chain guest lodging facilities since 1975 and operates exclusively as a franchisor, not owning or managing any of its lodging facilities directly. The company is part of a larger corporate structure, being a subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by Wyndham Hotels & Resorts, Inc. (WHR). WHR itself was created in 2018 through a tax-free spin-off of the hotel and transient lodging businesses from Wyndham Worldwide Corporation.
Financial Overview
Investment Range
$270,280 - $6,137,534
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$25,000
Royalty %
5.5%
Marketing %
3%
Equipment Costs (Low)
$94,420
Equipment Costs (High)
$643,972
Working Capital
$143,179
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Wyndham Hotels & Resorts, Inc., the parent company and guarantor for Super 8 Worldwide, Inc.'s obligations, demonstrates a sound financial position based on its audited financial statements. As of December 31, 2023, the company reported total assets of $4,033 million and total liabilities of $3,287 million, resulting in total stockholders' equity of $746 million. Net income for 2023 was $289 million, with $376 million in net cash provided by operating activities. The company's long-term debt stands at $2,164 million, with maturities extending to 2030, and it actively uses interest rate swaps to manage associated risks. Auditors issued an unqualified opinion, indicating the financial statements present fairly in all material respects, and no 'going concern qualification' was noted. The company also maintains an allowance for doubtful accounts for trade receivables and has a stock repurchase program with significant remaining availability.
Financing Details
Super 8 Worldwide, Inc. does not offer general financing for its franchisees directly or indirectly, except for specific programs. Franchisees may be eligible for an Initial Fee Deferral, allowing payment of the initial franchise fee to be postponed for a short period, typically 90 days or until the facility opens, with no interest unless the payment becomes overdue. Additionally, the franchisor may offer Development Incentive Financing, which is a loan for new construction and conversion facilities. This loan is generally not repaid unless the franchise agreement terminates or is transferred before the end of its term, with 1/20th of the original amount being forgiven annually. The Development Incentive bears no interest unless in default. Special financing programs are also available, such as the Women Own the Room (WOTR) Development Incentive, offering $2,500 per guest room (up to 50% of equity investment) for women-owned franchisees, and customized support through the Black Owners & Lodging Developers (BOLD) program, which may also include a Development Incentive. Franchisees can request a Lender Notification Agreement for third-party financing, but Super 8 Worldwide, Inc. is not obligated to enter into such arrangements.
Performance Metrics
Total US Locations
1,419
Franchised Units
1,419
Corporate Units
0
Franchising Since
1975
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
Super 8 Worldwide, Inc. (the franchisor) has several ongoing legal disputes. A class action lawsuit from 2014 in Canada is pending against the franchisor and its affiliates, alleging that hotels improperly charged a "Destination Marketing Fee" and seeking $403 million in restitution and damages. Another pending case, filed in June 2022, involves a franchisee seeking a judgment that they have no remaining financial obligations after prematurely terminating their franchise agreement due to casualty and force majeure, with Super 8 Worldwide, Inc. having filed a counterclaim for breach of contract and unjust enrichment. Additionally, Super 8 Worldwide, Inc. has filed multiple lawsuits in 2023 and 2024 against current and terminated franchisees, primarily for breach of contract and non-payment of outstanding fees. Past resolved cases against the franchisor include a 2014 lawsuit by former franchisees alleging Minnesota Franchise Act violations and breach of contract, which settled in 2015. Litigation involving Wyndham Hotels & Resorts, Inc. and its lodging affiliates has also been resolved, covering issues such as alleged misleading resort fees, antitrust claims, surreptitious phone call recordings, and an FTC lawsuit concerning cyberattacks.
Bankruptcy History
Super 8 Worldwide, Inc. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Super 8 Worldwide, Inc. explicitly states that neither party has renewal rights or options. However, if applicable law mandates renewal rights, Super 8 by Wyndham franchisees would need to apply for a renewal franchise agreement between six and nine months before expiration. Conditions for renewal under such circumstances may include signing the franchisor's then-current franchise agreement (which could have materially different terms and fees), executing a general release of the franchisor and its affiliates, completing a property improvement plan, and paying a standard renewal fee, if applicable at that time.
Training & Support Program
Franchisor Assistance
Super 8 by Wyndham provides comprehensive support to its franchisees. Before opening, the franchisor assists with site selection approval, designates a Protected Territory, and for existing hotels being converted, performs an inspection to create a Property Improvement Plan (PIP). For new constructions, it offers access to prototype architectural drawings, consults with architects, and reviews architectural plans. The franchisor conducts inspections during construction or renovation to ensure compliance with System Standards and provides a System Standards Manual. Mandatory support services include arranging for professional digital photographs and providing initial property supplies for conversion facilities, as well as opening training for new construction facilities. An optional online media campaign is also offered. After opening, ongoing support includes continuous access to the System Standards Manual, Chain conferences (held every 18-24 months), and announced and unannounced inspections. Franchisees receive operational assistance and information via email, telephone, and the Chain's intranet site, with periodic on-site visits from field support teams. Super 8 by Wyndham also offers information on Approved Suppliers, operates a computerized Central Reservation System (CRS), and provides a Signature Reservation Service (SRS) where reservation inquiries are handled by their agents. Optional revenue management programs and remote local sales services are available for additional fees. Technology support includes access to a customer experience software platform, a branded email account, a data platform for revenue management, an OTA commission reconciliation program, a mobile tipping platform, and a guest engagement platform. Training for general managers is mandatory, covering a Hospitality Management Program and human trafficking prevention. Ongoing learning and development support is available for the entire hotel team for an annual fee.
Initial Training Hours
108
Training Location
Initial general manager training involves a hybrid format (in-person at corporate offices in Parsippany, NJ, or other central North American locations, and virtual options). Other training programs, such as Human Trafficking Prevention and Count on Us, are delivered virtually via Wyndham University. Opening training for staff is conducted on-site at the franchisee's facility.
Ongoing Support
After opening, Super 8 by Wyndham provides extensive ongoing support to its franchisees. This includes continuous access to the confidential System Standards Manual, which is regularly updated. The franchisor holds Chain conferences approximately every 18 to 24 months, which may be multi-brand events, and conducts announced and unannounced inspections of the facilities. Operational support and information are available via email, telephone, and the Chain's intranet site, with periodic on-site visits from the field support team. Super 8 by Wyndham also offers information about Approved Suppliers, manages a computerized Central Reservation System (CRS), and provides a Signature Reservation Service (SRS) where calls and digital chat inquiries are handled by their professional agents. Optional comprehensive revenue management programs (Standard and Premium) are available for an additional fee. Franchisees also gain access to a customer experience software platform (currently Medallia) for reviews and surveys, and can opt into remote local sales services. Ongoing training for the entire hotel team is provided for an annual fee of $600, including regional workshops, access to Wyndham University, and service culture materials. General managers are required to attend an annual national leadership conference. Additionally, remedial training or product quality training may be mandated for staff if performance issues like failing quality assurance scores or significant guest complaints occur.
Franchise Requirements
Ideal Candidate Profile
Super 8 by Wyndham requires that if a franchisee does not personally manage their facility, they must hire a management company or an individual manager who possesses significant training and experience in the general management of similar lodging facilities. This manager must successfully complete the franchisor's training program. If an owner does not have substantial experience managing a hotel themselves, Super 8 by Wyndham reserves the right to require them to retain an approved third-party manager or management company.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Super 8 by Wyndham will assign a 'Protected Territory' where it will not own, operate, lease, manage, franchise, or license another Chain Facility without the franchisee's consent. This territory may be defined as a radius from the facility's door, an irregular area bounded by streets, highways, governmental jurisdictions, or natural boundaries, or by latitude and longitude, described in words or depicted on a map, or both. The specific size and definition of the Protected Territory are negotiated before the franchise agreement is signed, taking into account factors such as the nature of the market (urban/suburban/rural), population density, demographics, proximity to transportation, major attractions and destinations, commercial development, traffic patterns, competition, accessibility, and compatibility with the proposed use. There is no minimum Protected Territory size offered.
Staffing Notes
Super 8 by Wyndham requires that if a franchisee does not personally manage the facility, they must hire a manager or a management company with significant training and experience in general management of similar lodging facilities. This manager must successfully complete the franchisor's training program, including the Hospitality Management Program, Human Trafficking Prevention Training, and Count on Us® Training. All personnel designated for training must attend and complete required programs. For new construction facilities, opening training is conducted on-site for staff, and continuing education is available for the entire hotel team annually. Franchisees are solely responsible for all employment decisions, including hiring, training, and supervision of their staff.