Trademark Collection by Wyndham Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$225,131 - $19,040,645
Franchise Fee
$16,000
Total US Locations
89
Business Summary
Trademark Collection by Wyndham operates a system of guest lodging facilities offering overnight accommodations and related services. Each Trademark Collection by Wyndham hotel provides unique, upper-midscale accommodations with flexible food and beverage, fitness amenities, and meeting spaces. These facilities typically have a strong independent or historic presence in their local market and operate under their existing name followed by the phrase ", Trademark Collection by Wyndham" for branding.
Corporate History
TMH Worldwide, LLC, the franchisor for Trademark Collection by Wyndham, was formed on January 26, 2017, in Delaware. It operates as a subsidiary of Wyndham Hotel Group, LLC, which in turn is owned by Wyndham Hotels & Resorts, Inc. Wyndham Hotels & Resorts, Inc. was established on May 31, 2018, as a result of a tax-free spin-off from Wyndham Worldwide Corporation. TMH Worldwide, LLC began offering memberships for its Trademark Collection Chain Facilities in May 2017. The Trademark Collection brand itself focuses on unique, upper-midscale hotels that maintain an independent or historic presence in their local markets. The company's affiliates, such as Super 8, have been franchising hotel brands in the United States since as early as 1975.
Financial Overview
Investment Range
$225,131 - $19,040,645
Franchise Fee (Low)
$16,000
Franchise Fee (High)
$40,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (High)
$882,061
Working Capital
$168,484
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Wyndham Hotels & Resorts, Inc., the parent company and guarantor of Trademark Collection by Wyndham, reports an unqualified audit opinion on its financial statements as of December 31, 2024. The company maintains an internal control over financial reporting that management believes is effective. Financially, Trademark Collection by Wyndham's parent company has a liability for its loyalty program of $105 million, and total deferred revenues of $290 million as of December 31, 2024. The company's long-term debt totals $2,463 million, and it utilizes interest rate swaps to manage interest rate risks. The company also has an allowance for doubtful accounts of $61 million for trade receivables. The company has a $3 million accrual for legal contingencies. It also holds guarantees for post-closing credit support related to the sale of its European Vacation Rentals business, totaling $127 million, with a fair value of $61 million.
Financing Details
Trademark Collection by Wyndham generally does not offer direct or indirect financing arrangements to its franchisees, with specific exceptions. Franchisees may be eligible for an Affiliation Fee Deferral, allowing the initial fee to be paid in one to three installments over a short term, typically 90 days or until the facility opens, without interest unless payments are late. The franchisor may also offer Development Incentive Financing, which are loans for new construction or conversion facilities. These incentives are based on various factors like room count and location, and a portion of the loan is forgiven annually over the term of the agreement (typically 20 years), with no interest unless default occurs. There are also specific Development Incentive programs, such as 'Women Own the Room' (WOTR) for women entrepreneurs, targeting $2,500 per guest room (up to 50% of equity investment), and 'Black Owners & Lodging Developers' (BOLD) Support for Black entrepreneurs, which may include a Development Incentive. For any financing, franchisees and their significant owners (and spouses in certain states) must sign the respective notes. Franchisees may also request a Lender Notification Agreement for third-party lenders, but the franchisor is not obligated to enter into agreements with these lenders.
Performance Metrics
Total US Locations
89
Franchised Units
89
Corporate Units
0
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
10
Litigation Summary
Trademark Collection by Wyndham and its affiliates have been involved in several legal matters. Currently, TMH Worldwide, LLC (the franchisor) is engaged in a pending lawsuit, filed in May 2024, against LuxUrban Hotels, Inc. and related entities for breach of contract, seeking various fees and damages. LuxUrban Hotels has filed counterclaims alleging breach of contract, fraud, and franchise law violations, which TMH Worldwide, LLC denies. Additionally, the franchisor's parent company, Wyndham Hotels & Resorts, Inc., is a defendant in two pending class action lawsuits, filed in July 2024 and April 2024, respectively. These cases allege price-fixing and unfair competition in the extended stay and general hotel guest room markets through the use of revenue management software. Another long-standing class action from 2014, originating in Canada, is pending against Wyndham entities for allegedly charging improper "Destination Marketing Fees." Over the past few years, Wyndham entities have resolved several other lawsuits. These include a 2016 class action over misleading "resort fees" and Terms of Use (settled in 2020), a 2018 antitrust suit regarding online advertising bid rigging (settled in 2019 for a small amount), a 2014 dispute with franchisees over wrongful termination (settled in 2015 with payment from franchisees), and two class actions from 2012 alleging privacy act violations for recording phone calls (settled in 2015 and 2016). A 2012 lawsuit by the FTC concerning cyberattacks was also settled in 2015 without findings of liability or monetary relief.
Bankruptcy History
Trademark Collection by Wyndham has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Trademark Collection by Wyndham generally does not offer renewal or extension rights. However, if applicable law requires renewal rights and a franchisee wishes to renew, the franchisee must apply for a renewal membership agreement 6 to 9 months before expiration. To be eligible, franchisees must meet the then-current requirements for new applicants, which may include signing a new membership 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 the then-current Reaffiliation Fee (currently calculated the same as the Affiliation Fee).
Training & Support Program
Franchisor Assistance
Trademark Collection by Wyndham provides comprehensive support to its franchisees. Before a facility opens, the franchisor assists with site selection approval, inspects conversion/transfer facilities to create a Property Improvement Plan (PIP), consults on architectural plans for new construction, and conducts construction/renovation inspections. Franchisees receive the confidential System Standards Manual, written specifications for required products and services, and information on Approved Suppliers. Mandatory pre-opening services include general manager certification, opening training, and digital photography. After opening, Trademark Collection by Wyndham provides continuous access to the System Standards Manual, hosts Chain conferences approximately every 18-24 months, and conducts announced and unannounced inspections. Ongoing operational support is available via email, telephone, and the Chain's intranet site, with optional on-site support for a fee. Franchisees also get information about Approved Suppliers, participate exclusively in the Central Reservation System, and are required to use the Signature Reservation Service, where agents handle reservation inquiries. Optional revenue management programs and remote local sales services are offered for additional fees. The franchisor also provides access to a customer experience software platform (Medallia) and a guest engagement platform (Wyndham Connect), along with a branded email account.
Initial Training Hours
74
Training Location
Training for the general manager can be a hybrid format (in-person and virtual) or virtual-only. In-person components are held at the corporate offices in Parsippany, NJ, or other central locations in North America. Opening training for staff is conducted on-site at the franchisee's facility.
Ongoing Support
Trademark Collection by Wyndham offers ongoing support through various channels. After opening, franchisees maintain access to the confidential Standards of Operation and Design Manual and the Wyndham Rewards Front Desk Guide, which outline System Standards. The franchisor holds mandatory Chain conferences approximately every 18 to 24 months, which may be part of a larger Wyndham Hotels & Resorts multi-brand event. Franchisees also receive ongoing operational support and information via email, telephone, or the Chain's intranet site. Optional on-site operational support from a field team member is available for a fee. The franchisor provides continued information about Approved Suppliers, operates an exclusive Central Reservation System for bookings, and requires participation in its Signature Reservation Service, where professional agents handle guest inquiries. Optional revenue management programs and remote local sales services are also offered for additional fees. Franchisees are provided access to a customer experience software platform (Medallia) to aggregate reviews and a guest engagement platform (Wyndham Connect), along with a branded email account. Additionally, Trademark Collection by Wyndham offers a comprehensive curriculum of hotel operations training through its 'Continuing Education' program, which costs $1,200 annually and includes access to Wyndham University, regional workshops, and service culture materials. Remedial training and product quality training may be required for a fee if performance issues arise. General managers are also required to attend annual national leadership conferences and certain personnel may need to attend regional meetings.
Franchise Requirements
Ideal Candidate Profile
Trademark Collection seeks individuals or entities to operate guest lodging facilities. While personal participation in direct operations is recommended, it is not mandatory. If the franchisee does not personally manage, they must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities. The general manager must successfully complete the franchisor's training program. Trademark Collection may require a third-party manager if the franchisee lacks significant hotel management experience or is receiving a Development Incentive. Franchisee owners, general partners, or controlling shareholders/members must typically guarantee obligations, and spouses may also be required to sign guarantees in certain states. Financial liquidity and financial resources are required to perform obligations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Trademark Collection by Wyndham franchisees will not receive an exclusive territory. The standard Membership Agreement does not provide an exclusive or protected territory. Franchisees may face competition from other Trademark Collection by Wyndham facilities, other lodging facilities operating under the Trademark tradename, franchisees of the franchisor's Lodging Affiliates, or outlets an affiliate of the franchisor owns or manages. The franchisor or its affiliates can own, develop, and operate other hotels, lodging facilities, timeshare resorts, restaurants, or other businesses of any type whatsoever, under any trade name, trademark, and service mark at any location except the franchisee's specific location, including adjacent or proximate locations, and these may compete directly with the franchisee's facility. When business circumstances warrant, the franchisor may, in its sole discretion, grant some territorial protection after considering factors like the size and characteristics of the relevant hotel trading market, the franchisee's facility, demographics, concentration and proximity of demand generators (e.g., meeting facilities, commercial offices, tourist attractions). If granted, a protected territory may be defined as a radius from the front door of the facility, an irregular area bounded by streets, highways, governmental boundaries, natural boundaries, or by latitude and longitude. However, there is no minimum protected territory offered. Such protection would not extend to hotels, timeshares, or other lodging facilities under other brands owned, managed, or franchised by the franchisor or its affiliates, nor to the conversion of another hotel to a Trademark Collection by Wyndham facility through an acquisition. Any Trademark Collection by Wyndham facility within a protected territory when the Membership Agreement becomes effective may be renewed, reissued, expanded, or replaced.
Staffing Notes
Trademark Collection by Wyndham requires that all personnel employed at the franchisee's facility in designated positions must attend and successfully complete initial and ongoing training programs. The general manager must complete the Hospitality Management Program within 90 days of the facility's opening (or assuming the role). General managers are also required to complete Human Trafficking Prevention Training and 'Count on Us' training course within 90 days, with the general manager certifying that all hotel staff have also completed human trafficking prevention training. Additionally, specific team members, such as room attendants, must complete trainings related to cleaning, laundry, and safety, and food service staff must complete food service training if applicable. If a franchisee does not personally manage the facility, they must hire a management company or individual manager with significant training and experience in general management of similar lodging facilities. The franchisor reserves the right to require a third-party manager if the franchisee lacks significant hotel management experience or is receiving a Development Incentive. Franchisees are solely responsible for all employment decisions, including recruitment, hiring, scheduling, and personnel policies for their staff.