Wyndham Grand Franchise

Financing Details

Wyndham Grand generally does not offer direct or indirect financing arrangements to franchisees, except for specific programs. They may defer the payment of the Initial Fee, typically for up to 90 days or until the facility opens, with no interest unless payments are overdue. Wyndham Grand also offers Development Incentive loans for new construction and conversion facilities, which are not repaid unless the franchise agreement terminates or is transferred early, and a portion is forgiven annually. These incentive loans bear no interest unless in default. Additionally, Wyndham Grand provides special Development Incentives for women entrepreneurs through the 'Women Own the Room' (WOTR) program, targeting $2,500 per guest room, not exceeding 50% of the franchisee's equity investment, along with personalized guidance. Similar customized support and potential Development Incentives are available for Black entrepreneurs through the 'Black Owners & Lodging Developers' (BOLD) program. Franchisees can also request a Lender Notification Agreement for their chosen lenders.

Litigation Summary

Wyndham Franchisor, LLC is currently involved in one pending lawsuit, filed in July 2023, where it is suing defendants for breach of contract and seeking liquidated damages and recurring fees. The defendants have filed counterclaims for breach of contract, violation of the Alberta Franchises Act, and tortious interference with prospective economic advantage. Additionally, Wyndham Grand's parent company or affiliates are involved in four pending lawsuits. These include a May 2024 breach of contract suit against LuxUrban Hotels, two class action antitrust suits from 2024 alleging price-fixing with revenue management software, and an ongoing December 2014 class action lawsuit in Canada regarding Destination Marketing Fees. The document also discloses several resolved litigations against Wyndham Grand or its affiliates from prior to 2022, concerning matters such as resort fees, alleged violations of FTC rules, surreptitious phone call recording, cyberattacks, and an antitrust claim. Wyndham Grand has not commenced any litigation against its franchisees in the past fiscal year.

Renewal Conditions

Wyndham Grand states that neither party has renewal rights or options. However, if applicable law requires renewal rights, franchisees must apply for a renewal agreement at least six to nine months before expiration. Conditions for renewal may include signing the then-current franchise agreement (which may have different terms and fees), executing a general release of Wyndham Grand and its affiliates, completing a property improvement plan, and paying a standard renewal fee, if applicable.

Staffing Notes

Wyndham Grand requires all personnel in designated positions to attend and successfully complete initial and ongoing training programs. The franchisee is solely responsible for all employment decisions, including recruitment, hiring, firing, scheduling, and remuneration. If the franchisee does not personally manage the facility, they must hire a management company or an individual manager with significant training and experience in managing similar lodging facilities. The facility's general manager must successfully complete the Hospitality Management Program (HMP), Human Trafficking Prevention Training, and Count on Us training, and attend an annual national leadership conference. All team members are required to complete Count on Us training, with specific additional training for room attendants and food service staff. The franchisor reserves the right to require a third-party manager if the franchisee lacks sufficient hotel management experience, and to approve any management agreement and key employees' confidentiality covenants. Wyndham Grand emphasizes compliance with its service culture 'Count On Me!' through its training programs.