Howard Johnson, Howard Johnson by Wyndham Franchise
Cost, fees, owner earnings, closure rate and litigation for a Howard Johnson, Howard Johnson by Wyndham franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Howard Johnson, Howard Johnson by Wyndham discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 data: 60 qualified facilities. Average ADR $111.14, occupancy 55.0%, RevPAR $61.11. Competitive RevPAR index 103.5%. Chain scale index 126.0%. Central Reservation System 84.5% contribution.
What a Howard Johnson, Howard Johnson by Wyndham franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $349,981 – $11,896,542 | Item 7 — franchisor's own low/high estimate |
Royalty 5% GRR; Room Sales Charge 1.5% GRR; Marketing 2% GRR. PMS setup $6,000-$22,100. Numerous technology and loyalty program fees apply.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Howard Johnson, Howard Johnson by Wyndham system size and owner turnover
| Total outlets | 133 |
| Ceased operations | 8 |
| Terminated by franchisor | 3 |
| Transferred to new owners | 3 |
| Closure rate | 6.0% of outlets |
6 outlets closed 2025; 9 closed 2024; 5 closed 2023. System declining: 133 units (2025) vs 148 (2023).
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Howard Johnson, Howard Johnson by Wyndham worth it? — how it compares to 436 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $349,981 | pricier than 77% of peers |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 6.0% of outlets | worse than 77% of peers |
| Disclosed lawsuits | 11 | more litigious than 95% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Howard Johnson, Howard Johnson by Wyndham
The franchisor's framing: 2025 data: 60 qualified facilities. Average ADR $111.14, occupancy 55.0%, RevPAR $61.11. C… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Howard Johnson, Howard Johnson by Wyndham franchise — frequently asked
- How much does a Howard Johnson, Howard Johnson by Wyndham franchise cost?
- The FDD lists a total initial investment of about $349,981–$11,896,542, including a $35,000 initial franchise fee.
- How much do Howard Johnson, Howard Johnson by Wyndham franchise owners make?
- 2025 data: 60 qualified facilities. Average ADR $111.14, occupancy 55.0%, RevPAR $61.11. Competitive RevPAR index 103.5%. Chain scale index 126.0%. Central Reservation System 84.5% contribution. We grade this disclosure B for honesty.
- What are the Howard Johnson, Howard Johnson by Wyndham franchise fees?
- Howard Johnson, Howard Johnson by Wyndham's FDD discloses a $35,000 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% GRR; Room Sales Charge 1.5% GRR; Marketing 2% GRR. PMS setup $6,000-$22,100. Numerous technology and loyalty program fees apply.
- What is the Howard Johnson, Howard Johnson by Wyndham franchise profit margin?
- Howard Johnson, Howard Johnson by Wyndham does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 data: 60 qualified facilities. Average ADR $111.14, occupancy 55.0%, RevPAR $61.11. Competitive RevPAR index 103.5%. Chain scale index 126.0%. Central Reservation System 84.5% contribution. Recurring fees alone take about 7% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Howard Johnson, Howard Johnson by Wyndham franchise failure rate?
- 6 outlets closed 2025; 9 closed 2024; 5 closed 2023. System declining: 133 units (2025) vs 148 (2023).
- How many Howard Johnson, Howard Johnson by Wyndham locations are there?
- Howard Johnson, Howard Johnson by Wyndham's FDD reports 133 total outlets, with 8 that ceased operations in the most recent reporting year and 3 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Howard Johnson, Howard Johnson by Wyndham have complaints or lawsuits?
- Howard Johnson, Howard Johnson by Wyndham discloses 11 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Howard Johnson, Howard Johnson by Wyndham franchise worth it?
- It depends on the numbers, not the pitch. Howard Johnson, Howard Johnson by Wyndham scores B on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 11 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Howard Johnson, Howard Johnson by Wyndham or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.