Verified — real FDD extraction
SBA-eligible · directory code S2508 since 2018
WaterWalk Extended Stay by Wyndham
Other · independent · est. —
WaterWalk Extended Stay by Wyndham is an extended-stay lodging brand offering apartment-style suites with kitchens for longer stays, including both furnished short-term and unfurnished lease options. A franchisee owns and operates a hotel property under the Wyndham system, managing rooms, housekeeping, and guest services. The business is hospitality/lodging.
WaterWalk Extended Stay by Wyndham net unit count grew +22.2% from 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Too new to judge
Distress
5 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.
Exit rate · latest year
50.0%
fiscal 2023, per Item 20
Cost to open
$1.2M–$26.9M
Item 7 total investment range
SBA loan defaults
Too few resolved
11 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 2 of 4 franchised outlets left the system — a 50.0% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 9 | 9 | 8 |
| Opened | 0 | 0 | 0 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 2 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 1 | 0 |
| Outlets at end | 9 | 8 | 11 |
| Net change | 0 | -1 | +3 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 11 SBA-backed loans to WaterWalk Extended Stay by Wyndham franchisees since 2018. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
4 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$2,581,500
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
2 vs 7
distinct banks — pulling back
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO WATERWALK EXTENDED STAY BY WYNDHAM BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $75K franchise fee (Item 5) and a total investment of $1.2M–$26.9M (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$1.2M–$26.9M
all-in investment range
Franchise fee (Item 5)
$75K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for WaterWalk Extended Stay by Wyndham with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for WaterWalk Extended Stay by Wyndham. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing WaterWalk Extended Stay by Wyndham's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →WaterWalk Extended Stay by Wyndham franchise questions, answered from the filings
What percentage of WaterWalk Extended Stay by Wyndham franchises closed last year?
In WaterWalk Extended Stay by Wyndham's latest FDD Item 20 (fiscal 2023), 2 of 4 franchised outlets left the system — an annualized exit rate of 50.0%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a WaterWalk Extended Stay by Wyndham franchise cost?
Per WaterWalk Extended Stay by Wyndham's 2024 FDD, buying in requires an initial franchise fee of $75K (Item 5) and a total initial investment of $1.2M–$26.9M (Item 7).
What royalty does WaterWalk Extended Stay by Wyndham charge?
WaterWalk Extended Stay by Wyndham charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2024 FDD.
Does WaterWalk Extended Stay by Wyndham disclose earnings (Item 19)?
No — WaterWalk Extended Stay by Wyndham's 2024 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.