How Much Does the Trademark Hotel Collection Franchise Cost?

TMH Worldwide, LLC discloses two separate capital ranges for a typical 100-room U.S. Trademark Collection facility. A new construction project requires an estimated initial investment of $12,629,725 to $19,245,487. A conversion requires $230,212 to $5,213,389, but that lower range assumes the franchisee already owns the hotel facility. Neither range includes the cost of purchasing or leasing real estate. The FDD cover states that $42,500 to $71,800 of the disclosed investment is payable to the franchisor or its affiliates.

Capital snapshot

Sources: 2026 FDD cover; Item 5, pp. 25–28; Item 6, pp. 28–40; Item 7, pp. 40–47.

The two ranges describe different asset positions. The new construction table includes a full Facility Construction range of $10,346,410 to $15,611,500, plus Architecture, Design and Engineering, construction contingency, Furniture, Fixtures and Equipment, Opening Inventory, Pre-Opening Wages and other startup costs. The conversion table assumes an existing hotel and lets several categories start at or near zero when the property already satisfies System Standards.

The disclosed endpoints are not two packages that a buyer can select. Each endpoint rests on a set of assumptions about what the property already has, what must be replaced, and how much work local conditions require. A project can land between the endpoints because some systems pass inspection while others do not, or because a usable component still needs partial modification. The document does not publish a single midpoint or an amount described as normal. Using an average would therefore erase the relationship between the physical asset and the work required to satisfy the system's standards.

For an existing hotel, the most useful early exercise is a room-by-room and system-by-system condition review tied to the franchisor's written scope. That review should separate items that can remain in service, items that can be repaired, items that must be replaced, and work that depends on later design approval. The same approach applies to public areas, exterior elements, life-safety systems, mechanical equipment, communications infrastructure and guest-facing technology. This creates a traceable explanation for why a project is near one end of the disclosure rather than relying on a broad assumption that an operating hotel is automatically ready to change brands.

For a ground-up project, the official range begins after a major asset decision has already been made: the site itself. The omission of acquisition or lease cost means two projects with identical plans can require materially different capital before the first construction invoice is paid. Site access, utilities, soil conditions, local review, parking requirements and code compliance can also change the work that sits around the building contract. Some of those matters are partly represented in professional and permit categories, while others are expressly left for local verification. The disclosed total is therefore a structured starting point for the development budget, not a replacement for site-specific due diligence.

The format comparison also affects timing. A ground-up hotel typically concentrates spending over design, permitting and building phases, with large third-party invoices arriving before operations begin. An existing property may have a shorter physical path, but the work can become urgent once the approved improvement scope and opening deadline are fixed. That distinction matters because available capital must cover both the amount and the sequence of payments. A lower total does not necessarily mean a lighter near-term cash burden when renovation, equipment replacement and supplier deposits overlap.

Item 7 includes the Initial Fee, required and conditional pre-opening services, premises work, technology, Furniture, Fixtures and Equipment, Opening Inventory, insurance, launch costs and three months of Additional Funds. The following tables preserve each format separately while showing where a category is absent, excluded or capable of starting at zero.

Agreement, training and professional costs

Premises, systems and opening assets

Protection, launch and initial operating period

These tables should be read as a cost map rather than as a shopping list. Some rows are payments to the brand organization or an affiliate, while many of the largest rows are paid to contractors, professionals, government agencies, insurers and outside suppliers. The identity of the payee affects deposits, cancellation terms, refund rights and the documentation needed by a lender. The disclosure notes that amounts paid to the franchisor are generally non-refundable, and third-party amounts depend on the contract negotiated with the outside provider. A complete capital plan should therefore attach each estimate to a proposed vendor, payment schedule and refund provision.

Several rows also interact. Design work can determine the extent of structural or finish work. That work can change the quantity of furnishings and operating supplies required. Technology choices can affect equipment, interface and installation needs. A change in room count can affect supplies, signage, training, systems and recurring charges. Reading each row in isolation can understate the practical effect of one scope decision moving several parts of the budget at once. The official totals preserve the franchisor's overall range, but the buyer's supporting schedule should record these dependencies so that a change order in one area is not treated as an isolated event.

The zero-dollar starting points in the existing-property table are assumptions, not waivers. They indicate that no expenditure may be necessary in a category when the asset already complies. They do not state that the franchisor will accept existing conditions without review. Written inspection results, approved plans and the final improvement schedule should control the project estimate. Where the low end is zero, the buyer should document the evidence supporting that conclusion and retain a reserve until approval is complete. This is especially important for concealed building conditions and systems whose adequacy cannot be confirmed through a visual tour.

Exclusions deserve their own worksheet. Taxes, freight, installation, local permitting, certain engineering work and specific insurance policies may sit outside a stated line even though they are necessary to complete the project. Those amounts should not be inserted into the official figures or described as franchisor estimates. They should be tracked separately as project-specific obligations, with the source and date of each quote noted. Keeping the two layers separate allows a reader to reconcile the disclosure with the actual financing request without changing the meaning of the official range.

The initial operating allowance also needs a separate cash-flow schedule. It covers a limited period and includes some expenses that begin after opening, but it omits two obligations that can be significant for a hotel: occupancy cost and loan payments. It also does not promise that operations will stabilize within the covered period. A buyer can preserve the official line as disclosed, then build a separate schedule for obligations outside that line and for any longer period required by the project's financing documents. That approach avoids both double counting and the opposite error of assuming the disclosed allowance settles every post-opening need.

Even after removing Facility Construction and Facility Improvements, several categories can exceed $100,000 at the high end. Architecture and related professional costs, Furniture, Fixtures and Equipment, Opening Inventory, Additional Funds and signage are the largest shared secondary exposures in the 2026 tables.

The chart isolates ceilings because that comparison answers a narrow question: which supporting categories can remain material even when the building work is set aside. It does not show how often a ceiling is reached, and it does not imply that every category reaches its maximum in the same project. The official total should remain the controlling disclosure. A buyer can use the chart to decide where detailed quotations and condition evidence are most important, not to construct a synthetic high case by adding every displayed bar.

Procurement can create a second layer of exposure around the goods themselves. The disclosure states that a procurement service provider may charge a percentage of the furnishings purchased, and it separately excludes tax, freight and installation from the relevant estimate. A quote that shows only the unit price of furniture or equipment is therefore incomplete for capital planning. The delivered-and-installed amount, deposit schedule, storage, warehousing, damage responsibility, replacement lead time and responsibility for brand approval should be recorded before the order is treated as funded.

The same discipline applies to professional services. A broad architectural allowance may not include every local study or engineering task. A property with little visible renovation can still require documentation, testing or permit work before it is approved. Conversely, a detailed preliminary review may identify reusable elements and reduce later uncertainty. The decision value comes from converting each broad category into a scope, accountable party and due date while preserving the disclosure's boundaries. This is particularly important when the project is being financed, because a lender may fund only documented eligible costs and may require equity to be contributed before later draws.

High-end exposure can also arrive through schedule pressure. Delayed approvals, supplier lead times or late discovery of non-compliant work can compress multiple payments into the same period. The disclosure provides an official amount range but does not model the buyer's draw process, retainage, interest during construction or lender reserves. Those matters belong in the project financing schedule. They should be presented as separate contractual requirements rather than added to the franchisor's published estimate without explanation.

The money is not paid at one moment. The Application Fee starts the sequence, the Affiliation Fee balance follows at signing, most premises and opening-asset costs are incurred before opening, and several training, photography and operating amounts continue after the facility begins operating.

1. Submit the Membership Application. Pay the non-refundable $2,500 Application Fee. If TMH Worldwide, LLC approves the application, that amount is credited toward the Affiliation Fee.
2. Sign the Membership Agreement. Pay the Initial Fee balance. For a 100-room hotel, the greater-of formula produces a $35,000 Initial Fee, leaving $32,500 after the application credit unless payment is deferred under an Affiliation Fee Note.
3. Fund the site, renovation or construction phase. Architecture, engineering, permits, deposits, Facility Construction or Facility Improvements, contingency, Furniture, Fixtures and Equipment, signage, Opening Inventory, insurance and startup professional costs are generally paid as incurred before opening.
4. Complete technology and opening requirements. The SynXis or OPERA Set-Up and Implementation Fee is due at least 30 days before opening. New construction facilities also face mandatory On-Site Opening Training, with certain conversion facilities included when required.
5. Begin recurring and initial-period spending. Recurring Fees start on the Opening Date. For an acquired facility, they start when the buyer acquires or takes possession, whichever occurs first. Photos, some training charges and the three-month Additional Funds amount are incurred after opening.

The payment sequence should be converted into a calendar before the agreement is signed. That calendar should show the triggering event, expected invoice date, payee, required approval, deposit, balance date and whether the amount is refundable. It should also distinguish payments controlled by the brand organization from those controlled by construction contracts, suppliers, utilities or public authorities. This prevents a general statement such as “before opening” from masking several different deadlines that may occur months apart or in a concentrated closing period.

Funding sources should be matched to those deadlines. Equity, construction draws, bridge funding and operating cash may be available at different stages and may carry different conditions. A lender may require evidence of completed work before releasing funds, while a supplier may require a deposit before manufacturing begins. The disclosure does not resolve that mismatch. The buyer's schedule should therefore identify which payments must be made before reimbursement is available and how much unrestricted cash must remain available throughout the development or renovation period.

Payments described as occurring after opening still belong in the opening plan. Training, photography and recurring charges can begin while payroll, supplies and guest-service obligations are also being funded. For an acquisition, the start of recurring charges may be tied to possession rather than the date of a later rebranding event, so the closing documents and operating transition need to use the same date assumptions. A project budget that ends on opening day can miss this overlap even when it reproduces every pre-opening row correctly.

Deadline extensions should not be treated as a routine budget option. The disclosed charge is conditional, and receiving an extension remains subject to approval. A schedule reserve may protect against ordinary delays, but it does not create a right to postpone an opening requirement. Construction contracts, permit schedules, technology installation and training arrangements should be coordinated to the contractual date, with any requested change documented before relying on revised timing.

The core recurring charge is not a single royalty. The 2026 FDD requires a 5.5% Membership Fee and a 2.0% Marketing Fee, both based on Gross Room Revenues and generally paid monthly. Reservation, loyalty, distribution, technology, training and compliance charges can apply in addition to those two percentages.

Other transaction-based charges include Member Benefits Commissions of up to 10% of GRR plus a 1.5% Commission Service Charge, the Everyone Sells Group Referrals Program charge of 10% of commissionable revenue, a $200 Global Translation Fee per additional language, and a Best Rate Guarantee Processing Fee of $195 per instance. Optional service choices can add Standard RMS at 0.75% of GRR with a $645 monthly minimum and $1,395 maximum, Premium RMS at 1.0% of GRR with stated monthly limits, Premium Plus RMS at $5,425 per month, and Remote Sales Service at $1,500 per month. FDD Item 6, pp. 31–35.

The continuing cost structure is best understood by basis rather than by one combined percentage. Some charges apply to all room revenue under the defined calculation. Others apply only when a particular reservation source, loyalty transaction, service or event occurs. Still others are fixed periodic charges tied to technology, education or attendance. Because the denominators differ, adding the percentages together would create a misleading composite rate. The correct analysis is to identify the activity that triggers each charge and confirm that the accounting system can classify the underlying transaction consistently with the contract.

Channel-related charges can stack on the same reservation when more than one disclosed service is involved. The document expressly notes that the digital commission is in addition to other applicable charges associated with the reservation. A buyer should map each booking path from customer contact through reservation, distribution, loyalty and payment processing, then identify every applicable contractual charge. That map should be tested against sample invoices and the proposed property-management configuration. The purpose is not to forecast annual revenue or earnings; it is to understand which obligations attach to which transaction and how they will be reported.

Technology costs also have two layers. The opening estimate covers acquisition or installation needed to begin operations, while monthly support, room-based charges and optional service levels continue afterward. Future upgrades may require new or amended schedules and can introduce different services or amounts. The buyer should keep the signed technology schedules with the main agreement, record the chosen service level, list every required interface and identify which functions are included in the monthly charge. This avoids treating a setup payment as the complete life-cycle cost of the system.

Optional services should be evaluated separately from mandatory participation. A service may be optional at signing but become the only permitted level after a disclosed operational condition is met, or the franchisor may reserve the ability to mandate a program later. The analysis should therefore record current status, the contractual right to change that status, the notice process and the financial basis that would apply after a change. This is more precise than labeling the entire category either required or discretionary without qualification.

Event-triggered charges are not part of an ordinary monthly run rate, yet they can be material to ownership changes, missed standards, disputes or termination. They should be placed in a separate obligations register rather than ignored because the event is uncertain. That register can identify the trigger, cure opportunity, calculation method, due date and any state-law qualification. The result is a clearer distinction between routine operating payments and contingent liabilities created by the agreement.

Which events create additional charges?

• Transfer or renewal: the current Reaffiliation or Relicense Fee is the greater of $35,000 or $350 per room, generally with a $2,500 Application Fee. There is no contractual renewal right; if both parties elect renewal, the then-current agreement and Reaffiliation Fee apply.
• Administrative assignment: $5,000 including the Application Fee; assignment to a financial institution or receiver is $7,500 including the Application Fee.
• Opening deadline extension: $10,000 when assessed for new construction or conversion, due within 10 days of the Opening Date.
• Design and improvement events: Custom Interior Design Review currently $6,000; post-opening Property Improvement Plan preparation $1,500 per request; room additions currently $350 per added room.
• Training and operational support: General Manager Certification $2,250, additional attendee $1,400, On-Site Opening Training $750–$3,750 by room count, Remedial Training up to $1,250, Product Quality Training $1,500–$5,000, and optional On-Site Operational Support $1,200 per eight-hour day for up to three days. Travel and lodging may be extra.
• Technology and maintenance: Mobile Operations Program $0.60 per room monthly, Emergency Safety Device $35 monthly for MOP users, premium RevIQ $28 monthly, and Preventative Maintenance up to $1,500 annually when the disclosed quality triggers apply.
• Inspection or system restoration: Reinspection $3,000–$5,500 plus inspector travel, lodging and meals; Central Reservation System reconnection currently $4,000.
• Payment or reporting default: interest at the lesser of 1.5% monthly or the legal maximum, $100 returned-check fee, $160 paper-check processing fee, and audit costs when an understatement reaches the disclosed threshold.
• Early termination or transfer with a Development Incentive: repayment of the unamortized balance plus a 10% Development Incentive Acceleration Fee may apply.
• Specified termination: Liquidated Damages use the greater of $3,000 per authorized guest room or a formula based on average monthly Membership and Marketing Fees and the remaining term, subject to the agreement and state law.

Sources: 2026 FDD, Item 5, pp. 25–28; Item 6, pp. 28–40; Item 10, pp. 53–56; Item 17, pp. 74–79.

No fixed dollar minimum for Liquid Capital or Net Worth is disclosed in Items 5, 6 or 7 of the March 31, 2026 FDD. The Membership Agreement instead requires adequate financial liquidity and resources to perform the agreement, and significant owners generally must personally guarantee the member's obligations. In specified community-property or other states, spouses may also have to sign a note or guaranty.

What financing does Item 10 describe?

Item 10 says the franchisor does not generally offer financing except for specific arrangements. It may defer some or all of the Affiliation Fee in its discretion, usually for about 90 days or until opening. It may also offer a Development Incentive loan for new construction or conversion. That incentive is typically funded shortly after opening and is progressively forgiven over the Membership Agreement term, but the remaining balance becomes repayable after an early transfer or termination.

The Women Own the Room Development Incentive has a stated target of $2,500 per guest room, capped at 50% of the member's equity investment, for an approved majority women-owned member. Qualification and the amount remain discretionary. Wyndham's official Women Own the Room information describes the program's capital-support focus, while the enforceable cost terms are those in the current FDD and signed documents.

The Black Owners & Lodging Developers program offers tailored support that may include a Development Incentive, but the 2026 FDD does not state a fixed BOLD dollar amount. The official BOLD program page describes enhanced capital support, lender introductions and supplier discounts for qualified applicants. Neither program guarantees approval, loan funding or a reduction in every cost category.

A deferral or incentive does not replace project equity. The first arrangement postpones a specific payment and leaves the obligation outstanding. The second is generally disbursed only after opening and after specified conditions have been satisfied. Neither supplies the deposits and pre-opening cash needed to reach that point unless another source covers them. A buyer should therefore place the expected receipt date beside each use of funds and avoid counting proceeds before the contractual conditions for disbursement can be met.

The forgiveness feature should be read together with the repayment triggers. The balance declines over the agreement term only while the membership remains in place. A sale, transfer or early termination can reverse the economic effect by making the unamortized amount due, potentially with an additional charge and default interest. Any acquisition or exit model should request the current payoff calculation and confirm whether a proposed buyer may assume the obligation. The disclosure allows assumption only with consent and permits additional security requirements.

Personal guarantees affect the capital decision even though they are not a line in the opening table. The obligation can extend beyond the operating entity to significant owners, and certain spouses may also be required to sign. A lender may require separate guarantees or collateral. The combined exposure should be reviewed across all documents so that the ownership group understands which obligations are limited to project assets and which can reach other resources. This is a legal and financing question, not a substitute for a disclosed cash threshold.

Program descriptions on public pages should be treated as current background, while the signed note and agreement control the amount, conditions, forgiveness schedule and remedies. An applicant should obtain the actual proposed documents before counting any support in the sources-and-uses statement. Where no fixed amount is stated, the correct entry is unresolved or contingent, not an assumed credit based on another project or a marketing description.

The Item 7 totals are broad, but they do not settle the buyer's full capital requirement. Real estate, financing structure, property condition and several local or supplier charges remain project-specific. The official range should therefore be reconciled to the actual site, Property Improvement Plan, construction documents, supplier quotations, insurance program and loan terms.

A practical reconciliation begins with the official table and adds separate schedules without altering the published figures. One schedule can list excluded development and occupancy obligations. Another can document vendor quotations and taxes. A third can show financing fees, interest reserves and lender conditions. A fourth can extend post-opening liquidity beyond the disclosed period when necessary. Each schedule should identify its evidence source and should be labeled as project-specific rather than attributed to the franchisor.

Quotation dates matter because construction, equipment, insurance and freight prices can change before orders are placed. The buyer should record expiration dates, escalation clauses, substitution rights and lead times, then refresh material quotes before financing closes. When a range depends on the condition of existing assets, the inspection date and scope should also be recorded. This creates a defensible bridge from a disclosure issued on one date to a project budget assembled later.

Scope boundaries should be tested for gaps and overlaps. For example, a supplier may exclude installation that a contractor assumes is included, or an equipment quote may omit electrical work required for operation. A design allowance may not cover permit revisions, and an insurance quote may omit a required policy. The reconciliation should assign every obligation to one accountable line and mark unresolved interfaces for follow-up. This reduces the risk of double counting while making omissions visible.

• Real estate: verify land acquisition, building purchase price, lease or ground-lease obligations and deposits. These are excluded from the Item 7 totals.
• Local development charges: confirm impact fees, site evaluation, geotechnical work, civil engineering, signage permits, taxes and code-driven costs that the FDD excludes or cannot quantify.
• Property Improvement Plan: for a conversion, obtain the final scope and separate required work from optional upgrades. The PIP determines whether several categories remain near zero or move toward their disclosed ceilings.
• FF&E and OS&E quotations: confirm taxes, freight, installation and procurement fees. The FDD estimates procurement-service-provider fees at 11%–17% of Furniture, Fixtures and Equipment purchased when applicable.
• Technology configuration: document the chosen PMS level, mandatory and optional OPERA interfaces, hardware, PBX, television and internet upgrades, and monthly support fees.
• Insurance: obtain quotes for all required policies, including workers' compensation, employer's liability and business interruption coverage that are not included in the disclosed insurance range.
• Opening cash: extend the three-month Additional Funds analysis when the project's rent, debt service, payroll or operating ramp requires more capital. Item 7 expressly excludes rent and debt service from that line.
• Current documents: confirm that no FDD amendment, state addendum, negotiated fee schedule, PMS Schedule, Development Incentive Note or Membership Agreement term changes the payment amount or timing before signing.

Before relying on the final capital requirement, the buyer should be able to trace every major use of funds to one of three places: the current disclosure, a signed project contract or a documented project-specific estimate. Any unexplained balancing amount should remain visible rather than being hidden inside a general contingency. The same file should show who pays, who receives the payment, when it becomes due and which event can change it. This makes later updates auditable when design, financing or opening assumptions change.

The Federal Trade Commission's franchise buying guide explains why Items 5–7 should be reviewed together and why costs outside those Items still require investigation. For Trademark Collection, the decisive distinction is this: $12.63 million–$19.25 million is the 2026 new-construction range before land, while $230,212–$5.21 million is the conversion range for an already-owned facility. The Initial Fee is only one part of either amount, and ongoing percentages, reservation charges, technology fees and lifecycle events continue after opening.