How much does a WoodSpring Suites franchise cost?
The 2026 WoodSpring Suites Franchise Disclosure Document estimates $8,835,420 to $14,566,908 to construct and begin operating one approximately 122-room WoodSpring Suites hotel. The range is for the disclosed new-construction prototype, includes six months of Additional Funds, and excludes real estate, real estate taxes, financing charges, interest, and debt service. Permits, licenses, government fees, and several site-dependent soft costs are listed as variable rather than fixed amounts.
Estimated Initial Investment for the approximately 122-room new-construction format in the 2026 FDD. The franchisor states that $67,500 to $164,750 of the investment is payable to Choice Hotels International, Inc. or its affiliates, but the high end of that cover-page figure does not transparently reconcile with the individually listed rows.
Data basis. Legal franchisor: Choice Hotels International, Inc. Applicable disclosed format: an approximately 122-room WoodSpring Suites new-construction property. Primary cost disclosures: Items 5, 6, and 7; cost-relevant provisions from Items 8, 10, 11, and 17. Information checked July 19, 2026. Choice maintains an official WoodSpring Suites development page and an official franchise-development contact page for requesting the current FDD. A matching public copy of the 2026 FDD was not located on a franchise-controlled website, so FDD Item and page citations in this article are intentionally unlinked.
Key cost figures
What is included in the $8.8 million to $14.6 million range?
The disclosed range is dominated by construction, followed by furnishings and equipment. It also includes design, signs, part of the insurance expense, pre-opening systems, training, marketing, and six months of working capital. Land and several unquantified site costs remain outside the published numbers.
The construction panel uses a $13 million scale. The other-category panel uses a separate $1 million scale so smaller ranges remain readable.
Interpretation: construction is the principal disclosed range driver. Site conditions, local labor and materials, utilities, topography, code requirements, project management, contractor profit, and other soft costs can move the actual capital requirement beyond the published range.
Source: 2026 FDD, Item 7, pp. 39-42. All plotted figures are official low/high ranges; the two chart panels use different labeled axes.Development and hard-asset costs
| Item 7 category | Low | High | Timing and payee |
|---|---|---|---|
| Real Estate | Not estimated | Not estimated | Purchased or leased under separately negotiated terms. |
| Permits, Licenses, and Government Fees | Varies | Varies | As incurred before opening; local jurisdiction and contractor. |
| Construction, excluding soft costs | $7,720,000 | $12,570,000 | As arranged before opening; contractors. |
| Furnishings and equipment | $714,920 | $822,158 | Before opening; vendors. Includes opening inventory and required systems. |
| Feasibility, Market, or Environmental Studies | $3,000 | $35,000 | As needed before opening; consultants. |
| Design services | $200,000 | $450,000 | Before opening; architect, interior designer, and engineering consultants. |
| Required exterior signs | $20,000 | $100,000 | Before opening under vendor terms; freight and installation included. |
| Insurance | $45,000 | $165,000 | Before opening; disclosed amount represents 25% of annual insurance cost. |
Pre-opening, franchisor, and working-capital costs
| Item 7 category | Low | High | What it covers |
|---|---|---|---|
| Initial brand fee | $50,000 | $50,000 | New hotel with 122 rooms or fewer; $300 per additional room above 122. |
| Pre-opening brand package | $11,550 | $30,000 | Pre-opening photography, choiceADVANTAGE hardware, software license, onboarding, and related items; shipping excluded. |
| Training and related travel | $3,450 | $10,250 | Owner Immersion and General Manager Operations Certification, with additional novice-operator training when required. |
| Pre-opening sales and marketing | $35,000 | $60,000 | Three months of pre-opening costs paid to vendors and employees. |
| Interior-design waiver | $0 | $20,000 | Conditional; due when requesting a waiver, whether or not approved. |
| Non-prototype design review | $0 | $20,000 | Conditional non-prototype design review; due at request. |
| Construction advisory visits | $0 | $20,000 | Required for a franchisee building its first WoodSpring Suites hotel; five site visits. |
| Revenue-management setup | $2,500 | $4,500 | ChoiceMAX or IDeaS G3 setup before opening. |
| Six-month operating reserve | $30,000 | $200,000 | Six months of employee wages, benefits, deposits, uniforms, recruitment, training, utilities, cleaning, paper, and other supplies. |
The official total should be preserved as disclosed, but it is not a complete all-in project ceiling. Land is excluded; permits and government charges are unquantified; construction omits site work, project management, contractor profit, and other soft costs; and the high-end franchisor-payable amount on the cover does not visibly reconcile with the listed rows. The $10,250 high end for training also does not equal the sum of the separately stated $1,950 owner program, $1,500 manager certification, and potential $7,500 novice-operator program. A buyer should obtain a written reconciliation for the proposed site, room count, and training assumptions.
Does the same cost range apply to every deal?
No. The published $8.84 million to $14.57 million range applies to the approximately 122-room new-construction prototype. The FDD also discusses conversions, transfers, re-licensing, hotels with more than 122 rooms, and a multi-property development path, but it does not publish a separate total for each route. The new-build range should not be applied to a conversion or acquisition without a project-specific cost schedule.
A Master Development Agreement has no separate agreement fee, but Choice requires a Rights Deposit based on the number of properties in the Development Schedule.
The full deposit is due when the development agreement is signed. It concentrates the initial brand-fee commitment at signing, while each hotel still has its own development budget.
Source: 2026 FDD, Item 5, p. 25 and Item 7, p. 40.- More than 122 rooms: add $300 to the initial brand fee for each additional room.
- Conversion: the FDD recognizes conversion projects and different training deadlines, but does not provide a separate opening-cost range.
- First hotel build: the construction-advisory package is mandatory at $20,000 for five site visits; additional visits are approximately $4,000 each.
- Transfer or re-licensing: the charge is the then-current initial brand fee or $60,000, whichever is greater, with other transaction costs possible.
- Non-prototype design: an Interior Design Waiver Fee and an Architectural Design Review and Construction Services Fee can each add $20,000.
- Construction deadline extension: an approved three-month extension costs $5,000; Choice may waive it but is not required to do so.
When is the money paid?
Cash is committed in stages rather than through one closing payment. The principal milestones are application, agreement execution, site and design work, construction start, pre-opening procurement, opening, and the first six months of operations.
Application: pay a nonrefundable $5,000 application fee. It is credited toward the $50,000 initial brand fee if the project proceeds.
Franchise or development commitment: fund the applicable initial brand fee. A multi-property agreement requires the entire Rights Deposit when signed.
Site, design, and approvals: pay feasibility studies, architects, engineers, permits, and conditional waiver-review fees as incurred. Real estate is acquired or leased separately.
Construction start: a first-time builder pays the $20,000 advisory-services charge in one lump sum when work begins.
Before opening: pay contractors, furnishings and equipment vendors, sign installers, insurers, the pre-opening systems package, required training, marketing, and revenue-management setup under the applicable terms.
After opening: begin the monthly percentage fees, technology charges, reservation-channel costs, and other operating payments. The six-month reserve is already included in the total range.
Which fees continue after the hotel opens?
The two core percentage fees are a 6.0% Royalty Fee and a 2.5% Marketing and Reservation Fee, both based on the preceding month's Gross Room Revenues (GRR) and paid monthly. They are not the only continuing charges: technology, education, association, convention, reservation-channel, commission, cybersecurity, and optional program fees can also apply.
- Gross Room Revenues
- Includes revenue from sleeping rooms, meeting rooms, and banquet rooms, along with specified no-show, early-departure, late-checkout, day-use, cancellation, attrition, and business-interruption proceeds. It excludes legally required taxes and specified ancillary revenue such as food and beverage, vending, telephone, and movie rentals.
- Royalty
- 6.0% of the preceding month's GRR, payable monthly.
- Marketing and reservations
- 2.5% of the preceding month's GRR, payable monthly. Item 6 permits increases for specified inflation, advertising, reservation-system, or system-cost changes applied broadly across the U.S. system.
- Six-month reserve
- $30,000 to $200,000. This amount is part of the opening estimate, not a recurring fee added on top of the official total.
Base Property Technology and Service Fee: $6.10 per room monthly, with a $400 minimum and $560 maximum.
Derived calculation: $6.10 × 122 rooms = $744.20, so the disclosed base monthly fee is limited to the $560 maximum for the 122-room prototype. Optional RESiN integrations add $0.35 per room per month.
Source: 2026 FDD, Item 6, p. 30. The $744.20 figure is arithmetic derived from the disclosed room count and per-room rate; $560 is the official cap.| Continuing or channel fee | Amount or basis | Timing / condition |
|---|---|---|
| Royalty | 6.0% of preceding month's GRR | Monthly; mandatory. |
| Marketing and reservations | 2.5% of preceding month's GRR | Monthly; mandatory. |
| Base technology service | $6.10 per room; $400 min / $560 max | Monthly; optional RESiN integration adds $0.35 per room. |
| CrowdStrike | $30-$95 | Monthly; required cybersecurity software and services. |
| Educational Resources Program | $1,500 plus tax annually | Billed in four equal quarterly amounts. |
| Franchisee Association | Currently $200 per property annually | All franchisees are members; assessments may change. |
| Annual Convention | $1,700 per attendee | Annual registration, plus travel and living expenses; $500 late fee. |
| AHLA Dues | $5.25 per room annually | Opt-out opportunity by January 15 eachyear. |
| Reservation and distribution channels | $3 per consumed OTA reservation; $7.70 per GDS reservation; 10%-15% travel-agent commission plus $0.48 processing; other program rates vary | Monthly, weekly, or as incurred depending on the channel. |
| Optional revenue management | ChoiceROCS $890-$1,400 monthly; ChoiceMAX $235-$360 monthly or IDeaS G3 $6 per key | Optional participation; setup or reinstatement up to $4,500 when applicable. |
Optional and circumstance-dependent operating programs
- Choice Digital Registration: optional tablets cost approximately $350 each, with quantity based on room count.
- ResConnect: $3 per transferred call, telephone-system upgrade costs, and an early-exit charge of $500 for each month remaining in the initial term; some nonparticipants can be auto-enrolled.
- Marketing Cooperative: voluntary contribution of $1-$2 per room per month, varying by region and hotel size.
- RevUp Powered by Koddi: voluntary monthly fee based on the hotel's selected investment level.
- AAA Official Appointment: $1,300-$2,600 annually for qualifying hotels, with an annual opt-out.
- Sales Certification Training: optional $1,000-$1,750 per attendee, plus applicable travel and living costs.
Which fees arise only after a transfer, default, upgrade, or special request?
Item 6 contains substantial charges that do not occur in ordinary monthly billing but can become material when ownership changes, brand standards are missed, insurance lapses, records are audited, reservation access is suspended, or the Franchise Agreement ends early.
| Trigger | Disclosed charge | When it applies |
|---|---|---|
| Transfer of 50% or more | Then-current Affiliation Fee or $60,000, whichever is greater | Due with transferee application; improvement-plan fee of $3,000 and re-licensing training of $995 may also apply. |
| Smaller ownership changes | $3,000 change-of-ownership fee; $7,500 assumption fee; close-family transfer $0-$7,500 | Based on transaction structure and Choice approval. |
| Room count increase over 5% | Then-current per-room charge, at least $1,000 | Before expanding sleeping-room count. |
| Property Improvement Review | $5,000 or then-current fee | When elected or required because of substantial wear and tear. |
| Insurance failure | $500-$100,000, possibly outside the range | If required coverage is not obtained or documented. |
| Audit deficiency | Estimated $7,000-$10,000 per audit | Payable if an audit finds a payment deficiency; deficient sums and interest can also be due. |
| Non-compliance | $35-$25,000 per instance | Quality, training, improvement-plan, contract, or operating-rule failures; specific monthly or quarterly penalties also exist. |
| Reservation-system reinstatement | $5,000 | Before reinstatement after suspension caused by default. |
| Comfort Letter | $2,500 plus $500 expedited fee | At request, with legal expenses billed separately. |
| Termination and continued trademark use | Contract formulas; $2,500 per day for post-termination intellectual-property use | Liquidated Damages may apply after breach-related termination, subject to state law. |
The transfer price is not limited to the transfer fee. A buyer or seller may also face an improvement plan, training, database cleanup, ownership-change, assumption, and room-count costs. The transfer provisions further require a transferee to meet then-current qualifications and bring the hotel to then-current brand image and standards.
- Late payment or reporting: unpaid bills carry 1.5% interest on the delinquent amount; a late revenue report triggers 1.5% of the prior month's royalty and marketing/reservation charges.
- Required technology upgrades: failure to install notified software or hardware updates within 30 days can cost $1,000 per month until corrected.
- Training compliance: missed owner immersion can cost $125 per month, and missed manager certification can cost $250 per month, until compliance or formal default.
- Other operational failures: the FDD lists $100 per qualifying guest complaint plus resolution cost and a $200 quarterly human-trafficking-training penalty.
Does the FDD disclose a liquid-capital or net-worth minimum?
The 2026 FDD does not state a fixed Liquid Capital, Net Worth, or Non-Borrowed Funds threshold in Items 5-7, and the official public development pages checked do not publish one. That absence does not mean the project can be financed with the published minimum alone. Choice applies credit review to certain financing and incentive programs, and lenders can require equity, collateral, liens, and Personal Guarantees.
Ask Choice for the current written financial-qualification criteria for the proposed ownership group, project structure, room count, land position, and development schedule. Keep Total Initial Investment, lender-required equity, Liquid Capital, Net Worth, and Personal Guarantee exposure as separate underwriting figures.
What financing and incentive arrangements are disclosed?
- Affiliation Fee Promissory Note: Choice may, in its sole discretion and after credit approval, finance the Affiliation Fee without interest. The entire amount is generally due within three months; unpaid principal after maturity bears an 18% default annual rate.
- Selected Capital Support: Choice may offer project-specific support for strategically important hotels. Funding generally occurs shortly after opening, and forgiveness depends on remaining free of specified defaults.
- Incentive Program: a qualifying WoodSpring Suites hotel can receive $2,500 per room, capped at $175,000, through a 10-year forgivable note. A five-year option pays 50% of that amount and is capped at $87,500. The FDD states that qualification is discretionary and the incentive cannot be combined with another incentive program.
- Re-Licensing Incentive: an eligible buyer of an existing Choice-branded hotel may receive a 50% discount on the then-current initial brand fee rather than the new-development incentive.
- Ascentium Capital LLC: the FDD discloses conventional or lease financing of $5,000-$500,000 for eligible costs, generally over 12-72 months, subject to underwriting, collateral, and possible Personal Guarantees. The lender maintains an official hospitality-financing information page.
- PMC Commercial Trust: the FDD discloses conventional and SBA financing generally equal to 70%-85% of collateral value, ranging from $500,000 to $5,000,000, with terms up to 25 years and required Personal Guarantees.
Financing approval is not guaranteed, and none of these arrangements converts the disclosed range into a required cash-down-payment figure. Choice's official SOAR program page describes current ownership-access support at a high level, while the binding amount and conditions for an applicant remain those in the applicable FDD and signed note documents.
Source: 2026 FDD, Item 10, pp. 47-51.What should a prospective franchisee verify before relying on the range?
The verified starting point is $8,835,420 to $14,566,908 for the approximately 122-room new-build prototype, not including real estate. The largest disclosed variable is construction, but the decisive project gap may be land, site work, contractor soft costs, permits, financing carry, or a format-specific obligation that the disclosure does not quantify.
Decision summary: WoodSpring Suites is a capital-intensive hotel development whose official 2026 new-build range already includes the $50,000 initial brand fee, pre-opening systems and training, and a six-month operating reserve. It does not resolve land cost or every site and financing obligation, and it should not be treated as a conversion, acquisition, or multi-unit budget without written project-specific disclosures.