What Are Operating Procedures of WoodSpring Suites Franchise
Thinking about investing in an extended-stay hotel franchise like WoodSpring Suites? Discover how this model offers a unique approach to hospitality, focusing on value and extended stays. Learn about the investment, operational structure, and potential returns with our detailed WoodSpring Suites Franchise Business Plan Template.
| # | Operating Procedure | Description |
|---|---|---|
| 1 | Territory Evaluation and Awarding | Territories are determined through detailed market research by Choice Hotels, often defined by zip codes or MSAs. Awards are typically granted on a first-come basis to qualified applicants with an approved site that meets brand visibility and accessibility standards. |
| 2 | Site Feasibility and Location Analysis | A thorough site feasibility study is mandatory, including an analysis of zoning laws and development costs, which can vary significantly by municipality. A competitive analysis focusing on other extended-stay properties within a 5-mile radius is crucial, with a target of existing segment occupancy rates above 70%. |
| 3 | Initial Training Program | The comprehensive training program, including approximately 40 hours of online coursework and 5 days of in-person training, covers the brand's PMS, sales, marketing, and operational best practices. Training for up to three individuals is included in the franchise fee, excluding travel and lodging. |
| 4 | Ongoing Support and Development | Franchisees receive continuous support from a dedicated Franchise Services Director, who conducts regular site visits to aid in operational efficiency. Ongoing training modules and webinars focus on new technologies, marketing trends, and guest service enhancements, with a strong emphasis on digital marketing and the Choice Privileges loyalty program. |
| 5 | Procurement and Cost Management | Franchisees benefit from the large-scale procurement program, ChoiceBuys.com, which offers negotiated discounts on essential items like FF&E and operating supplies. This program can potentially lead to significant savings, estimated at 10-15% on these costs compared to independent purchasing. |
Key Takeaways
- The WoodSpring Suites business model is a lean, extended-stay hotel franchise focused on essential amenities for long-term guests, minimizing operational costs and staffing needs. This model targets guests such as construction crews, traveling professionals, and those relocating who require affordable, clean, and safe accommodations for extended periods.
- The franchise operates with a simplified model, featuring limited public spaces and no food and beverage outlets, which significantly reduces daily maintenance and overhead costs. This efficiency contributes to an average operating margin of over 50%, substantially higher than the traditional hotel industry average.
- The primary revenue stream is guest room rentals, with a strong emphasis on weekly and monthly rates to ensure consistent occupancy and predictable cash flow. Ancillary revenue from on-site laundry facilities and vending machines contributes an additional 3-5% of total revenue.
- The total estimated initial investment for a new 123-room WoodSpring Suites hotel ranges from $13,445,950 to $16,792,500, as of 2025. This includes significant costs for land acquisition, construction, furniture, fixtures, equipment, and initial operating capital.
- Ongoing franchise fees include a monthly royalty fee of 5% of gross room revenue and a combined marketing, reservation, and technology fee of 2.5% of gross room revenue.
- The potential return on investment (ROI) for a WoodSpring Suites franchise is considered strong, with an average Gross Operating Profit (GOP) margin of 53.6% reported for franchised hotels in 2023. Investors can project a capitalization rate (cap rate) of 8-10% upon stabilization.
- Franchise applicants must meet minimum net worth requirements of $500,000 to $1,000,000 and have between $6,803,600 and $8,739,000 in liquid capital. A comprehensive business plan with detailed financial projections and market analysis is crucial for securing financing.
What Is The WoodSpring Suites Business Model?
The WoodSpring Suites franchise operates on a distinct franchise business model centered around the extended stay hotel sector. This model is intentionally lean, focusing on providing essential, no-frills amenities for guests staying a week or longer. This strategic simplicity is designed to keep operational costs and staffing needs low, making it an attractive hotel franchise opportunity.
The target demographic for this model includes individuals such as traveling professionals, construction crews, and those in the process of relocating. They seek accommodations that are affordable, clean, and safe for extended periods. This approach has proven highly effective; as of early 2025, the model yields average operating margins exceeding 50%, a significant figure when compared to the traditional hotel industry’s average of 30-35%.
Efficiency is a hallmark of this franchise business model. A typical 123-room property requires a lean staff of only 4-5 full-time employees. This low staffing requirement is a key differentiator in the extended stay market. Furthermore, the franchise’s design minimizes extensive public spaces and entirely omits food and beverage outlets. This deliberate reduction in amenities drastically lowers daily maintenance and overhead costs, setting it apart from many other hotel franchise opportunities.
How does the franchise operate?
The operational framework of the WoodSpring Suites franchise is built on efficiency and a focused guest experience. By concentrating on the core needs of extended-stay guests, the brand streamlines operations, which directly translates into cost savings and enhanced profitability for franchisees.
The model’s success is evident in its staffing levels. A property with approximately 123 rooms typically operates with a team of just 4 to 5 full-time employees. This lean staffing is a critical component of the WoodSpring Suites franchise opportunity, contributing to its competitive edge. The franchise’s design, featuring limited communal areas and no food service, further simplifies daily management and reduces the associated overhead, making it a compelling choice among extended stay hotel franchise options.
For those interested in understanding the practical steps involved, there's a detailed guide on How to Start a WoodSpring Suites Franchise in 7 Steps: Checklist.
What are the key revenue streams?
The primary engine of revenue for a WoodSpring Suites franchise is derived from guest room rentals. The model emphasizes weekly and monthly rates, which are structured to foster consistent occupancy and create predictable cash flow for the franchisee. This focus on stable bookings is central to the WoodSpring Suites franchise opportunity.
Performance data from 2024 indicates strong occupancy rates, averaging around 79%. Coupled with an Average Daily Rate (ADR) of approximately $58, the Revenue Per Available Room (RevPAR) consistently outpaces the economy extended-stay segment average by over 20%. This financial performance underscores the viability of the WoodSpring Suites franchising model.
Beyond room rentals, ancillary revenue streams contribute an estimated 3-5% to total revenue in 2025. These secondary income sources are generated from on-site guest-paid amenities, such as laundry facilities and vending machines. These additions provide a high-margin income stream with minimal additional operational effort.
Key Financial Benchmarks for WoodSpring Suites Franchisees
- Initial Investment Range: $6,803,600 to $8,739,000
- Required Cash: $6,803,600 - $8,739,000
- Net Worth Requirement: $500,000 - $1,000,000
- Average Annual Revenue per Unit: $1,537,302
- Royalty Fee: 6% of gross revenue
- Marketing Fee: 2.50% of gross revenue
- Breakeven and Investment Payback: Typically within 36 Months
What Is The Total Initial Investment?
Understanding the total initial investment is a crucial step when considering any hotel franchise opportunities, and the WoodSpring Suites franchise is no different. For those looking to open a new build, 123-room WoodSpring Suites hotel, the estimated initial investment can range from $13,445,950 to $16,792,500 as of 2025. This comprehensive figure encompasses everything from securing the land to covering initial operating expenses.
What is the WoodSpring Suites franchise cost breakdown?
Delving into the specifics of the WoodSpring Suites franchise cost breakdown reveals where the majority of capital is allocated. A significant portion, estimated between $9,500,000 and $12,000,000, is dedicated to building and site construction for a standard 123-room hotel. Beyond construction, other major upfront costs include the initial franchise fee, which is $50,000, and the investment in furniture, fixtures, and equipment (FF&E), projected to be between $1,200,000 and $1,500,000 for 2025. Prospective franchisees should also factor in the variable cost of land acquisition, which can range from $1,200,000 to $2,000,000 depending on the market. Additionally, it's wise to allocate an extra $100,000 to $200,000 for working capital to cover the first three months of operation.
The low end of the initial investment, based on FDD data, sits at $6,803,600, with the high end reaching $8,739,000. This range also necessitates a minimum of $6,803,600 to $8,739,000 in cash required and a net worth requirement of $500,000 to $1,000,000.
What are the ongoing franchise fees?
Beyond the initial outlay, understanding the ongoing WoodSpring Suites franchise fees is vital for long-term financial planning. These recurring costs, detailed in the Franchise Disclosure Document (FDD), primarily consist of a monthly royalty fee and a marketing and reservation system fee. Both are calculated as a percentage of the hotel's gross room revenue.
The royalty fee is set at 6% of gross room revenue. This payment secures the franchisee's right to utilize the WoodSpring Suites brand, its established operating systems, and gain access to the extensive support infrastructure provided by its parent company, Choice Hotels. In addition to the royalty, there's a combined marketing, reservation, and technology fee of 2.50% of gross room revenue. This fee is instrumental in funding national advertising efforts, supporting the popular Choice Privileges loyalty program, and maintaining the central reservation system (CRS) that drives a significant portion of bookings.
Key Considerations for Ongoing Fees
- Royalty Fee: 6% of gross room revenue, covering brand usage and system support.
- Marketing & Technology Fee: 2.50% of gross room revenue, supporting advertising, loyalty programs, and the central reservation system.
- These fees are critical for maintaining brand consistency and driving customer acquisition, contributing to the overall success of the WoodSpring Suites franchise.
For those exploring how to buy a WoodSpring Suites franchise, understanding these financial commitments, both upfront and ongoing, is essential for a realistic assessment of the WoodSpring Suites franchise opportunity. It’s also beneficial to review the potential revenue streams to gauge the ROI for WoodSpring Suites franchise, with average annual revenue per unit reported at $1,537,302.
What Is The Potential Return On Investment?
When considering a WoodSpring Suites franchise opportunity, understanding the potential return on investment (ROI) is paramount. This extended stay hotel franchise model is designed for profitability, leveraging strong operating margins and a consistent demand for its services. While specific ROI figures can't be guaranteed, the data available provides a clear picture of the financial potential.
The 2024 Franchise Disclosure Document (FDD) for WoodSpring Suites highlights an average Gross Operating Profit (GOP) margin of 53.6% across 289 franchised hotels that operated for the entirety of 2023. This impressive margin is a key indicator of the brand's ability to generate substantial profits.
For investors looking at the 2025 market, a projected capitalization rate (cap rate) of 8-10% upon stabilization is achievable, typically within 24 to 36 months of opening. This is a competitive figure within the hotel real estate sector. The brand's consistent performance is further evidenced by its RevPAR (Revenue Per Available Room) index, which consistently stays above 140 when compared to direct competitors. This indicates strong market positioning and pricing power.
Furthermore, the development model for WoodSpring Suites franchising is geared towards a 2x multiple on invested capital over a 10-year holding period. This benchmark is a crucial consideration for seasoned investors evaluating hotel franchise opportunities, offering a clear target for capital appreciation.
How does brand growth impact value?
The expansion of the WoodSpring Suites franchise network directly contributes to the increasing property value for franchisees. As brand recognition grows and the network effect strengthens, each unit benefits from a more robust market presence.
As of Q1 2025, the brand boasts a pipeline of over 300 hotels, a clear signal of its ongoing expansion and penetration into new markets. This significant growth trajectory is a positive indicator for existing and potential franchisees.
This expansion also amplifies the benefits derived from the Choice Hotels central reservation system and its extensive Choice Privileges loyalty program, which boasts over 65 million members. In 2024, these integrated channels were responsible for more than 60% of system-wide bookings. This reliance on internal channels helps reduce dependence on third-party online travel agencies (OTAs), thereby lowering customer acquisition costs and improving profitability.
As more WoodSpring Suites franchise territories become developed, the overall brand equity naturally increases. This enhanced brand value can translate into higher property valuations and a stronger resale market for franchisees looking to exit their investment or expand their portfolio. For those interested in the specifics of acquiring a franchise, understanding the initial steps is key. You can find more details on How to Start a WoodSpring Suites Franchise in 7 Steps: Checklist.
Tips for Evaluating Franchise ROI
- Analyze the FDD Carefully: Pay close attention to Item 19 for Gross Operating Profit (GOP) margins and other financial performance data.
- Understand Stabilization Period: Factor in the typical 24-36 months needed for a hotel to reach stabilized operating performance and achieve target cap rates.
- Compare Against Industry Benchmarks: Evaluate the projected cap rates and RevPAR index against other hotel franchise opportunities in the extended-stay segment.
- Consider Long-Term Growth: Assess the franchise's growth potential and its impact on future property valuations and resale value.
Operating Procedure to Secure WoodSpring Suites Franchise Financing
What are the WoodSpring Suites franchise investment requirements?
Securing financing for a WoodSpring Suites franchise opportunity involves meeting specific financial benchmarks. The primary WoodSpring Suites franchise investment requirements mandate a minimum net worth of $2,000,000 and a minimum of $1,000,000 in liquid capital per project. These figures are crucial as they demonstrate your capacity to handle the multi-million dollar development costs associated with establishing a new hotel. Lenders in 2025 are typically looking at a loan-to-cost (LTC) ratio of 60-70% for new hotel construction. This means you'll need to inject equity representing roughly 30-40% of the total project cost, which can range from $4,000,000 to $6,500,000. Choice Hotels has established relationships with preferred lenders who understand the WoodSpring Suites franchise business model. These partners often offer more favorable terms, with interest rates in 2025 projected to be 250-350 basis points over the SOFR (Secured Overnight Financing Rate).
How do you prepare a business plan?
A robust business plan is a cornerstone for both your WoodSpring Suites franchise application and securing financing. It requires meticulous detail, including comprehensive 10-year pro-forma financial projections. These should encompass forecasted Profit and Loss statements, cash flow statements, and a balance sheet. Your plan must also feature a thorough market analysis for your chosen location. This means identifying key demand drivers such as nearby hospitals, corporate parks, and significant infrastructure projects. Utilizing data from industry sources like STR (Smith Travel Research) is vital for benchmarking your projected occupancy rates and Average Daily Rate (ADR) against the local competitive landscape. Furthermore, the plan should highlight your management team's experience, particularly in real estate development or hospitality management, and clearly outline an operational strategy that aligns with the efficient WoodSpring Suites model.
To effectively navigate the path to ownership and understand the potential returns, it's beneficial to explore What are the Pros and Cons of Owning a WoodSpring Suites Franchise? This will provide a balanced perspective on the opportunities and challenges involved in this extended stay hotel franchise.
| Minimum Net Worth | $2,000,000 |
| Minimum Liquid Capital | $1,000,000 |
| Estimated Equity Injection (30-40%) | $4,000,000 - $6,500,000 |
Tips for Financing Your WoodSpring Suites Franchise
- Build a strong credit history: Lenders will scrutinize your personal and business credit.
- Develop detailed financial projections: Accurate and realistic forecasts are key to lender confidence.
- Leverage preferred lender relationships: Utilize the network provided by Choice Hotels for potentially better terms.
- Clearly articulate your management experience: Highlight relevant hospitality or real estate development background.
- Understand the loan-to-cost ratio: Be prepared to contribute a significant equity stake.
Financing the WoodSpring Suites Franchise Opportunity
When considering the WoodSpring Suites franchise opportunity, understanding the financing landscape is paramount. The total initial investment for a WoodSpring Suites franchise can range from $6,803,600 to $8,739,000. This significant capital requirement underscores the importance of a well-structured financing plan. The initial franchise fee is $50,000, with ongoing royalty fees at 6% of gross revenue and a marketing fee of 2.50%. With an average annual revenue per unit reported at $1,537,302, lenders will assess your ability to service debt against these revenue streams. The projected breakeven time of 36 months and an investment payback period of also 36 months are critical metrics for financial institutions when evaluating loan applications for this hotel franchise opportunity.
| Initial Investment Range | $6,803,600 - $8,739,000 |
| Royalty Fee | 6% |
| Marketing Fee | 2.50% |
| Average Annual Revenue Per Unit | $1,537,302 |
Operating Procedure To Complete The WoodSpring Suites Franchise Application Process
How do you submit the initial application?
Embarking on the journey to acquire a WoodSpring Suites franchise begins with a foundational step: submitting an initial inquiry form. This is typically done through the Choice Hotels development website. The form is designed to gather essential information about your financial capacity to invest, your prior experience in development, and the specific geographic regions you're targeting for expansion.
Following this initial submission, a franchise development director will reach out to you. This personal contact usually happens within 2-3 business days, as of 2025, and involves a preliminary qualification call. The primary objective of this call is to assess how well your profile aligns with the brand's strategic growth objectives for the WoodSpring Suites franchise opportunity.
Should you meet the initial qualifications, you'll then be invited to complete a more comprehensive, formal application. This stage requires you to provide detailed financial statements, an overview of your business entity, and authorization for a background check. Historically, the processing time for this formal application phase averages between 2-4 weeks.
What happens after application submission?
Once your formal application is submitted, the Choice Hotels team initiates a thorough due diligence process. This involves meticulous financial verification and a detailed review of your real estate holdings and operational experience. This in-depth assessment typically takes approximately 30-45 days to complete.
Candidates who successfully navigate the due diligence phase are then invited to a 'Discovery Day' at the Choice Hotels headquarters. This event is a crucial opportunity to engage directly with the executive team, gain deeper insights into the WoodSpring Suites franchise training program, and discuss available territories for your potential hotel franchise opportunities.
The culmination of the process involves a final review and approval by the franchise committee. Upon receiving their approval, you will be presented with the Franchise Disclosure Document (FDD) for your detailed review. Subsequently, you will receive the WoodSpring Suites franchise agreement details, which will then be prepared for execution, marking a significant step towards opening an extended stay hotel franchise.
Key Considerations During the Application Process
- Financial Readiness: Ensure your financial documentation is up-to-date and readily available. The required cash investment ranges from $6,803,600 to $8,739,000, with a required net worth between $500,000 and $1,000,000.
- Experience Assessment: Be prepared to articulate your experience in real estate development and hotel operations. This is a critical factor in the franchisor's evaluation of your suitability for the WoodSpring Suites franchising model.
- Due Diligence: Take your time to thoroughly review all provided documents, including the Franchise Disclosure Document (FDD), which outlines key financial performance representations, fees, and obligations.
| Stage | Typical Timeline | Key Activities |
|---|---|---|
| Initial Inquiry | 2-3 Business Days (Post-Submission) | Online form submission, preliminary qualification call |
| Formal Application | 2-4 Weeks (Processing) | Detailed financial statements, business entity overview, background check authorization |
| Due Diligence | 30-45 Days | Financial verification, review of real estate and operational experience |
| Discovery Day & Final Approval | Variable | Meeting executive team, FDD review, franchise committee approval |
Understanding the franchise business model for WoodSpring Suites is essential. With an average annual revenue per unit of $1,537,302 and a median of $1,434,054, the WoodSpring Suites franchise opportunity presents a compelling case for investors. The initial franchise fee is $50,000, with ongoing royalty fees at 6% and a marketing fee of 2.50%. For those considering alternatives, it's beneficial to understand What Are Some Alternatives to the WoodSpring Suites Franchise?
Operating Procedure To Analyze The WoodSpring Suites Franchise Agreement
When considering a WoodSpring Suites franchise opportunity, a thorough review of the franchise agreement is paramount. This legally binding document outlines the rights and responsibilities of both the franchisee and the franchisor. Understanding its key terms is crucial for making an informed decision about this hotel franchise opportunity.
What are the key terms and duration?
The standard franchise agreement for WoodSpring Suites typically spans a term of 20 years. This extended duration is common in the new-build hotel sector, providing franchisees with a substantial runway to recoup their initial investment. For those who adhere to the brand's standards and fulfill contractual obligations, there is an option to renew the agreement for an additional 10-year term. This renewal is contingent upon meeting specific conditions, such as being in good standing with the franchisor and completing any required Property Improvement Plans (PIPs). As of 2025, a renewal fee of $2,000 is stipulated. Furthermore, the agreement designates a protected territory for each franchisee, usually defined by a radius of 2-3 miles, to prevent direct competition from other WoodSpring Suites locations within that zone.
What are the termination and transfer clauses?
The franchise agreement clearly defines the circumstances under which the franchisor can terminate the agreement. These include, but are not limited to, failure to remit fees, non-compliance with brand standards, or financial insolvency. Typically, franchisees are afforded a 30-day cure period to rectify most defaults. Should a franchisee decide to sell their business, the franchisor's consent is mandatory. The prospective buyer must meet all current WoodSpring Suites franchise investment requirements and demonstrate the necessary qualifications. A transfer fee is also applicable upon the sale, which, according to the 2025 Franchise Disclosure Document (FDD), is the greater of $10,000 or an amount calculated based on the number of rooms. This fee helps cover the franchisor's administrative costs associated with vetting and onboarding the new owner.
Key Considerations for Agreement Analysis
- Term Length: A 20-year term with a 10-year renewal option provides long-term stability, but understand the conditions for renewal.
- Territory Protection: Clarify the exact boundaries of your protected territory to ensure market exclusivity.
- Termination Clauses: Be aware of the default provisions and the cure periods provided.
- Transferability: Understand the process and fees associated with selling your franchise.
Understanding these clauses is vital for managing your WoodSpring Suites franchise business model effectively. For a detailed breakdown of the financial commitments involved in acquiring a WoodSpring Suites franchise, consult the How Much Does a WoodSpring Suites Franchise Cost? resource.
| Franchise Term | Renewal Option | Renewal Fee (2025) |
| 20 Years | 10 Years | $2,000 |
| Termination Cure Period | Transfer Fee (Minimum) | Initial Franchise Fee |
| 30 Days | $10,000 | $50,000 |
Operating Procedure To Evaluate WoodSpring Suites Franchise Territories Available
How are territories defined and awarded?
When considering a WoodSpring Suites franchise opportunity, understanding territory definition and awarding is crucial. Territories are meticulously defined by Choice Hotels' development team, utilizing extensive market research and data analysis. These boundaries are typically established using zip codes, Metropolitan Statistical Areas (MSAs), or a specific radius around a proposed hotel site. The awarding process operates on a first-come, first-served basis for qualified applicants who have an approved site. A detailed site package submission is required, and approval hinges on the location meeting the brand's stringent criteria for visibility, accessibility, and proximity to key demand generators.
The brand's strategic growth plan for 2025 highlights a significant focus on expanding into secondary and tertiary markets that exhibit robust blue-collar employment bases, alongside select urban locations. A substantial 75% of new development is strategically targeted for these high-potential growth areas, indicating a clear direction for franchise expansion.
How do you research a potential location?
For those looking to open an extended stay hotel franchise like WoodSpring Suites, a comprehensive site feasibility study is non-negotiable. This involves a deep dive into local zoning laws, navigating the entitlement processes, and accurately estimating site development costs, which can fluctuate by as much as 30% depending on the specific municipality.
A thorough competitive analysis is equally vital. This means identifying all existing and planned hotels within a 5-mile radius, with a particular emphasis on other extended-stay properties. A key indicator of a viable market is an existing extended-stay segment occupancy rate exceeding 70%. Additionally, leveraging demographic data is essential to confirm the presence of a target customer base. Look for markets with a high concentration of industries such as construction, healthcare, logistics, and consulting, as these sectors typically drive longer-term stays. A common benchmark for a suitable location is a population of at least 50,000 within a 5-mile radius.
| Initial Investment Range | $6,803,600 - $8,739,000 |
| Franchise Fee (Initial) | $50,000 |
| Royalty Fee | 6% of revenue |
| Marketing Fee | 2.50% of revenue |
| Cash Required | $6,803,600 - $8,739,000 |
| Net Worth Required | $500,000 - $1,000,000 |
| Average Annual Revenue per Unit | $1,537,302 |
| Median Annual Revenue per Unit | $1,434,054 |
| Lowest Annual Revenue per Unit | $704,190 |
| Highest Annual Revenue per Unit | $2,537,972 |
| Breakeven Time | 36 Months |
| Investment Payback | 36 Months |
Tips for Territory Evaluation
- Focus on Demand Drivers: Prioritize locations with a consistent influx of travelers requiring extended stays, such as large construction projects or corporate expansions.
- Analyze Competitive Landscape: A saturated market might seem daunting, but a strong competitive analysis can reveal opportunities if you can differentiate your offering.
- Understand Local Dynamics: Zoning, local regulations, and community development plans can significantly impact a site's feasibility and long-term success.
Exploring the WoodSpring Suites franchise opportunity involves a structured approach to territory evaluation. For those interested in the specifics of initiating this venture, understanding the foundational steps is key. Learn more about How to Start a WoodSpring Suites Franchise in 7 Steps: Checklist.
Operating Procedure to Assess The WoodSpring Suites Franchise Training Program
What does initial training cover?
When considering a WoodSpring Suites franchise opportunity, understanding the initial training is crucial. The program is designed to be comprehensive, covering approximately 40 hours of online coursework followed by 5 days of intensive, hands-on training. This dual approach ensures a solid foundation for both theoretical knowledge and practical application. Key areas include mastering the brand's proprietary property management system (PMS), understanding effective sales and marketing strategies, and implementing operational best practices tailored for a lean staffing model. A significant emphasis is placed on revenue management techniques, aimed at optimizing Average Daily Rate (ADR) and occupancy rates. For instance, effective revenue management can directly impact the 2.89% cost of goods sold and contribute to the 51.77% gross profit margin observed in average P&L statements.
Training is conducted at a designated certified training hotel and at the Choice Hotels corporate headquarters. Importantly, the cost for up to three individuals to attend this initial training is included in the initial franchise fee, which is $50,000. However, franchisees will need to budget separately for travel and lodging expenses associated with this training period.
What ongoing support is provided?
Beyond the initial training, a WoodSpring Suites franchise offers continuous support through a dedicated Franchise Services Director (FSD). This FSD acts as a primary business consultant, conducting regular site visits, typically 2 to 4 times per year. These visits are instrumental in assisting franchisees with operational efficiency and profitability. For example, in 2020, there were 270 franchised units, indicating a robust network benefiting from this ongoing support structure.
Choice Hotels also provides ongoing training modules and webinars covering a range of topics, from new technologies to evolving marketing trends and guest service enhancements. A notable focus for 2025 is on digital marketing and leveraging the Choice Privileges loyalty program. This program is a significant contributor to revenue, with over 10% of its revenue generated from repeat business, a key metric for extended stay hotel franchises.
Franchisees also benefit from the considerable scale of Choice Hotels' procurement program, ChoiceBuys.com. This program offers negotiated discounts on essential items such as furniture, fixtures, and equipment (FF&E), operating supplies, and various services. These group purchasing power can lead to substantial savings, potentially reducing costs by 10-15% for owners compared to procuring these items independently. This efficiency directly supports the goal of achieving the average annual revenue per unit of approximately $1,537,302.
For those interested in learning more about the process, understanding How to Start a WoodSpring Suites Franchise in 7 Steps: Checklist can provide a clear roadmap.
| Initial Investment Range | $6,803,600 - $8,739,000 |
| Franchise Fee | $50,000 |
| Royalty Fee | 6% |
| Marketing Fee | 2.50% |
| Average Annual Revenue per Unit | $1,537,302 |
| Median Annual Revenue per Unit | $1,434,054 |
| EBITDA | $307,796 (20.03% of Revenue) |
Key Takeaways for Franchisee Training Evaluation
- Prioritize understanding the curriculum's focus on revenue management to maximize ADR and occupancy.
- Factor in travel and lodging costs for initial training, as these are not covered by the franchise fee.
- Leverage the ongoing support from Franchise Services Directors for continuous operational improvement.
- Utilize the Choice Privileges loyalty program and digital marketing training to enhance guest retention and revenue.
- Take advantage of the ChoiceBuys.com procurement program for significant cost savings on FF&E and supplies.