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Dolce International Holdings

Dolce International Holdings, Inc.
https://development.wyndhamhotels.com
1-800-758-8999
22 Sylvan Way, Parsippany, New Jersey 07054

Initial Investment Range

$462,649 to $50,788,009

Franchise Fee

$113,150 to $131,550

The franchisee will use the Dolce system to establish and operate an upper upscale full-service Dolce guest lodging facility.

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Dolce International Holdings March 31, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: July 16, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
1
6

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The FDD does not provide financial statements for the franchisor, Dolce International Holdings, Inc. (Dolce Intl.), but for its ultimate parent, Wyndham Hotels & Resorts, Inc. (WHR), which guarantees performance. While WHR is a large, profitable company, its 2024 net income declined from prior years and it carries over $2.4 billion in debt. Your direct agreement is with a subsidiary, creating a dependency on the parent's continued stability and support for this specific brand.

Potential Mitigations

  • Your accountant should analyze the parent company's consolidated financial statements, paying close attention to debt levels, cash flow, and profitability trends.
  • It is wise to have your attorney review the parent's Guaranty of Performance to understand its scope and enforceability.
  • Discussing the parent company's specific commitment to the Dolce brand with your financial advisor is a prudent step.
Citations: Item 1, Item 21, Exhibit D

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals an extremely high turnover rate. The system started 2024 with only three franchised hotels and one ceased operations during the year, representing a 33% churn rate. Such a high rate of units leaving a very small system is a significant red flag that may indicate potential issues with the business model, profitability, or franchisee satisfaction. This level of instability poses a substantial risk to your investment.

Potential Mitigations

  • You must contact the franchisee who left the system in 2024 to understand their reasons for leaving; your attorney can help frame questions.
  • Engaging a business advisor to discuss the viability of a franchise system with such a small and unstable unit count is critical.
  • Your accountant should use this turnover data to create highly conservative financial projections.
Citations: Item 20, Exhibit E-2

Rapid System Growth

Low Risk

Explanation

This risk was not identified. The FDD shows in Item 20 that the franchise system is extremely small and has not experienced rapid growth. While this avoids risks associated with outpacing support infrastructure, the lack of growth presents its own set of challenges regarding brand recognition and system viability.

Potential Mitigations

  • A business advisor can help you evaluate the pros and cons of joining a very small or non-growing franchise system.
  • Discussing the franchisor's growth plans and strategies with them directly is an important step.
  • Your attorney can review the franchisor's obligations to support the brand, regardless of system size.
Citations: Not applicable

New/Unproven Franchise System

High Risk

Explanation

Dolce Intl. is at a very early stage of development, having only started offering franchises in November 2022. The FDD explicitly highlights "Short Operating History" as a special risk. With only two U.S. franchised outlets at the end of 2024, the system is unproven, which could mean underdeveloped support, minimal brand recognition, and a higher overall investment risk compared to a mature, established franchise system.

Potential Mitigations

  • It is crucial to conduct extensive due diligence on the management's specific experience in franchising with your business advisor.
  • You must speak with the two current franchisees listed in Exhibit E-1 to understand their experience with the new system.
  • An accountant should help you model the increased financial risks associated with an unproven brand.
Citations: Item 1, Item 20, Special Risks to Consider About This Franchise

Possible Fad Business

Low Risk

Explanation

This risk was not identified. The franchise is for an upper-upscale hotel, which is a segment of the well-established hospitality industry. The business model is not based on a new or fleeting trend, reducing the risk that consumer interest will rapidly decline.

Potential Mitigations

  • A business advisor can help you analyze the long-term trends and competitive landscape within the upscale hotel market.
  • Reviewing the franchisor's plans for brand development and adaptation with your business advisor can provide insight into their long-term vision.
  • Your accountant can help assess the business model's resilience to economic cycles.
Citations: Not applicable

Inexperienced Management

Low Risk

Explanation

This risk was not identified. Although the franchisor entity is new, Item 2 shows its management team is composed of senior executives from its parent, Wyndham Hotels & Resorts, Inc. This leadership team has extensive and long-standing experience in the hospitality and franchising industries, which should provide a strong operational and strategic foundation for the brand.

Potential Mitigations

  • Verifying the specific roles and accomplishments of the key executives listed in Item 2 is a worthwhile step for your business advisor.
  • When speaking with current franchisees, inquire about their direct experiences with the management team's support and strategic direction.
  • Your attorney can help you understand the relationship and allocation of responsibilities between the franchisor entity and the parent company management.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk is not present. The ultimate parent company, Wyndham Hotels & Resorts, Inc., is a publicly traded corporation, not a private equity firm. This ownership structure may imply a focus on long-term brand health and shareholder value rather than the potentially shorter investment horizons often associated with private equity ownership.

Potential Mitigations

  • Reviewing the public filings of Wyndham Hotels & Resorts, Inc. with your financial advisor is recommended to understand its strategic priorities.
  • Discussing the ownership structure's impact on franchisees with your business advisor can provide valuable context.
  • Your attorney should review any clauses related to the sale or assignment of the franchise system.
Citations: Item 1

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. Item 1 clearly discloses the full ownership structure, identifying Wyndham Hotel Group, LLC and the ultimate parent, Wyndham Hotels & Resorts, Inc. (WHR). Furthermore, the FDD includes WHR's audited financial statements and a performance guaranty in Exhibit D, providing the necessary financial transparency for the entity backing the franchise.

Potential Mitigations

  • Having your attorney review the parent company's guaranty is crucial to understand its terms and protections.
  • Your accountant should analyze the parent company's financial statements provided in Exhibit D.
  • Discuss the corporate structure and the relationship between the entities with your business advisor.
Citations: Item 1, Item 21, Exhibit D

Predecessor History Issues

Low Risk

Explanation

This risk was not identified. Item 1 does not disclose any predecessors from which Dolce Intl. acquired the franchise system. The history provided suggests the brand was acquired by the Wyndham system and is now being offered as a new franchise, so there is no hidden history of prior system failures to assess.

Potential Mitigations

  • Confirming the brand's history prior to its acquisition by Wyndham can be a useful due diligence step for your business advisor.
  • Your attorney should verify the corporate history outlined in Item 1.
  • When speaking with industry experts, you might gain more context about the brand's pre-franchise history.
Citations: Item 1

Pattern of Litigation

High Risk

Explanation

Item 3 reveals that the franchisor's parent companies are defendants in several significant lawsuits, including multiple class actions. These suits allege serious antitrust violations related to systematic price-fixing through the use of revenue management software. A legal challenge to core pricing tools used across the system could create significant operational uncertainty and potential future liabilities or required changes for all franchisees. This pattern of litigation represents a considerable risk.

Potential Mitigations

  • Your attorney must analyze the allegations in the disclosed litigation and explain the potential impact on your business if the plaintiffs prevail.
  • Discussing these legal risks with a business advisor is important to understand potential operational changes that may result.
  • You should monitor the progress of these lawsuits, as their outcome could materially affect the franchise.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
4
0
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
4
4
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
8
1
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
1
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
4
2
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
4
4
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
7
3
8

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
0
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.