Extended Stay America Suites is a hotel franchise targeting the extended stay market with significant capital requirements ($9.2M-$14.1M for new construction). The system has been declining significantly, dropping from 643 total units in 2022 to 446 in 2024, primarily due to company-owned units being converted to other brands. The franchise offers a 20-year initial term with no renewal rights, which is unusual in franchising. Territory protection is provided but the franchisor reserves significant rights. The model appears designed for passive investors given the hotel management structure and high capital requirements.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
Similar to Extended Stay America Suites in category and investment range