15 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
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The total initial investment to open a Extended Stay America Suites franchise ranges from $9.2M to $14.1M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Extended Stay America Suites is $50K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Extended Stay America Suites 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a Extended Stay America Suites franchise requires a physical location (2025 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisExtended Stay America Suites charges a royalty fee of 5.5% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Extended Stay America Suites franchise is approximately 10.0% of gross sales (2025 FDD). This includes the royalty fee, a 4.5% marketing/advertising fund contribution, a $3.87/month technology fee, and other recurring charges.
View full fees analysisExtended Stay America Suites has been involved in 3 litigation cases over the past 3 years (2025 FDD). There are currently 3 pending cases. There is at least one class action lawsuit pending.
View full litigation analysisNo, the Extended Stay America Suites franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisExtended Stay America Suites offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisExtended Stay America Suites currently operates 446 locations (2025 FDD) (107 franchised, 339 company-owned). The system contracted by 18.6% over the past year. The 3-year compound annual growth rate is -11.5%.
View full growth analysisThe 1-year franchisee turnover rate for Extended Stay America Suites is 2.2% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisThe initial franchise agreement term for Extended Stay America Suites is 20 years (2025 FDD). Franchisees can renew 0 times for 0-year periods. The total potential term is 20 years.
View full contract analysisExtended Stay America Suites's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 0 miles of the former location (2025 FDD).
View full legal analysisYes, Extended Stay America Suites's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD). The agreement includes a jury trial waiver.
View full legal analysisExtended Stay America Suites provides 24 hours of initial training over approximately 1 weeks (2025 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, Extended Stay America Suites provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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