stayAPT Suites

The franchise has zero litigation cases over 3 years while the typical range for this category is 1.0-4.0 cases. What is the explanation for this unusually clean litigation history, and has the franchisor taken specific steps to avoid disputes?

Reported gross sales average $70,250, which is 62% below the typical range for hospitality franchises. Can you provide context on whether these are start-up units, underperforming locations, or if this metric includes only partial-year operations?

The system grew 88.2% in the past year (15 new units) with zero exits reported. How many of these 32 current units have been operating for at least 3 years, and what is the historical retention rate for units that have completed their initial term?

Why is the Investment Costs score 0/100, which is significantly below the typical range of 59-81? What specific investment cost factors are causing this outlier score?

The Support & Training score is 70, below the typical range of 73-86. What training programs and ongoing support are provided, and why does this category score below category averages?

Technology fees are $50/month, substantially lower than the typical range of $147.50-$734/month. What technology systems and services are included, and are there any additional technology costs not captured in this fee?

The franchise agreement specifies zero renewal options and a fixed 20-year term. What happens at the end of year 20—can franchisees negotiate renewal terms, or must they exit the system?

Transfer fees of $10,000 are at the lower end of the range. What restrictions apply to franchisee transfers, and under what circumstances can a transfer be denied by the franchisor?

The contract lists only 11 termination cause categories versus the typical 14.5-16.0 range. Which termination causes commonly seen in hospitality franchises are notably absent from your agreement?

The agreement specifies a 0-year non-compete period with no mileage restriction. Can a franchisee open a competing hotel immediately upon exit, and does this create any practical disadvantages for franchisees?

Territory is marked as protected but not exclusive. How does the franchisor define encroachment, and what remedy exists if the franchisor authorizes a competing unit within a franchisee's area?

What is the breakdown of the 15 units opened in the past year—how many are currently operational, how many are under construction, and what is the timeline for opening pending units?

Item 19 financial performance data is provided. How many franchisees are represented in the gross sales figures of $69,420-$70,250, and what is the age distribution of reporting units?

The agreement requires personal guarantees from all principal owners and spousal consent in community property states. How are these guarantees enforced, and what recourse does the franchisor have if a franchisee defaults?

Franchisees must purchase from franchisor-approved suppliers in 8 categories including FF&E and computer systems. What is the typical markup on these supplies, and can franchisees request exceptions or alternative suppliers?

The agreement requires mandatory binding arbitration with venue in the franchisor's home state. How often has this clause been invoked, and what has been the average cost and duration of arbitration disputes?

What causes were cited in the termination clause 30-day cure period for default? Can you provide examples of defaults that could not be cured within 30 days?

The franchise has zero reported litigation cases. Have there been any informal disputes, complaints, or settlement agreements that did not result in filed litigation, and if so, what were the common issues?

Given the rapid 88.2% growth in the past year, what is the franchisor's expansion strategy going forward, and are there any territorial saturation concerns in existing markets?

Of the 32 current units, how many are company-owned versus franchisee-owned, and does the franchisor have plans to open additional company-owned locations that might compete with franchisees?