Affordable Suites of America Franchise Cost, Revenue & Review 2026
- Investment
- $193K – $1.8M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Affordable Suites of America is a limited-service, extended-stay hotel franchise offering value-priced suites with kitchenettes. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue.
FranchiseVerdict summary · 2026
A Affordable Suites of America franchise requires a total initial investment of $193K – $1.8M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $193K – $1.8M
- 8th pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 30
- 32nd pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $193K – $1.8M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (3 opened, 1 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LG AS Franchisor LLC
- Parent company
- LGAS Brand Parent LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- Affordable Suites of America, Inc.
- Prior franchisor entity
- CEO title
- President and CEO
- Gary DeLapp
- Incorporated in
- Delaware
- HQ
- 10801 Monroe Road, Suite 200, Matthews, North Carolina 28105
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $3.9M
- vs $2.7M prior year
Same owner · FDD Item 1, page 9
1 other brand on this site name LGAS Brand Parent LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Gary DeLapp
- Headquarters
- North Carolina
- Founded
- 2018
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 89% below the typical lodging franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $75K | $100K |
| Equipment, build-out, other | $83K | $1.6M |
| Total initial investment | $193K | $1.8M |
Source: Affordable Suites of America 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $193K – $1.8M
- Top 40% of category vs category
- Liquid capital req'd
- $75K – $100K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $350 |
| Training fee | $3K |
| Transfer fee | $10K |
| Renewal fee | $35K |
| Total fee load | 6.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Affordable Suites of America is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Affordable Suites of America unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Includes company-owned outlets
An occupancy metric, not unit revenue
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 21
- vs category median 98 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Lodging median of 8.5%.
Disclosure
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Affordable Suites of America Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 30
- Opened
- 3
- Last reporting year
- Closed
- 1
- Turnover rate
- 3.3%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 56%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
21 current owners across 4 states.
- NC 13
- VA 6
- GA 1
- IN 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Affordable Suites presents elevated risk due to undisclosed financial performance, small system size, high capital requirements, and a royalty floor that may exceed profits during downturns.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Item 3: No litigation is required to be disclosed.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Adam Binder (Director/VP of Franchise Operations) filed a personal Chapter 7 bankruptcy petition on August 3, 2017 (In re: Binder, No. 17-31301, W.D.N.C. Charlotte Division), discharged November 13, 2017, prior to employment with ASA.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
Score breakdown · what drove the 51 / 100 verdict
- 01MEDSmall system of only 30 units with 20% YoY growth suggests limited scale, weak brand recognition, and higher operational risk
- 02MINORHigh capital requirement ($5M-$10M) combined with unknown profitability creates severe downside exposure
- 03MINORDual royalty structure (greater of $2,500/month floor + 5% of GRR) provides minimal relief during low-occupancy periods
- 04MINORExtended 20-year term locks franchisee into agreement despite unknown unit economics and small system size
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | Yes |
| Arbitration location | Matthews, North Carolina |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
Item 3: No litigation is required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 19 hrs
- Training location
- Matthews, North Carolina (or franchisee's Hotel or another designated location)
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Jonas Chorum PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Jonas Chorum PMS
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Affordable Suites of America franchise?
The total investment to open a Affordable Suites of America franchise ranges from $193K – $1.8M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Affordable Suites of America franchise owners earn?
Item 19 of the Affordable Suites of America FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Affordable Suites of America?
Affordable Suites of America is franchised by LG AS Franchisor LLC. Its parent company is LGAS Brand Parent LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Affordable Suites of America FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Affordable Suites of America FDD and qualifies whose outlets they describe.
What is Affordable Suites of America's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Affordable Suites of America (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Affordable Suites of America franchise locations are there?
As of their most recent FDD filing, Affordable Suites of America has 30 total units in the United States, including 18 franchised units and 12 company-owned units. 3 new units were opened in the latest reporting year.
Is Affordable Suites of America a good franchise to buy?
FranchiseVerdict rates Affordable Suites of America as a B-grade franchise with a verdict score of 51 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.