Affordable Suites of America Franchise Cost, Revenue & Review 2026
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. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $193K – $1.8M
- 8th pct Lodging
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- N/A
- Units
- 30
- 32nd pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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.
- 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).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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
- 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
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 90% 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
- Greater of $2,500 per month or 5% of Gross Room Revenues
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| 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
Affordable Suites of America did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Affordable Suites of America unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
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
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 21
- vs category median 99 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 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 average of 10.4%.
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 averages
How Affordable Suites of America Compares
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
3-year detail · Item 20
- Transfers (3yr)
- 1
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.
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.
Litigation (Item 3)
Item 3: No litigation is required to be disclosed.
Bankruptcy (Item 4)
Disclosed in last 7 years
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 |
| 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
FDD download
Affordable Suites of America · FDD (2025) PDF
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?
Affordable Suites of America does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.