Affordable Suites of AmericaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Affordable Suites of America franchise requires a total initial investment of $5.1M – $10.2M, including a $35K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $5.1M – $10.2M
- 33rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- N/A
- Units
- 30
- 25th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 20% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $5.1M – $10.2M including a $35K franchise fee.
- Item 19 discloses "Average Occupancy, ADR, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 48/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LG AS Franchisor LLC
- Parent company
- LGAS Brand Parent LLC
- Incorporated in
- DE
- HQ
- 10801 Monroe Road, Suite 200, Matthews, NC 28105
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $2.7M
- vs $3.9M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate limited-service, budget hotel properties targeting price-conscious leisure and business travelers. Day-to-day operations include front desk management, housekeeping coordination, guest services, maintenance, and revenue management across typically 50-150 room properties.
- CEO
- Gary DeLapp
- Headquarters
- NC
- Founded
- 2018
- FDD year
- 2025
- States available
- 5
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 | $4.9M | $10.0M |
| Total initial investment | $5.1M | $10.2M |
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
- $5.1M – $10.2M
- Better than avg vs category
- Liquid capital req'd
- $75K – $100K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg 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 |
| Transfer fee | $10K |
| Renewal fee | $35K |
| Total fee load | 6.0% of rev |
Financial Performance
This brand's FDD disclosed "Average Occupancy, ADR, and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Affordable Suites of America Compares
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
- 60%
- vs corporate-owned
- Net growth (yr3)
- +20.0%
- Net unit change last year
- 3-yr CAGR
- +28.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 48 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate if $5M-$10M investment generates acceptable ROI
- 02MEDSmall system of only 30 units with 20% YoY growth suggests limited scale, weak brand recognition, and higher operational risk
- 03MINORHigh capital requirement ($5M-$10M) combined with unknown profitability creates severe downside exposure
- 04MINORDual royalty structure (greater of $2,500/month floor + 5% of GRR) provides minimal relief during low-occupancy periods
- 05MINORExtended 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Radius |
| Protected territory | Yes |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 23 hrs
- On-the-job training
- 19 hrs
- POS system
- Jonas Chorum PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Jonas Chorum PMS
Item 20 · call current owners
Franchisee Contacts
37 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 $5.1M – $10.2M, 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 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 14 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 A-grade franchise with a risk score of 48 out of 100, 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?
If you represent Affordable Suites of America, you can request corrections or provide updated information.
Claim this brandOther Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.