FranchiseVerdict
Affordable Suites of America logo
FV-00080·STRONGExcellent81

Affordable Suites of America

Formerly known as American Swim Academy

Lodging - Hotels & MotelsFranchising since 2019Website
Investment
$5.1M – $10.2M
53rd pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
Units
30
46th pct Hotels & Mote…
SBA default

Bottom line

  • Total investment $5.1M – $10.2M including a $35K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated STRONG with a risk score of 54/100.
  • Auditor disclosed a going-concern note — 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
Delaware
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.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Affordable Suites of America unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $5.1M–$10.2M
Working capital
$
FDD reports $75K–$100K

Unlevered ROIC · per unit

1%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$98K
EBITDA margin
13.0%
Total invested
$7.7M
Payback
948 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2018
FDD year
2025
States available
5

Item 7 · what it costs

The Vitals

Total investment
$5.1M – $10.2M
All-in to open one unit
Liquid capital
$75K – $100K
Cash you must have on hand
Franchise fee
$35K
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

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

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
2023
18+3
Franchised units
2024
15
Franchised units
2025
14
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 18 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

54
Risk · 0-100
STRONG54 / 100

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.

Score breakdown · what drove the 54 / 100 rating

  1. 01MEDNo Item 19 financial performance data disclosed — impossible to validate if $5M-$10M investment generates acceptable ROI
  2. 02MEDSmall system of only 30 units with 20% YoY growth suggests limited scale, weak brand recognition, and higher operational risk
  3. 03MINORHigh capital requirement ($5M-$10M) combined with unknown profitability creates severe downside exposure
  4. 04MINORDual royalty structure (greater of $2,500/month floor + 5% of GRR) provides minimal relief during low-occupancy periods
  5. 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

Territory
Radius
Protected territory
Yes
Initial term
20 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
23 hrs
On-the-job training
19 hrs
POS system
Jonas Chorum PMS
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

37 numbers

Locked
(701) 328-••••
ND
(704) 794-••••
NC
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Affordable Suites of America · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above