Everhome Suites Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Everhome Suites is an extended-stay hotel franchise offering apartment-style suites for longer stays. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue.
FranchiseVerdict summary · 2026
A Everhome Suites franchise requires a total initial investment of $12.7M – $16.2M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $12.7M – $16.2M
- 49th pct Lodging
- Avg gross sales
- N/A
- 1 outlet
- Royalty
- 6.0%
- 52nd pct Lodging
- Units
- 1
- 8th 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 $12.7M – $16.2M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAudited consolidated financials are those of parent Choice Hotels International, Inc. (FY ended Dec 31, 2023), in thousands. Total revenues include Royalty/licensing/management fees, initial franchise fees, platform/procurement fees, owned hotels, other, and $784,160K other revenues from franchised and managed properties.
- RISKVerdict C (Average), verdict score 46/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 47% above the typical lodging franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $50K | $50K | |
| Architectural Plans & Inspections | $60K | $150K | |
| Legal Fees | $10K | $40K | |
| Environmental Impact Study (if necessary) | $0 | $16K | |
| Market Study | $3K | $15K | |
| Construction (excluding soft costs) | $10.9M | $13.3M | |
| Insurance | $45K | $165K | |
| Pre-opening Advertising | $5K | $60K | |
| Furniture, Fixtures & Equipment | $956K | $1.2M | |
| Hardware to operate the choiceADVANTAGE property management system | $4K | $11K | |
| choiceADVANTAGE Software License and Systems Training Fees | $9K | $11K | |
| Opening Inventory of Supplies | $213K | $330K | |
| Orientation and Hospitality Training Fees | $2K | $3K | |
| High Speed Internet Access | $14K | $25K | |
| Mandatory On-Premise Signs | $20K | $80K | |
| Construction Advisory Services Agreement | $0 | $20K | |
| Design and engineering costs and inspections | $100K | $180K | |
| Pre-Opening Photography | $1K | $3K | |
| Working Capital Required Before Operations Begin | $200K | $420K | |
| Additional Funds for 3-Month Initial Period | $50K | $75K | |
| Total initial investment | $12.7M | $16.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $12.7M – $16.2M
- Middle of category vs category
- Liquid capital req'd
- $200K – $420K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $472 |
| Training fee | $1K |
| Transfer fee | $50K |
| Inventory (initial) | $213K – $330K |
| Total fee load | 8.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Everhome Suites 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 Everhome Suites unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
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: 2024 FDD
Financial Performance
Audited consolidated financials are those of parent Choice Hotels International, Inc. (FY ended Dec 31, 2023), in thousands. Total revenues include Royalty/licensing/management fees, initial franchise fees, platform/procurement fees, owned hotels, other, and $784,160K other revenues from franchised and managed properties.
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 8.5% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +100.0% over 3 years (1 opened, 0 closed).
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 Everhome Suites Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 13
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
Everhome Suites presents extreme risk: single-unit system under active litigation from parent company Choice Hotels, zero financial transparency, massive capital requirement, and no evidence of franchisee profitability in a crowded extended-stay segment.
Litigation (Item 3)
Three pending matters: (1) Norma Knuth Canadian class action re destination marketing fees ($403M demand); (2) Jai Sai Baba multi-franchisee federal suit alleging discrimination/antitrust/RICO (stayed, sub-arbitration with DIP Hospitality pending award); (3) T&T Management breach of license/trade secrets claim. Section II discloses approximately 50+ royalty recovery and IP enforcement actions filed in 2023. Resolved cases include Wydredge (settled 2014), Sender Kohl ($85K settlement 2021), Highmark ($779K judgment against Choice 2024), and Dahya (net judgment in Choice's favor 2024).
Largest disclosed settlement: $779,398
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 46 / 100 verdict
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates either pre-revenue concept or system collapse; no franchisee success data available
- 02HIGHActive litigation from franchisor (Choice Hotels) pursuing 85+ royalty recovery actions suggests systemic franchisee default/failure and aggressive collection tactics
- 03MINORThree pending class action suits regarding destination marketing fees and anti-competitive practices indicate potential hidden costs and legal exposure for new franchisees
- 04MEDNo Item 19 financial performance disclosure combined with going concern=False signals either undisclosed losses or franchisor unwillingness to document unit profitability
- 05MINORZero territory protection in extended-stay/hotel market creates cannibalization risk and price competition from future franchisees
- 06MINOR20-year term locks franchisees into relationship with litigious franchisor under unfavorable unit economics
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · 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 | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 3 |
View Item 3 litigation summary
Three pending matters: (1) Norma Knuth Canadian class action re destination marketing fees ($403M demand); (2) Jai Sai Baba multi-franchisee federal suit alleging discrimination/antitrust/RICO (stayed, sub-arbitration with DIP Hospitality pending award); (3) T&T Management breach of license/trade secrets claim. Section II discloses approximately 50+ royalty recovery and IP enforcement actions filed in 2023. Resolved cases include Wydredge (settled 2014), Sender Kohl ($85K settlement 2021), Highmark ($779K judgment against Choice 2024), and Dahya (net judgment in Choice's favor 2024).
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 80 hrs
- Training location
- North Bethesda, Maryland or Scottsdale, Arizona (owner orientation); online or North Bethesda, MD for GM certification
- Ongoing training
- Required
- Site selection
- Franchisor must approve site; franchisee selects and submits within 9 months of signing
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Everhome Suites franchise?
The total investment to open a Everhome Suites franchise ranges from $12.7M – $16.2M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Everhome Suites franchise owners earn?
Everhome Suites 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 Everhome Suites 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 Everhome Suites FDD and qualifies whose outlets they describe.
What is Everhome Suites's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Everhome Suites (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 Everhome Suites franchise locations are there?
As of their most recent FDD filing, Everhome Suites has 1 total units in the United States, including 1 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Everhome Suites a good franchise to buy?
FranchiseVerdict rates Everhome Suites as a C-grade franchise with a verdict score of 46 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
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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.