Bottom line
- Total investment $12.7M – $16.2M including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated AVOID with a risk score of 85/100.
- 92 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
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 Everhome Suites unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Everhome Suites franchisees operate extended-stay hotel properties branded under the Everhome name, managing daily operations including housekeeping, front desk, maintenance, and guest services. Franchisees generate revenue primarily through nightly room rates while paying 6% royalties on gross revenues plus marketing/destination fees (currently under litigation). Operations require hospitality expertise, 24/7 staffing, and significant capital investment in real estate, furnishings, and systems.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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 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
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.
Score breakdown · what drove the 85 / 100 rating
- 01MEDMassive capital requirement ($12.7M–$16.2M) with zero disclosed average unit economics or revenue benchmarks, making ROI impossible to validate
- 02MINOROnly 1 unit in system with unknown growth trajectory indicates either pre-revenue concept or system collapse; no franchisee success data available
- 03HIGHActive litigation from franchisor (Choice Hotels) pursuing 85+ royalty recovery actions suggests systemic franchisee default/failure and aggressive collection tactics
- 04MINORThree pending class action suits regarding destination marketing fees and anti-competitive practices indicate potential hidden costs and legal exposure for new franchisees
- 05HIGHNo Item 19 financial performance disclosure combined with going concern=False signals either undisclosed losses or franchisor unwillingness to document unit profitability
- 06MINORZero territory protection in extended-stay/hotel market creates cannibalization risk and price competition from future franchisees
- 07MINOR20-year term locks franchisees into relationship with litigious franchisor under unfavorable unit economics
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
18 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Everhome Suites · FDD (2024) PDF