Everhome SuitesFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $12.7M – $16.2M
- 43rd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 1
- 7th 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
92 legal cases disclosed in the FDD. Read Item 3 before signing.
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.
- Verdict A (Top Quintile) with a risk score of 40/100.
- 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
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.5B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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.
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing · 20 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
- Near category avg vs category
- Liquid capital req'd
- $250K – $495K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Room Revenues · 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 |
| Transfer fee | $50K |
| Inventory (initial) | $213K – $330K |
| Total fee load | 8.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Everhome Suites Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 0
- 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 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 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
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)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 40 / 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Site-specific |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 60 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 92 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 105 hrs
- Training location
- On-site
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Everhome Suites · FDD (2024) PDF
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 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 0 franchised units and 0 company-owned units.
Is Everhome Suites a good franchise to buy?
FranchiseVerdict rates Everhome Suites as a A-grade franchise with a risk score of 40 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.
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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.