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Everhome Suites Franchise Cost, Revenue & Review 2026

LodgingMDFranchising since 2019
BAbove averageAbove average46/100Editorial grade from public filings; not investment advice.
Investment
$12.7M – $16.2M
Disclosed sales
not disclosed
SBA charge-off
Not SBA-matched

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00880Data QualityStandard71%FDD 2024 · 2yr old
Manager-run OKNo: No territory protection

Data from FDD filing

Analysis by FranchiseVerdict Research · Methodology

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago

Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Investment
$12.7M – $16.2M
48th pct Lodging
Avg gross sales
N/A
1 outlet
Royalty
6.0%
53rd pct Lodging
Units
1
7th pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$12.7M – $16.2M
Median $8.9M
above median ↑, worse than category
Franchise Fee
$50K – $50K
Median $50K
near median
Liquid Capital Req'd
$200K – $420K
Median $312K
near median
Avg Revenue
Not disclosed
Franchisor makes none
Royalty Rate
6.0%
Median 5.0%
above median ↑, worse than category
Ongoing Fees
8.5% of rev
Median 8.5%
near median
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
1 units
Median 60 units
below median ↓, worse than category
Turnover Rate
N/A
Median 0.7%
below median ↓, better than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
91 cases
Review carefully

Green = favorable by >10% vs Lodging median · 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.
  • RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
  • RISKVerdict B (Above average), verdict score 46/100 (higher is better).
  • GROWTHNegative, pipeline stalled: 56 agreements signed but not yet open against 1 open outlets (Item 20).
  • LEGAL91 litigation matters disclosed in Item 3, higher than typical. Of the 15 listed on this page, 14 name the franchisor itself, 1 its parent, affiliates or predecessor. Pending claims are allegations, not findings.

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.
FDD Item 1, page 9 of the 2024 FDD
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.

Same owner · FDD Item 1, page 9

11 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

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 62% above the typical lodging franchise.

Total investment (Item 7)$12.7M – $16.2MCited, not corroborated — printed on page 50 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$50,000Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Royalty6.0%Cited, not corroborated — printed on page 34 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund2.5%Not cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
Working capital$200K – $420K

Source: FDD 2024 · Items 5–7

Full Item 7 breakdown20 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
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%
typical 6–8%
Ad fund
2.5%
typical 3–5%
Total fee load
8.5%
vs 9–13% typical

Ongoing fees · Item 6

Everhome Suites: Item 6 recurring fees
FeeAmount
Royalty6.0% of gross sales
Marketing / ad fund2.5% of gross sales
Technology fee$472
Training fee$1K
Transfer fee$50K
Inventory (initial)$213K – $330K
Total fee load8.5% of rev
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

Everhome Suites makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.

Returns model · single-unit ROIC

What would one Everhome Suites unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $12.7M–$16.2M (midpoint used)
FDD reports $200K–$420K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$14.7M
Payback
—
Single-unit 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 point.

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

No financial performance representation

This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.

Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Showing the headline figures — all 136 extracted fields are in the Full FDD Report · $19 →

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% (near the Lodging median).

Disclosure

This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

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 medians

How Everhome Suites Compares

Metric
Everhome Suites
Category median
vs median
Investment
$14.4M
$8.9Mmiddle half $1.2M–$18.3M · n=96
Above median, worse than category
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
1
60middle half 6–245 · n=126
Below median, worse than category

Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units1Verified — printed on page 87 of the 2024 FDD (Item 20), and the table's own arithmetic closes on it two ways.
3-yr growth+100.0% (favorable vs category)

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
N/A
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

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
0
Reacquired
0
Franchisor bought back
Signed, not yet open
56
56.00 per open outlet · Item 20 Table 5
Projected new
13
Franchisor's next-year forecast
Continuity rate
100.0%
Units that stayed open
2021
0
Franchised units
2022
1+1
Franchised units
2023
1±0
Franchised units

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)

Growth insight

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?

SBA charge-offNot SBA-matched
Verdict score46/100 (higher is better)
Litigation91 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average46Verdict score 46/100

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.

Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.

Low confidence±18 pts
2864

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

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: $85,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Ernst & Young LLP

Franchisor revenue (Item 21)

Yr 1: $1544.2MYr 2: $1401.9MNon-royalty: $784.2M

Franchisor entity revenue (not unit-level)

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.

ⓘ 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

  1. 01MINOROnly 1 unit in system with unknown growth trajectory indicates either pre-revenue concept or system collapse; no franchisee success data available
  2. 02HIGHActive litigation from franchisor (Choice Hotels) pursuing 85+ royalty recovery actions suggests systemic franchisee default/failure and aggressive collection tactics
  3. 03MINORThree pending class action suits regarding destination marketing fees and anti-competitive practices indicate potential hidden costs and legal exposure for new franchisees
  4. 04MINORZero territory protection in extended-stay/hotel market creates cannibalization risk and price competition from future franchisees
  5. 05MINOR20-year term locks franchisees into relationship with litigious franchisor under unfavorable unit economics

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 136 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail91 matters · Item 3

Litigation cases

The franchisor

Pending (2)

  • T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC

    pending

    Brought by a franchisee · filed 2023-06-26 · United States District Court for the Middle District of Florida · 6:23-cv-01187

    “T&T Management, Inc. v. Choice Hotels International, Inc., Country Inn & Suites by Radisson, Inc. and Sunshine Fund Port Orange, LLC United States District Court for the Middle District of Florida, Case No. 6:23-cv-01187”Page 22 of the 2024 FDD, Item 3

    Outcome:“The Court has not yet ruled on the pending Motions.” (page 23)

  • Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al.

    pending

    Brought by a franchisee · filed 2020-06-12 · United States District Court for the Eastern District of Pennsylvania · 2:20-cv-02823

    “Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al. United States District Court for the Eastern District of Pennsylvania, Case No. 2:20-cv- 02823 On June 12, 2020 (amended on July 15, 2020), approximately ninety current and former franchise owners that own and operate one or more Choice branded hotels (“Plaintiffs”) filed suit against Choice and Choice Hotels Owner Council”Page 22 of the 2024 FDD, Item 3

    Outcome:“On July 29, 2020, Choice filed a motion to stay the litigation and compel individual arbitration proceedings. On March 19, 2021, the Court granted motion. This case remains stayed, and the parties provide the Court with monthly status updates.”

Concluded (4)

  • Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al.

    judgment

    Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the District of Maryland, Southern Division · 01-21-0004-5563; 8:2023cv01685

    “Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al. American Arbitration Association, Case #01-21-0004-5563 United States District Court for the District of Maryland, Southern Division, Case No. 8:2023cv01685”Page 30 of the 2024 FDD, Item 3

    Outcome:“A Final Award was issued on May 9, 2023, against Choice and in favor of Dahya in the amount of $882 and in favor of Choice and against Dahya for the sum of $603,483.00. Choice filed a motion to confirm the Final Award against Dahya and the Final Award was confirmed into a judgment on January 17, 2024 at the motion to seal hearing.”

  • Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al.

    judgment

    Brought by a franchisee · filed 2021-06-29 · American Arbitration Association; United States District Court for the Eastern District of Pennsylvania · 01-21-0004-5554; 5:20cv2823

    “Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al. American Arbitration Association, Case #01-21-0004-5554 United States District Court for the Eastern District of Pennsylvania, Case #5:20cv2823”Page 30 of the 2024 FDD, Item 3

    Outcome:“A Final Award was issued on July 27, 2023 against Choice and in favor of Highmark in the amount of $740,072.25. Highmark filed a motion to confirm the Final Award and Choice filed a motion to vacate in part. Choice’s motion was denied, and a final judgment was entered against Choice in the amount of $779,398.40 on March 4, 2024.”

  • Sender Kohl v. Choice Hotels International, Inc.

    settled

    Brought by a franchisee · filed 2018-10-29 · United States District Court for the Southern District of Florida, Fort Lauderdale Division; American Arbitration Association · 0:18-cv-62597; 01-19-0000-1797

    “Sender Kohl v. Choice Hotels International, Inc. United States District Court for the Southern District of Florida, Fort Lauderdale Division, Case #0:18-cv-62597 and American Arbitration Association, Case #01-19-0000-1797”Page 30 of the 2024 FDD, Item 3

    Outcome:“As part of the settlement, Choice agreed to pay its former franchisee $85,000.00 in exchange for dismissal of the arbitration.”

  • Wydredge, L.L.C., H & P Investments, Clayton Wyman, Barry Eldredge and James Rumpsa v. Choice Hotels International, Inc.

    settled

    Brought by a franchisee · filed 2012-08-31 · American Arbitration Association · 16-114-000517-12

    “Wydredge, L.L.C., H & P Investments, Clayton Wyman, Barry Eldredge and James Rumpsa v. Choice Hotels International, Inc. American Arbitration Association, Case # 16-114-000517-12”Page 29 of the 2024 FDD, Item 3

    Outcome:“On July 7, 2014, the parties settled this dispute. As part of the settlement, Choice made certain concessions to franchisees in connection with two existing franchise agreements for other properties owned by franchisees reducing the royalty rate to 4.65% for 24 months and 4.25% for 24 months respectively.”

Status not stated in the filing (8)

  • 144 Investors, LLC and Surjeet Kaur

    Brought against a franchisee · filed 2023-08-11 · U.S. District Court Eastern District of New York (Brooklyn) · 1:23cv06066

    “144 Investors, LLC and Surjeet Kaur U.S. District Court Eastern District of New York (Brooklyn) 1:23cv06066 August 11, 2023”Page 29 of the 2024 FDD, Item 3
  • 67585 Hacienda, LLC and Calvin Chun

    Brought against a franchisee · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4410

    “67585 Hacienda, LLC and Calvin Chun American Arbitration Association 01-23-0000-4410 January 31, 2023”Page 23 of the 2024 FDD, Item 3
  • Donald R. Dreiske, Lance B. Stuart, James R. Stuart, Harvey W. Lester and Rebecca Kenny

    Brought against a franchisee · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4309

    “Donald R. Dreiske, Lance B. Stuart, James R. Stuart, Harvey W. Lester and Rebecca Kenny American Arbitration Association 01-23-0000-4309 January 31, 2023”Page 23 of the 2024 FDD, Item 3
  • Jai Sai Baba, LLC, Dipesh Patel and MDPD13 Investments, LLC

    Brought against a franchisee · filed 2023 · United States District Court for the District of Maryland, Southern Division, transferred to United States District Court for the Eastern District of Pennsylvania, Philadelphia · 8:2023cv00146 8:2023cv03360

    “Jai Sai Baba, LLC, Dipesh Patel and MDPD13 Investments, LLC United States District Court for the District of Maryland, Southern Division, transferred to United States District Court for the Eastern District of Pennsylvania, Philadelphia 8:2023cv00146 8:2023cv03360 January 19, 2023 August 25, 2023”Page 23 of the 2024 FDD, Item 3
  • Jeet Hospitality, Inc. and Indravaden Patel

    Brought against a franchisee · filed 2023-02-02 · American Arbitration Association · 01-23-0000-4726

    “Jeet Hospitality, Inc. and Indravaden Patel American Arbitration Association 01-23-0000-4726 February 2, 2023”Page 23 of the 2024 FDD, Item 3
  • Kei. V. Inc. and Seyed A. Mousavizadeh

    Brought against a franchisee · filed 2023-02-02 · American Arbitration Association · 01-23-0000-4732

    “Kei. V. Inc. and Seyed A. Mousavizadeh American Arbitration Association 01-23-0000-4732 February 2, 2023”Page 23 of the 2024 FDD, Item 3
  • Le Cercle Rouge, LLC, David Adehou and Milan G. Mody

    Brought against a franchisee · filed 2023-01-31 · American Arbitration Association · 01-23-0000-4439

    “Le Cercle Rouge, LLC, David Adehou and Milan G. Mody American Arbitration Association 01-23-0000-4439 January 31, 2023”Page 23 of the 2024 FDD, Item 3
  • SC Hotel Group, LLC, SC Hotel Partners, LLC, Lajwanti Gandhi and Rolan Chowdhury

    Brought against a franchisee · filed 2023-01-18 · Circuit Court for Montgomery County, Maryland · C15CV23000171

    “SC Hotel Group, LLC, SC Hotel Partners, LLC, Lajwanti Gandhi and Rolan Chowdhury Circuit Court for Montgomery County, Maryland C15CV23000171 January 18, 2023”Page 23 of the 2024 FDD, Item 3

Parent, affiliates and predecessor

Pending (1)

  • Norma Knuth v. Radisson Hotels International, Inc., et al.

    pending

    Third-party plaintiff · Country Inn & Suites by Radisson, Inc. ('Country') and Radisson Hotels International, Inc. (Choice subsidiaries since 2022), among over 25 defendants · filed 2014-12-05 · Court of Queen's Bench for Saskatchewan · QBG No. 2560 of 2014

    “Norma Knuth v. Radisson Hotels International, Inc., et al. Court of Queen’s Bench for Saskatchewan, Court File No. QBG No. 2560 of 2014 On December 5, 2014, Norma Knuth filed a complaint under the Class Actions Act against over 25 named defendants, including Country, alleging that the defendants wrongfully collected undisclosed destination marketing fees”Page 21 of the 2024 FDD, Item 3

    Outcome:“On August 29, 2019, the court denied Radisson’s motion for summary judgment, holding that it was premature. Radisson intends to reassert its summary judgment motion arguments at the appropriate time.” (page 22)

This list shows 15 of the 91 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal termNot extracted
TerritoryNone (caution)
Initial training148 hrs

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Allowed renewalsℹ0
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsGranted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Right of first refusalℹNo
Transfer requires consentYes
Termination notice10 days
Termination groundsℹ3
Curable defaultsℹ2
Mandatory arbitrationYes
Arbitration locationMaryland
Jury trial waiverYes
Governing lawMD
Litigation count91
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

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns Everhome Suites?

Everhome Suites is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2024 filing.

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 B-grade franchise with a verdict score of 46 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.