Extended Stay America Suites
Bottom line
- Total investment $210K – $14.3M including a $50K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 34 loans (below the industry average).
- System growing at 15.4% CAGR over 3 years with 427 total units — strong expansion trajectory.
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 EXTENDED STAY AMERICA SUITES unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees own and operate mid-scale extended-stay hotel properties (typically 100–200+ rooms) targeting business travelers and relocating families with weekly/monthly stays. Day-to-day operations include housekeeping, front-desk management, maintenance, guest services, revenue management, and compliance with franchisor brand standards—with limited financial transparency from corporate on actual unit returns.
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 · 24 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Extended Stay America presents elevated risk due to undisclosed financials, significant litigation exposure, unprotected territories, and gross-revenue-based royalties that limit franchisee profitability flexibility.
Score breakdown · what drove the 53 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed—unable to assess actual franchisee profitability or validate ROI claims
- 02MINORWide investment range ($210K–$14.3M) suggests highly variable unit economics and unclear capital requirements
- 03HIGHMultiple active litigation matters including antitrust software claims, IP enforcement actions, and settled guest refund disputes indicate operational and legal vulnerabilities
- 04MINORUnprotected territory creates direct competition risk; franchisees may compete with other company units or future franchisees in same market
- 05MINOR5.5% royalty on gross room revenue (not net) provides no relief during downturns and compounds during high-occupancy periods
- 06MINOR12.1% YoY unit growth is modest for extended-stay sector; unclear if growth is sustainable or reflects new development vs. acquisitions
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
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
EXTENDED STAY AMERICA SUITES · FDD (2026) PDF