Extended Stay America SuitesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A EXTENDED STAY AMERICA SUITES franchise requires a total initial investment of $210K – $14.3M, including a $50K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 22 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $210K – $14.3M
- 11th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 427
- 46th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
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
Only 0.0% of 22 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $210K – $14.3M including a $50K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "Occupancy, ADR, RevPAR, and EsOcc" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 33/100. SBA loan charge-off rate of 0.0% across 22 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- ESH Strategies Franchise LLC
- Parent company
- ESH Hospitality Strategies LLC
- CEO title
- President
- Greg Juceam
- CEO experience
- 4 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 13024 Ballantyne Corporate Place, Suite 1000, Charlotte, NC 28277
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $25.8M
- vs $29.3M prior year
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.
- CEO
- Greg Juceam
- Headquarters
- NC
- Founded
- 2010
- FDD year
- 2026
- States available
- 42
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $175K | $250K |
| Equipment, build-out, other | $0 | $14.0M |
| Total initial investment | $210K | $14.3M |
Source: EXTENDED STAY AMERICA SUITES 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $210K – $14.3M
- Better than avg vs category
- Liquid capital req'd
- $175K – $250K
- Better than avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenue · typical 6–8%
- Ad fund
- 4.5%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 4.5% of gross sales |
| Transfer fee | $50K |
| Total fee load | 10.0% of rev |
Financial Performance
This brand's FDD disclosed "Occupancy, ADR, RevPAR, and EsOcc" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Extended Stay America Suites Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 427
- Opened
- 23
- Last reporting year
- Closed
- 9
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 307
- Corporate units in the system
- % franchised
- 28%
- vs corporate-owned
- Net growth (yr3)
- +12.1%
- Net unit change last year
- 3-yr CAGR
- +15.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 21
- Transfer rate
- 4.9%
- Owners selling to other franchisees
- Continuity rate
- 92.3%
- Units that stayed open
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.3%
- Units that stopped operating
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 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.
- Total loans
- 22
- Loan volume
- $77.6M
- Median loan
- $3.5M
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 22 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
Two pending antitrust class actions alleging Sherman Act violations related to revenue management algorithm software. Company believes lawsuits are without merit and intends to vigorously defend.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 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
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, NC |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 4 |
View Item 3 litigation summary
Two pending antitrust class actions alleging Sherman Act violations related to revenue management algorithm software. Company believes lawsuits are without merit and intends to vigorously defend.
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 12 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- POS system
- Property Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management System
Item 20 · call current owners
Franchisee Contacts
94 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
EXTENDED STAY AMERICA SUITES · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a EXTENDED STAY AMERICA SUITES franchise?
The total investment to open a EXTENDED STAY AMERICA SUITES franchise ranges from $210K – $14.3M, 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 EXTENDED STAY AMERICA SUITES franchise owners earn?
EXTENDED STAY AMERICA 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 EXTENDED STAY AMERICA SUITES's franchise failure rate?
Based on SBA 7(a) loan data, EXTENDED STAY AMERICA SUITES has a charge-off rate of 0.0% across 22 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many EXTENDED STAY AMERICA SUITES franchise locations are there?
As of their most recent FDD filing, EXTENDED STAY AMERICA SUITES has 427 total units in the United States, including 120 franchised units and 307 company-owned units. 23 new units were opened in the latest reporting year.
Is EXTENDED STAY AMERICA SUITES a good franchise to buy?
FranchiseVerdict rates EXTENDED STAY AMERICA SUITES as a A-grade franchise with a risk score of 33 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.
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.