GrandStay Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
GrandStay is an extended-stay and select-service hotel franchise serving weekly, monthly, and business travelers. Franchisees own and operate the properties, managing front desk, housekeeping, and revenue under brand standards.
FranchiseVerdict summary · 2026
A GrandStay franchise requires a total initial investment of $5.0M – $24.2M, including a $35K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $5.0M – $24.2M
- 34th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 32
- 34th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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 $5.0M – $24.2M including a $35K franchise fee, 5.0% ongoing royalty.
- RETURNSTotal Revenue for FY ended Dec 31, 2025 of $1,941,647 comprises royalty fees ($1,339,334), marketing fees ($562,263), and franchise fees ($40,050). Other Income of $99,210 (interest $30,582 + other income $68,628) is reported below operating income. Net Income $815,176. Franchisor is GrandStay Hospitality, LLC.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- GrandStay Hospitality, LLC
- CEO title
- President
- Mary Sandberg
- Incorporated in
- MN
- HQ
- 1822 Buerkle Rd., White Bear Lake, MN 55110
- Auditor
- Lethert, Skwira, Schultz & Co. LLP
- Audited financials
- Franchisor revenue
- $1.9M
- vs $2.1M prior year
Independent franchisee associations
- Independent Franchisee Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Mary Sandberg
- Headquarters
- MN
- Founded
- 2000
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 49% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $140K | $250K |
| Equipment, build-out, other | $4.9M | $23.9M |
| Total initial investment | $5.0M | $24.2M |
Source: GrandStay 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
- $5.0M – $24.2M
- Top 40% of category vs category
- Liquid capital req'd
- $140K – $250K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $500 |
| Training fee | $400 |
| Transfer fee | $5K |
| Renewal fee | $10K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
GrandStay did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one GrandStay unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
1%
Below the 30–60% attractive-franchise band
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: 2026 FDD
Financial Performance
Total Revenue for FY ended Dec 31, 2025 of $1,941,647 comprises royalty fees ($1,339,334), marketing fees ($562,263), and franchise fees ($40,050). Other Income of $99,210 (interest $30,582 + other income $68,628) is reported below operating income. Net Income $815,176. Franchisor is GrandStay Hospitality, LLC.
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 7.0% — below the Lodging average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (+3.2% 3-year CAGR) with 32 units.
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 averages
How GrandStay Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 32
- Opened
- 2
- 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
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +3.2%
- Net unit change over 3 years
- 3-yr CAGR
- +3.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
- Termination rate
- 6.4%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states 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.
6
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $9.7M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- N/A
- limited sample (8 loans) — rate not shown below 10
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
- 3
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
GrandStay presents moderate-to-elevated risk due to undisclosed financial performance, minimal growth trajectory, unprotected territory, and inability to benchmark expected returns against peer franchisees.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Lethert, Skwira, Schultz & Co. LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 71 / 100 verdict
- 01MINORNo Item 19 financial performance disclosure (revenue and net income not provided) — impossible to validate ROI claims
- 02MEDSlow unit growth at 6.7% YoY with only 32 total units indicates weak system momentum and limited franchisee success stories
- 03MINORUnprotected territory creates direct competition risk — franchisor can saturate your market without restriction
- 04MEDExtended 20-year term locks franchisees into relationship with limited flexibility for underperforming concepts
- 05MINOR5% royalty on gross (not net) revenues means profitability decreases as operational costs rise
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| 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 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Arbitration location | Minnesota (mediation location chosen by mediator; litigation in Minnesota) |
| Jury trial waiver | No |
| Governing law | MN |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 96 hrs
- Training location
- Virtual, GrandStay Corporate Headquarters (White Bear Lake, MN) or designated location
- Ongoing training
- Required
- Site selection
- Franchisee selects site; franchisor reviews and approves/disapproves
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
GrandStay · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a GrandStay franchise?
The total investment to open a GrandStay franchise ranges from $5.0M – $24.2M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do GrandStay franchise owners earn?
GrandStay 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 Item 19 in the GrandStay 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 GrandStay FDD and qualifies whose outlets they describe.
What is GrandStay's franchise failure rate?
SBA 7(a) loan charge-off data is not available for GrandStay (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 GrandStay franchise locations are there?
As of their most recent FDD filing, GrandStay has 32 total units in the United States, including 32 franchised units and 0 company-owned units. 2 new units were opened in the latest reporting year.
Is GrandStay a good franchise to buy?
FranchiseVerdict rates GrandStay as a A-grade franchise with a verdict score of 71 out of 100 (higher is better), 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
Are you the franchisor?
If you represent GrandStay, you can request corrections or provide updated information.
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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.