GrandStayFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A GrandStay franchise requires a total initial investment of $118K – $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). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $118K – $24.2M
- 7th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 32
- 25th 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
Franchising since 2000. Systems this mature have refined operations and brand recognition.
Bottom line
- Total investment $118K – $24.2M including a $35K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 55/100.
- No 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
- Legal entity
- GRANDSTAY HOSPITALITY, LLC
- Incorporated in
- MN
- HQ
- 1822 Buerkle Rd., White Bear Lake, MN 55110
- Auditor
- LETHERT, SKWIRA, SCHULTZ & CO. LLP
- Audited financials
- Franchisor revenue
- $2.6M
- 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
GrandStay franchisees operate extended-stay hotel properties targeting travelers needing weekly or monthly accommodations. Day-to-day responsibilities include front desk operations, housekeeping management, guest services, maintenance, and revenue management to maximize occupancy and room rates while maintaining brand standards.
- CEO
- Mary Sandberg
- Headquarters
- MN
- Founded
- 2000
- FDD year
- 2026
- States available
- 6
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $0 | $250K |
| Equipment, build-out, other | $83K | $23.9M |
| Total initial investment | $118K | $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
- $118K – $24.2M
- Better than avg vs category
- Liquid capital req'd
- $0 – $250K
- Better than avg vs category
- Franchise fee
- $35K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Room Revenues · 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) | $5K – $250K |
| Total fee load | 7.0% 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 GrandStay Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 32
- Opened
- 2
- 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)
- +6.7%
- Net unit change last year
- 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)
- 2
- 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 20 · 4 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.
Available to sell in · Item 12
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
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
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into GrandStay's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 55 / 100 rating
- 01MINORNo Item 19 financial performance disclosure (revenue and net income not provided) — impossible to validate ROI claims
- 02MINORExtreme investment range spread ($117,900 to $24.2M) suggests inconsistent unit economics or highly variable property costs
- 03MEDSlow unit growth at 6.7% YoY with only 32 total units indicates weak system momentum and limited franchisee success stories
- 04MINORUnprotected territory creates direct competition risk — franchisor can saturate your market without restriction
- 05MEDExtended 20-year term locks franchisees into relationship with limited flexibility for underperforming concepts
- 06MINOR5% royalty on gross (not net) revenues means profitability decreases as operational costs rise
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 |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 96 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
26 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 $118K – $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 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 31 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 B-grade franchise with a risk score of 55 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.