MainStay Suites Franchise Cost, Revenue & Review 2026
- Investment
- $8.7M – $15.8M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (9)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
MainStay Suites is a Choice Hotels economy extended-stay franchise with in-room kitchens for longer stays. Franchisees own and operate individual properties, running rooms, housekeeping, and revenue management.
FranchiseVerdict summary · 2026
A MainStay Suites franchise requires a total initial investment of $8.7M – $15.8M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), 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: strong✓ 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 scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $8.7M – $15.8M
- 40th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 126
- 49th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
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 $8.7M – $15.8M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports occupancy rate, ADR, and RevPAR for the Performance Sample (112 of 126 hotels), not gross sales quartiles or single-unit gross. No quartile or per-unit gross sales figures disclosed.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHPositive: net +11 franchised outlets in the latest year (14 opened, 3 closed) (Item 20).
- GROWTHSystem growing at 24.8% CAGR over 3 years with 126 total units. Strong expansion trajectory.
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
- Incorporated in
- Delaware
- 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.
- ASCEND HOTEL COLLECTIONA
- Clarion / Clarion PointeB
- Country Inn & Suites by RadissonB
- Econo LodgeB
- Everhome SuitesB
- Park Inn by RadissonD
- RODEWAY INNB
- Radisson IndividualsC
- Sleep InnB
- Suburban StudiosB
- WoodSpring SuitesB
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
- Maryland
- Founded
- 1963
- FDD year
- 2024
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost runs 38% above the typical lodging franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $200K | $420K |
| Equipment, build-out, other | $8.4M | $15.3M |
| Total initial investment | $8.7M | $15.8M |
Source: MainStay Suites 2024 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
- $8.7M – $15.8M
- Top 40% 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
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $472 |
| Transfer fee | $50K |
| Inventory (initial) | $213K – $330K |
| Total fee load | 8.5% of rev |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for MainStay Suites is on file. 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 MainStay Suites unit return on the cash you put in?
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.
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.
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
Item 19 reports occupancy rate, ADR, and RevPAR for the Performance Sample (112 of 126 hotels), not gross sales quartiles or single-unit gross. No quartile or per-unit gross sales figures disclosed.
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
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 24.8% CAGR over 3 years across 126 units — operators are staying and new ones are joining.
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 MainStay Suites Compares
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?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 126
- Opened
- 14
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +24.8%
- Net unit change over 3 years
- 3-yr CAGR
- +24.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Termination rate
- 1.1%
- Franchisor-initiated terminations
- Ceased ops
- 1.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 40 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.
40
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
3 current owners across 2 states.
- CA 2
- VI 1
Counts only, from the list the franchisor prints in Item 20; 37 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $15.7M
- Median loan
- $1.3M
- 50th percentile
- Charge-off rate
- Under 10 loans (9)
- Insufficient SBA coverage: 9 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (9)
- 5-yr charge-off
- Under 10 loans (9)
- Loans approved 2021+
- Active lenders
- 9
- 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
MainStay Suites presents elevated risk due to franchisor's aggressive litigation posture (71 royalty actions annually), opaque profitability metrics, anemic unit growth, and high capital requirements relative to disclosed revenues.
Why this reads harsher than the A 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.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Section I discloses 3 pending matters: (1) Norma Knuth v. Radisson (Saskatchewan class action re undisclosed destination marketing fees, $403M demand); (2) Jai Sai Baba LLC v. Choice (E.D. Pa.; ~90 franchisees alleging RICO/Sherman Act/Civil Rights/state franchise law violations, stayed pending individual arbitration); (3) T&T Management v. Choice (M.D. Fla.; breach/data misappropriation re a Country Inn hotel). Section II lists many franchisor-initiated AAA arbitrations and court actions to recover royalties and liquidated damages.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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: No
- Restricted to system-approved products: No
Score breakdown · what drove the 76 / 100 verdict
- 01HIGHAggressive litigation pattern: 71 royalty recovery actions in one fiscal year suggests systemic collection issues or franchisee financial distress
- 02MEDHigh investment threshold ($8.7M–$15.8M) with undisclosed net income creates opacity on actual profitability and ROI
- 03MEDModest unit growth (9.6% YoY) with 126 units is underwhelming for a branded economy hotel chain; limited scale advantages
- 04MINORSignificant post-termination IP enforcement actions (12 cases) indicate compliance/brand protection problems among departed franchisees
- 05MEDRevenue-to-investment ratio concern: $2.1M average revenue against $8.7M–$15.8M investment suggests 5–8 year payback at best, before accounting for undisclosed expenses
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| 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 | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 3 |
View Item 3 litigation summary
Section I discloses 3 pending matters: (1) Norma Knuth v. Radisson (Saskatchewan class action re undisclosed destination marketing fees, $403M demand); (2) Jai Sai Baba LLC v. Choice (E.D. Pa.; ~90 franchisees alleging RICO/Sherman Act/Civil Rights/state franchise law violations, stayed pending individual arbitration); (3) T&T Management v. Choice (M.D. Fla.; breach/data misappropriation re a Country Inn hotel). Section II lists many franchisor-initiated AAA arbitrations and court actions to recover royalties and liquidated damages.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 105 hrs
- Training location
- North Bethesda, Maryland; Scottsdale, Arizona; online; or a property designated by franchisor
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
40 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MainStay Suites franchise?
The total investment to open a MainStay Suites franchise ranges from $8.7M – $15.8M, 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 MainStay Suites franchise owners earn?
Item 19 of the MainStay Suites FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns MainStay Suites?
MainStay Suites is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the MainStay 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 MainStay Suites FDD and qualifies whose outlets they describe.
What is MainStay Suites's franchise failure rate?
SBA 7(a) loan charge-off data is not available for MainStay 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 MainStay Suites franchise locations are there?
As of their most recent FDD filing, MainStay Suites has 126 total units in the United States, including 126 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is MainStay Suites a good franchise to buy?
FranchiseVerdict rates MainStay Suites as a A-grade franchise with a verdict score of 76 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.
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.