FranchiseVerdict
stayAPT Suites logo
FV-02442·MODERATEExcellent81

stayAPT Suites

Lodging - Hotels & MotelsFranchising since 2020Website
Investment
$7.5M – $12.9M
59th pct Hotels & Mote…
Avg revenue
7th pct Hotels & Mote…
Royalty
Units
32
48th pct Hotels & Mote…
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $7.5M – $12.9M including a $40K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
  • System growing at 350.0% CAGR over 3 years with 32 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
LG AS Franchisor LLC
Parent company
LGAS Brand Parent LLC
Incorporated in
Delaware
HQ
10801 Monroe Road, Suite 200, Matthews, NC 28105
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$2.7M
vs $3.9M prior year

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 stayAPT Suites unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: hospitality
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $7.5M–$12.9M
Working capital
$
FDD reports $90K–$225K

Unlevered ROIC · per unit

1%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$90K
EBITDA margin
12.0%
Total invested
$10.4M
Payback
1383 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Franchisees develop and operate extended-stay hotel properties under the stayAPT Suites brand, managing day-to-day operations including housekeeping, front desk, maintenance, and guest services while paying a $30K+ annual royalty. Properties target mid-market extended-stay travelers seeking monthly/weekly rates with furnished rooms and full kitchens.

CEO
Gary DeLapp
Founded
2018
FDD year
2025
States available
7

Item 7 · what it costs

The Vitals

Total investment
$7.5M – $12.9M
All-in to open one unit
Liquid capital
$90K – $225K
Cash you must have on hand
Franchise fee
$40K
Royalty
Greater of $2,500 per month or 5% of Gross Room Revenues
Ad fund
2.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical

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

Total units
32
Opened
7
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
23
Corporate units in the system
% franchised
28%
vs corporate-owned
Net growth (yr3)
Outlier (see FDD)
Likely small-sample artifact
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2023
9+15
Franchised units
2024
2
Franchised units
2025
2
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 13 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 13 states
Not registered

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.

Total loans
4
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

62
Risk · 0-100
MODERATE62 / 100

stayAPT Suites presents CAUTION-level risk: extreme growth velocity with zero transparency on unit profitability, high capital requirements, and an immature 32-unit system with minimal historical performance data.

Score breakdown · what drove the 62 / 100 rating

  1. 01MINORMassive unit growth (350% YoY) suggests either aggressive expansion into immature market or unsustainable recruiting; 32 units is still very small system
  2. 02MINORNo average unit volume (AUV) or net income disclosure in FDD Item 19 — impossible to validate ROI claims or unit economics
  3. 03MINORHigh capital requirement ($7.5M–$12.9M) combined with opaque profitability creates significant financial risk for franchisees
  4. 04MINORRoyalty structure (greater of $2,500/month floor or 5% of gross) means minimum $30K annual payment regardless of profitability
  5. 05MEDExtended 20-year term locks franchisees into long-term commitment with brand that has minimal track record and undisclosed financial performance
  6. 06MINORHypergrowth trajectory (350% YoY) in extended-stay hotel segment suggests potential market saturation or recruitment-driven growth model rather than organic unit success

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius
Protected territory
Yes
Initial term
20 years
Renewal term
20 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
0.5 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
North Carolina

Item 11

Training & Operations

Classroom training
23 hrs
On-the-job training
19 hrs
POS system
Jonas Chorum PMS
Operating tech stack

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

31 numbers

Locked
(706) 883-••••
stayAPT Suites LaGrange Catarina of Tucson, LLC
GA
(423) 709-••••
stayAPT Suites Cleveland Frontage Lodging, LLC
TN
(864) 444-••••
SC

One-time purchase · CSV download · Validation questions included

FDD download

stayAPT Suites · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above