Bottom line
- Total investment $8.5M – $11.1M including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 46 loans (below the industry average).
- System growing at 46.5% CAGR over 3 years with 104 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 Suburban Studios unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Suburban Studios franchisees operate boutique hotel properties, managing daily guest services, housekeeping, front desk operations, and revenue management across their protected territory. Franchisees generate revenue primarily from room bookings and are obligated to pay 6.0% of gross room revenues to the franchisor regardless of profitability.
Item 7 · what it costs
The Vitals
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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 35 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Suburban Studios presents elevated risk due to extreme capital requirements paired with zero financial transparency, active multi-jurisdictional litigation, and explosive growth rates that may mask underlying unit economics problems.
Score breakdown · what drove the 54 / 100 rating
- 01MEDMassive capital requirement ($8.5M–$11.1M) with no disclosed average revenue or net income data to validate ROI potential
- 02HIGHMultiple active litigation cases including class action suit, anti-competitive practice claims, and civil rights violations suggesting systemic operational or governance issues
- 03MINORAggressive unit growth of 38.7% YoY raises sustainability concerns and may indicate recruitment-heavy expansion rather than organic profitability
- 04MINORNo Item 19 financial performance disclosure prevents independent verification of franchisee profitability claims
- 05MINOR6.0% royalty on gross room revenues creates fixed cost burden regardless of net profitability, particularly concerning given lack of income transparency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
90 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Suburban Studios · FDD (2024) PDF