Suburban Studios Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Suburban Studios is a Choice Hotels economy extended-stay franchise with in-room kitchens for weekly and monthly guests. Franchisees own and operate individual properties, running rooms, housekeeping, and revenue management.
FranchiseVerdict summary · 2026
A Suburban Studios franchise requires a total initial investment of $8.5M – $11.1M, including a $40K 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: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $8.5M – $11.1M
- 39th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 104
- 48th 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 $8.5M – $11.1M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- GROWTHSystem growing at 46.5% CAGR over 3 years with 104 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
- None
- Ultimate parent
- Choice Hotels International, Inc.
- Predecessor
- Suburban Franchise Holding Company, Inc.
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- 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.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1963
- FDD year
- 2024
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost is about average for a lodging franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $40K | — | |
| Architectural Plans & Inspections | $60K | $150K | |
| Legal Fees | $10K | $45K | |
| Environmental Impact Study (if necessary) | $0 | $16K | |
| Market Study | $3K | $15K | |
| Construction (excluding soft costs) | $7.2M | $8.8M | |
| Insurance | $45K | $185K | |
| Pre-Opening Advertising | $5K | $50K | |
| Furniture, Fixtures & Equipment | $609K | $744K | |
| Hardware to operate the choiceADVANTAGE property management systemnot refundable | $4K | $11K | |
| choiceADVANTAGE Software License and Systems Onboarding Feesnot refundable | $5K | $7K | |
| Opening Inventory of Supplies | $202K | $339K | |
| Orientation and Hospitality Training Feesnot refundable | $2K | $3K | |
| High Speed Internet Access for in-room, in-lobby, public areas and meeting rooms | $14K | $25K | |
| Mandatory On-Premise Signs | $20K | $80K | |
| Design and engineering costs and inspections | $100K | $180K | |
| Working Capital Required Before Operations Begin | $145K | $350K | |
| Additional Funds for 3-Month Initial Period | $50K | $75K | |
| Total initial investment | $8.5M | $11.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $8.5M – $11.1M
- Top 40% of category vs category
- Liquid capital req'd
- $145K – $350K
- Top 40% of category vs category
- Franchise fee
- $40K
- 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 |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $202K – $339K |
| 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 Suburban Studios 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 Suburban Studios 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
An occupancy metric, not unit revenue
- Item 19 type
- occupancy, ADR and RevPAR
- Sample size
- 70
- vs category median 98
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 175 Lodging brands
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% — below the Lodging average of 10.4%.
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 46.5% CAGR over 3 years across 104 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 averages
How Suburban Studios Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 104
- Opened
- 31
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +46.5%
- Net unit change over 3 years
- 3-yr CAGR
- +46.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 31
- Closed (3yr)
- 2
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 1.5%
- Franchisor-initiated terminations
- Ceased ops
- 9.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 30 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.
30
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 29
- Loan volume
- $83.7M
- Median loan
- $2.9M
- average
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
- 0.0%
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 0
- Typical loan rate
- 7.1%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 39%
- top lender's share
Vintage analysis
Suburban Studios charge-off rate by loan vintage
Top lenders financing Suburban Studios franchisees
Showing 3 of 13 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Suburban Studios's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 13 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
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
Financials are parent-level (Choice Hotels) with strong $35.6M net worth and $258.5M net income on $1.54B revenue. The 33 litigation matters (3 pending, including a $403M Canadian class action and RICO claims) are against the large parent hotel group, normal relative to a multi-thousand-unit system. Franchisor-specific risk is low.
Litigation (Item 3)
3 pending matters as of FDD date: (1) Norma Knuth v. Radisson Hotels International (Canadian class action re undisclosed destination marketing fees, $403M demand, class not yet certified); (2) Jai Sai Baba, LLC et al. v. Choice Hotels International (RICO/Sherman Act/anti-competitive practices claims by ~90 franchise owners, stayed pending arbitration) with related Choice v. DIP Hospitality arbitration ($498,495.93 sought, $3M counterclaim); (3) T&T Management, Inc. v. Choice Hotels International, Country Inn & Suites by Radisson (breach of license agreement, guest data misuse). Additionally, numerous collection arbitrations/lawsuits initiated by Choice against defaulting franchisees in the prior fiscal year.
Largest disclosed settlement: $85,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 statements are the audited consolidated financial statements of the franchisor, Choice Hotels International, Inc. and subsidiaries, for the years ended December 31, 2023/2022/2021. All figures reported in thousands and scaled to whole USD (x1000). FY2023 total revenues $1,544,165K; balance sheet reconciles: total liabilities $2,359,201K + total shareholders' equity $35,598K = total assets $2,394,799K. other_revenue is the 'Other' revenue line ($46,051K); the much larger 'Other revenues from franchised and managed properties' ($784,160K) is a pass-through line not used here.
ⓘ 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: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 63 / 100 verdict
- 01MINORParent-level financials, strong ($258.5M net income)
- 02HIGH33 litigation count but against large parent system
- 03MINORPositive growth +46.5%, low turnover 1.9%
- 04MEDAudited, Item 19 disclosed
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 | Radius or geographically defined area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| 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 | 4 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 7 |
View Item 3 litigation summary
3 pending matters as of FDD date: (1) Norma Knuth v. Radisson Hotels International (Canadian class action re undisclosed destination marketing fees, $403M demand, class not yet certified); (2) Jai Sai Baba, LLC et al. v. Choice Hotels International (RICO/Sherman Act/anti-competitive practices claims by ~90 franchise owners, stayed pending arbitration) with related Choice v. DIP Hospitality arbitration ($498,495.93 sought, $3M counterclaim); (3) T&T Management, Inc. v. Choice Hotels International, Country Inn & Suites by Radisson (breach of license agreement, guest data misuse). Additionally, numerous collection arbitrations/lawsuits initiated by Choice against defaulting franchisees in the prior fiscal year.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 105 hrs
- Training location
- On-site and corporate
- 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
74 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Suburban Studios · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Suburban Studios franchise?
The total investment to open a Suburban Studios franchise ranges from $8.5M – $11.1M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Suburban Studios franchise owners earn?
No average owner earnings figure for Suburban Studios is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Suburban Studios 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 Suburban Studios FDD and qualifies whose outlets they describe.
What is Suburban Studios's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Suburban Studios (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 Suburban Studios franchise locations are there?
As of their most recent FDD filing, Suburban Studios has 104 total units in the United States, including 104 franchised units and 0 company-owned units. 31 new units were opened in the latest reporting year.
Is Suburban Studios a good franchise to buy?
FranchiseVerdict rates Suburban Studios as a B-grade franchise with a verdict score of 63 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.
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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.