Surestay Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Surestay franchise requires a total initial investment of $881K – $2.9M, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 4.5% charge-off rate across 58 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $881K – $2.9M
- 23rd pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 16
- 21st pct Lodging
- SBA charge-off
- 4.5%
- % of SBA 7(a) loans not repaid · median varies by category
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
- Total investment $881K – $2.9M including a $25K franchise fee, 5.0% ongoing royalty.
- Item 19 states the franchisor makes no financial performance representations; no sales/earnings data disclosed.
- Verdict A (Strongest tier), verdict score 59/100 (higher is better). SBA loan charge-off rate of 4.5% across 58 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 27 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- SureStay, Inc.
- Parent company
- Best Western International, Inc.
- CEO title
- President
- Lawrence M. Cuculic
- Incorporated in
- Arizona
- HQ
- 6201 N. 24th Parkway, Phoenix, AZ 85016
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $547.5M
- vs $520.9M prior year
Overview
About
SureStay, Inc. licenses independent hotel owners to convert and operate existing hotels under the SureStay Collection by Best Western, SureStay, and SureStay Studio brand names. The company is a wholly-owned affiliate of Best Western International and offers a global collection of lower-midscale and upper-economy hotels.
- CEO
- Lawrence M. Cuculic
- Headquarters
- Arizona
- Founded
- 2016
- FDD year
- 2026
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 81% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $750K | $825K |
| Equipment, build-out, other | $106K | $2.1M |
| Total initial investment | $881K | $2.9M |
Source: Surestay 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
- $881K – $2.9M
- Top 40% of category vs category
- Liquid capital req'd
- $750K – $825K
- Middle of category vs category
- Franchise fee
- $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- OTA Marketing Fund Assessment: $250 annual fee per System…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $3 |
| Transfer fee | $10K |
| Inventory (initial) | $75K – $150K |
What do units actually make?
Source: FDD 2026 · Item 19
Financial Performance
Item 19 states the franchisor makes no financial performance representations; no sales/earnings data disclosed.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
5.0% royalty.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Surestay Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 12
- Last reporting year
- Closed
- 1
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 0
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 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.
12
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
- 58
- Loan volume
- $158.2M
- Median loan
- $2.6M
- 50th percentile
- Charge-off rate
- 4.5%
- 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)
- 95.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 26
- Defaults
- 1
- Typical loan rate
- 6.5%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7211
- Jobs supported
- 589
- 0.4 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Surestay charge-off rate by loan vintage
Top lenders financing Surestay franchisees
Showing 3 of 26 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.
What could kill this investment?
SBA loans charge off at 4.5% — 72% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Item 3 discloses 2 concluded cases involving SureStay directly (franchisee suits for wrongful termination, settled for $125,000 and $165,000) and numerous cases involving parent Best Western International, including franchisee/member counterclaims for wrongful termination and breach of contract, several state regulatory consent orders/settlements for unregistered franchise/membership offerings (California $500,000, Maryland $297,000 penalty, Virginia, Washington), and multiple 2025 fee-collection suits BWI initiated against terminated members.
Largest disclosed settlement: $500,000
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
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 365 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Governing law | Arizona |
| Litigation count | 27 |
View Item 3 litigation summary
Item 3 discloses 2 concluded cases involving SureStay directly (franchisee suits for wrongful termination, settled for $125,000 and $165,000) and numerous cases involving parent Best Western International, including franchisee/member counterclaims for wrongful termination and breach of contract, several state regulatory consent orders/settlements for unregistered franchise/membership offerings (California $500,000, Maryland $297,000 penalty, Virginia, Washington), and multiple 2025 fee-collection suits BWI initiated against terminated members.
Items 10, 11
Training & Operations
- Ongoing training
- Optional
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee (existing hotel conversion; franchisor does not select site)
- Franchisor financing
- Not offered
- Item 10
- POS system
- AutoClerk Atlas PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk Atlas PMS
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Surestay franchise?
The total investment to open a Surestay franchise ranges from $881K – $2.9M, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Surestay franchise owners earn?
Surestay 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 Surestay's franchise failure rate?
Based on SBA 7(a) loan data, Surestay has a charge-off rate of 4.5% across 58 loans, meaning 4.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Surestay franchise locations are there?
As of their most recent FDD filing, Surestay has 16 total units in the United States, including 16 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is Surestay a good franchise to buy?
FranchiseVerdict rates Surestay as a A-grade franchise with a verdict score of 59 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Surestay, you can request corrections or provide updated information.
Other Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.