SureStay by Best WesternFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SureStay by Best Western franchise requires a total initial investment of $177K – $13.7M, including a $35K franchise fee and an ongoing 4.0% 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 70 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $177K – $13.7M
- 9th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 4.0%
- 2nd pct Lodging
- Units
- 218
- 41st pct Lodging
- SBA default
- 4.5%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchised units fell from 238 to 218 over 3 years. Investigate why operators are leaving.
27 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $177K – $13.7M including a $35K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 96/100. SBA loan charge-off rate of 4.5% across 70 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- SureStay, Inc.
- Parent company
- Best Western International, Inc.
- Incorporated in
- AZ
- HQ
- 6201 N. 24th Parkway, Phoenix, AZ 85016
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $520.9M
- vs $547.5M prior year
Overview
About
SureStay franchisees own and operate limited-service hotel properties under the Best Western brand umbrella, managing daily operations including front desk, housekeeping, maintenance, and marketing. Franchisees must maintain brand standards, pay 4% royalty on gross room revenue, and handle P&L responsibility for a capital-intensive, labor-dependent business with thin margins typical of budget hospitality.
- CEO
- Lawrence M. Cuculic
- Headquarters
- AZ
- Founded
- 2016
- FDD year
- 2026
- States available
- 41
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Renovation Work Extension Fee | $0 | $5K | |
| Renovation Work | $0 | $500K | |
| Furniture, Fixtures and Equipment (Including Telephone Systems) | $0 | $375K | |
| Inventory and Operating Equipment | $15K | $24K | |
| Signage | $10K | $50K | |
| Computer System | $4K | $44K | |
| Insurance | $8K | $14K | |
| Organizational Expense | $1K | $2K | |
| Permits and Licenses | $0 | $1K | |
| Miscellaneous Preopening and Project Management Expenses | $0 | $5K | |
| Green Key Global Certification | $675 | $675 | |
| Additional Funds (3 months) | $100K | $150K | |
| Franchise Application Fee | $3K | $3K | |
| Initial Fee | $35K | $35K | |
| Impact Study Fee | $0 | $4K | |
| Construction Work Extension Fee | $0 | $5K | |
| Pre-Activation Re-Inspection Fee | $0 | $3K | |
| Distribution Photography Package Fee | $1K | $8K | |
| Construction Work | $8.3M | — | |
| Total initial investment | $8.4M | $1.2M |
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
- $177K – $13.7M
- Better than avg vs category
- Liquid capital req'd
- $100K – $225K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $3 |
| Transfer fee | $35K |
| Inventory (initial) | $15K – $24K |
| Total fee load | 12.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How SureStay by Best Western Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 218
- Opened
- 23
- Last reporting year
- Closed
- 27
- Turnover rate
- 12.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.8%
- Net unit change last year
- 3-yr CAGR
- -8.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 8
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 70
- Loan volume
- $178.8M
- Median loan
- $2.6M
- average
- 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)
- N/A
- 5-yr charge-off
- 6.2%
- Loans approved 2021+
- Active lenders
- 26
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SureStay faces declining unit growth, undisclosed financials, documented litigation history, and high cash-flow obligations relative to hospitality margins—warranting caution and deep franchisee validation before investment.
Litigation (Item 3)
3 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code or any foreign bankruptcy code; (b) obtained a discharge of our, its, his, or her debts under the U.S. Bankruptcy Code or any foreign bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 96 / 100 rating
- 01MINORDeclining unit count (-1.8% YoY) indicates system contraction and potential franchisee attrition
- 02MEDNo Item 19 financial performance data disclosed—impossible to validate ROI claims or average unit economics
- 03HIGHHistory of litigation involving both SureStay and parent company Best Western regarding terminations, breach of contract, and membership disputes signals operational/legal instability
- 04MINORWide investment range ($176K–$13.6M) suggests highly variable unit profitability and unclear franchise viability across property types
- 05MINOR4% royalty on gross rooms revenue (not net profit) creates cash flow pressure for low-margin hospitality operations
- 06MINOR15-year term locks franchisees into relationship during period of hotel industry disruption (OTA competition, labor costs, supply chain volatility)
- 07MINORParent company's multiple collection proceedings and membership termination lawsuits indicate systemic friction with franchisees and business partners
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 27 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 8 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Offered
- Item 10
- POS system
- AutoClerk Atlas PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk Atlas PMS
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SureStay by Best Western · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SureStay by Best Western franchise?
The total investment to open a SureStay by Best Western franchise ranges from $177K – $13.7M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SureStay by Best Western franchise owners earn?
SureStay by Best Western 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 by Best Western's franchise failure rate?
Based on SBA 7(a) loan data, SureStay by Best Western has a charge-off rate of 4.5% across 70 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 by Best Western franchise locations are there?
As of their most recent FDD filing, SureStay by Best Western has 218 total units in the United States, including 238 franchised units and 0 company-owned units. 23 new units were opened in the latest reporting year.
Is SureStay by Best Western a good franchise to buy?
FranchiseVerdict rates SureStay by Best Western as a F-grade franchise with a risk score of 96 out of 100, 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
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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.