SureStay by Best Western
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.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 107 loans (below the industry average).
- 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
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 SureStay by Best Western unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
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.
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 · 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 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
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.
Score breakdown · what drove the 54 / 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
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SureStay by Best Western · FDD (2026) PDF