SureStay Collection by Best WesternFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SureStay Collection by Best Western 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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $881K – $2.9M
- 24th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 16
- 20th pct Lodging
- SBA default
- N/A
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
27 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $881K – $2.9M including a $25K franchise fee, 5.0% 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 97/100.
- 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
Affiliated brands
- SureStay International
Other brands the franchisor or its parent operates (Item 1).
Overview
About
SureStay Collection franchisees operate limited-service hotel properties under the Best Western brand. Day-to-day operations include managing guest check-ins/check-outs, housekeeping, front-desk staff, maintenance, and local marketing—while remitting 5% of gross room revenue to the franchisor and adhering to brand standards. Franchisees bear full P&L responsibility for operating costs, staffing, and property management.
- CEO
- Lawrence M. Cuculic
- Headquarters
- AZ
- Founded
- 2016
- FDD year
- 2026
- States available
- 11
FDD Item 7 · 2026 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Feenot refundable | $4K | $4K | |
| Affiliation Feenot refundable | $25K | $25K | |
| Impact Study Fee | $0 | $4K | |
| Renovation Worknot refundable | $0 | $500K | |
| Furniture, Fixtures and Equipmentnot refundable | $0 | $1.3M | |
| Inventory and Operating Equipmentnot refundable | $75K | $150K | |
| Signagenot refundable | $10K | $30K | |
| Distribution Photography Package Feenot refundable | $2K | $8K | |
| Computer Systemnot refundable | $4K | $48K | |
| Insurancenot refundable | $9K | $14K | |
| Organizational Expensenot refundable | $1K | $2K | |
| Permits and Licensesnot refundable | $0 | $6K | |
| Miscellaneous Project Management Expensesnot refundable | $0 | $5K | |
| Green Key Global Certificationnot refundable | $675 | $675 | |
| Additional Funds (3 months)not refundable | $750K | $825K | |
| Total initial investment | $881K | $2.9M |
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
- $881K – $2.9M
- Better than avg vs category
- Liquid capital req'd
- $750K – $825K
- Near category avg vs category
- Franchise fee
- $8K – $25K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Rooms Revenue · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Technology fee | $3 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Inventory (initial) | $75K – $150K |
| Total fee load | 9.0% 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 Collection by Best Western Compares
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
- 20.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- 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 20 · 14 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 107
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
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
A financially distressed franchisor with minimal unit base, aggressive growth, extensive litigation, zero financial transparency, and unresolved regulatory status creates extreme investment risk.
Litigation (Item 3)
3 case reference(s): 1 pending, 5 settled.
Largest disclosed settlement: $15
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 97 / 100 rating
- 01HIGHGoing concern status is FALSE — indicates potential insolvency or financial distress at franchisor level
- 02HIGHExtensive litigation including trademark infringement and regulatory consent orders across multiple states suggests systemic compliance and legal exposure
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment on $880k–$2.9M investment
- 04MINORExplosive unit growth (220% YoY) from only 16 units is unsustainable and suggests aggressive recruitment masking underlying performance issues
- 05MINORNo territory protection exposes franchisees to direct competition from other SureStay Collection locations
- 06MED5% royalty on gross room revenue with undisclosed average earnings creates severe uncertainty on actual profit margins
- 07MINORBest Western franchise status disputes in Maryland, California, and Washington indicate regulatory risk and potential changes to operating model
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 |
| Protected territory | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Governing law | Arizona |
| Litigation count | 27 |
View Item 3 litigation summary
3 case reference(s): 1 pending, 5 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- POS system
- AutoClerk Atlas PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: AutoClerk Atlas PMS
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SureStay Collection by Best Western · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SureStay Collection by Best Western franchise?
The total investment to open a SureStay Collection by Best Western 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 Collection by Best Western franchise owners earn?
SureStay Collection 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 Collection by Best Western's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SureStay Collection by Best Western (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 SureStay Collection by Best Western franchise locations are there?
As of their most recent FDD filing, SureStay Collection by Best Western has 16 total units in the United States, including 0 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is SureStay Collection by Best Western a good franchise to buy?
FranchiseVerdict rates SureStay Collection by Best Western as a F-grade franchise with a risk score of 97 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.