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B61/100FDD 2026

SureStay Collection by Best Western — Litigation & Risk

Lodging - Hotels & Motels · FDD Items 3, 4 & 5

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Elevated Risk

27 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
27
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
61 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
107
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Arizona
State whose law governs disputes — relevant if you're not based there

What drove the 61/100 rating

Risk Score Breakdown

  1. 01HIGHGoing concern status is FALSE — indicates potential insolvency or financial distress at franchisor level
  2. 02HIGHExtensive litigation including trademark infringement and regulatory consent orders across multiple states suggests systemic compliance and legal exposure
  3. 03MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment on $880k–$2.9M investment
  4. 04MINORExplosive unit growth (220% YoY) from only 16 units is unsustainable and suggests aggressive recruitment masking underlying performance issues
  5. 05MINORNo territory protection exposes franchisees to direct competition from other SureStay Collection locations
  6. 06MED5% royalty on gross room revenue with undisclosed average earnings creates severe uncertainty on actual profit margins
  7. 07MINORBest Western franchise status disputes in Maryland, California, and Washington indicate regulatory risk and potential changes to operating model

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.