How Much Does a MainStay Suites Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$8.7M – $15.8M
Franchise Fee
$50K
Royalty
6.0%
Ad Fund
2.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for MainStay Suites is $50K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a MainStay Suites franchise requires a total investment of $8.7M – $15.8M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Ongoing Costs
Beyond the initial investment, MainStay Suites franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 2.5% of gross sales. There is also a technology fee of $472.
What Can You Earn?
According to MainStay Suites's Item 19 financial performance representation:
Median gross sales: $2.1M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View MainStay Suites?
SBA Loans Issued
9
Default Rate
22.2%
The SBA (Small Business Administration) tracks loan performance for franchise brands. MainStay Suites has 9 SBA-backed loans on record. The default rate is 22.2%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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