Extended Stay America
Company Information
13024 Ballantyne Corporate Place, Suite 1000 Charlotte, NC 28277
We are a Delaware limited liability company formed on September 16, 2010. For purposes of this Disclosure Document, we do business under the name EXTENDED STAY AMERICA. Our principal business address is 11525 N. Community House Rd., Suite 100, Charlotte, North Carolina 28277 USA. Our telephone number is (844) 542 4148. We offered franchises for EXTENDED STAY AMERICA hotels from August 1, 2017 through March 2021. In March 2021 this mark was modified, and we began offering franchises under only the modified mark EXTENDED STAY AMERICA SUITES™. We also began offering franchises for the EXTENDED STAY AMERICA PREMIER SUITES™ brand in March 2021. This brand features upgraded amenities and targets higher rated extended stay guest segments. We have never owned or operated EXTENDED STAY AMERICA SUITES™ hotels or other businesses of the type being franchised. Those businesses are operated by our affiliates as described below.
Not Available
1 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
4/10
Earning Transparency
1/10
Investment Accessibility
7/10
Franchise System Development
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Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $40,000 Maximum: $40,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $8,498,910 Maximum: $11,097,646
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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