Affordable Suites Of America Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$193,100 - $10,190,100
Franchise Fee
$35,000
Total US Locations
27
Business Summary
Affordable Suites of America™ hotels are extended-stay hotels that offer temporary housing on a weekly or monthly rental basis. These hotels provide fully furnished rooms with complete kitchens, separate bedrooms, cable television, and weekly housekeeping services. Each location also includes on-site laundry facilities. Affordable Suites of America™ hotels typically feature between 30 and 96 rooms, with many properties being conversions from existing hotels.
Corporate History
LG AS Franchisor LLC, also known as ASA, was formed in Delaware in October 2018. It acquired substantially all the assets of its predecessor, Affordable Suites of America, Inc. (ASA Inc.), in January 2019. ASA Inc. had been operating the Affordable Suites of America franchise system since 1998, initially under the name Affordable Efficiency Suites and later as Affordable Suites of America from March 2000. LG AS Franchisor LLC began offering Affordable Suites of America™ franchises in March 2019. The company also offers franchises for another extended-stay hotel brand, stayAPT® Suites, which it started offering in March 2020.
Financial Overview
Investment Range
$193,100 - $10,190,100
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$10,100
Equipment Costs (High)
$9,412,600
Working Capital
$87,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in its financial statements in Item 21, raises questions about Affordable Suites of America's ability to provide services and support to franchisees. Management anticipates that there may be future losses that will require additional cash contributions. To address this, the franchisor has secured a letter of support from the majority members of its parent company, LGAS Brand Parent LLC, ensuring cash contributions of up to $5 million through May 31, 2025, to help meet its financial obligations.
Financing Details
Affordable Suites of America does not offer any direct or indirect financing to franchisees. This includes not providing any guarantees for franchisee loans, mortgages, or other financial obligations. Franchisees are responsible for securing their own funding through third-party lenders.
Performance Metrics
Total US Locations
27
Franchised Units
15
Corporate Units
12
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Affordable Suites of America has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means the franchisor has no material litigation cases, either pending or concluded, to report.
Bankruptcy History
Affordable Suites of America has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. No bankruptcy is required to be disclosed for the franchisor, its affiliates, or key management personnel.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The Affordable Suites of America franchise agreement is not renewable. If a franchisee wishes to continue operating after their initial 20-year term expires, they must submit a relicense application. Affordable Suites of America will then review this application based on its current standards and requirements for new franchisees. If approved, the franchisee must sign a new franchise agreement, which may have materially different terms, and pay a relicense fee equivalent to the then-current Initial Franchise Fee. Franchisees will also be required to sign a general release of claims as a condition of relicense, subject to state law.
Training & Support Program
Franchisor Assistance
Before a new Affordable Suites of America hotel opens, the franchisor assists with site approval, provides prototype building plans and specifications, and furnishes a list of required fixtures, equipment, and initial inventory. Franchisees and their Resident Managers must complete an initial training program, typically lasting 3 to 5 days, covering operations, marketing, guest service, and quality control. Affordable Suites of America may also provide up to 5 days of on-site opening assistance. For ongoing support, the franchisor provides access to the Business System, updates to its confidential Operations Manual, and conducts periodic hotel inspections. The franchisor also sponsors meetings for franchisees, offers technical consultations on various operational matters (like housekeeping and bookkeeping), provides additional administrative services for a fee (including help with financing and agreements), recommends room pricing, and performs Property Improvement Reviews upon request.
Initial Training Hours
42
Training Location
Matthews, North Carolina, or another location we designate
Ongoing Support
Affordable Suites of America provides franchisees with ongoing access to its Business System, updated Operations Manuals, and periodic inspections to ensure compliance with brand standards. The franchisor also sponsors periodic meetings for all franchisees and, upon request, consults on technical matters like housekeeping, front office, maintenance, and bookkeeping. Additionally, Affordable Suites of America offers administrative services for a reasonable fee, including assistance with financing closings and agreement negotiations. The franchisor may also recommend room pricing and perform Property Improvement Reviews and Plans at the franchisee's request.
Franchise Requirements
Ideal Candidate Profile
Affordable Suites of America™ seeks qualified persons with strong financial and managerial capabilities to own and operate extended-stay hotels. While franchisees are not required to personally operate the hotel, they or their approved management company must demonstrate adequate experience, skills, or operational capacity and successfully complete ASA's training program. The franchise application probes for previous experience in hotel ownership, operation, or franchising, or new construction development, indicating these are preferred qualities. Franchisees should be capable of independently managing the business, including legal compliance and financial obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
Affordable Suites of America provides franchisees with a protected area that typically has either a 1-mile, 3-mile, or 5-mile radius, or greater, depending on the population density around the hotel.
Staffing Notes
Affordable Suites of America franchisees must employ or retain qualified management personnel as outlined in the Operations Manual. All Resident Managers or general managers must attend and successfully complete the franchisor's manager training program and be certified by Affordable Suites of America. The initial Resident Manager or general manager must complete training at least 60 days before the hotel opens. Any replacement Resident Manager or general manager must complete the full initial training within 90 days of employment. Other personnel must sign up for training within 14 days and complete field-based on-the-job training within 90 days of employment. Franchisees are also required to ensure employees wear standard uniforms or attire and comply with programs promoting the brand image. The hotel must also have a sufficient number of adequately trained and competent personnel on duty at all times.