GrandStay Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$117,900 - $24,175,200
Total US Locations
30
Business Summary
GrandStay Hospitality, LLC offers franchises for three types of hotel properties: GrandStay Residential Suites Hotels, GrandStay conference centers, and GrandStay Hotel & Suites properties. GrandStay Residential Suites Hotels specialize in extended-stay accommodations with studios and one or two-bedroom suites that feature separate living and sleeping areas with fully equipped kitchens. GrandStay conference centers include a full conference center attached to the property and offer various room choices, including both short-term and extended-stay suites. GrandStay Hotel & Suites properties provide a wide variety of guest rooms, also including extended-stay suites with full kitchens. GrandStay properties operate in developed markets and compete with local, regional, and national hotels, motels, and extended-stay lodging facilities.
Corporate History
GrandStay Hospitality, LLC was formed as a Minnesota limited liability company on September 5, 2000. GrandStay Hospitality, LLC began offering franchises in November 2000. The company does business under its corporate name and as "GrandStay® Hotels." GrandStay Hospitality, LLC has not operated its own GrandStay properties. The brand previously offered a "Crossings by GrandStay" property franchise but discontinued that offering in 2018. GrandStay Hospitality, LLC's primary focus is on franchising three distinct hotel property types: GrandStay Residential Suites Hotels, GrandStay conference centers, and GrandStay Hotel & Suites properties.
Financial Overview
Investment Range
$117,900 - $24,175,200
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$62,000
Equipment Costs (High)
$22,750,000
Working Capital
$195,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
GrandStay Hospitality, LLC's financial statements show healthy performance with increasing net income and members' equity for the fiscal years ended December 31, 2024, and 2023. The company's cash balance also significantly increased during 2024. The independent auditors provided an unqualified opinion, indicating the financial statements present fairly the company's financial position. However, GrandStay Hospitality, LLC is involved in ongoing litigation concerning a $1,000,000 earnest money payment, which represents a potential loss for the company. Additionally, GrandStay Hospitality, LLC holds significant cash balances that exceed FDIC insured limits.
Financing Details
GrandStay Hospitality, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
30
Franchised Units
30
Corporate Units
0
Franchising Since
2000
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
GrandStay Hospitality, LLC has no litigation to report. The company has not been involved in any material litigation or bankruptcy proceedings that are required to be disclosed in this FDD.
Bankruptcy History
GrandStay Hospitality, LLC has no bankruptcy history to report for the company or its key personnel. No bankruptcies are required to be disclosed in this FDD.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their franchise, GrandStay Hospitality, LLC franchisees must provide 180 days' written notice before their agreement ends. They must have complied with all material terms and conditions of their current Franchise Agreement and timely paid all monetary obligations to GrandStay Hospitality, LLC. Franchisees must also agree in writing to remodel, modernize, and redecorate their Franchised Location, and to replace and modernize signs, furniture, fixtures, supplies, and equipment to reflect GrandStay Hospitality, LLC's then-current image and specifications. They must possess the right to lease or own the Franchised Location for a 20-year term. Both the franchisee and their General Manager must complete any required retraining designated by GrandStay Hospitality, LLC. Finally, franchisees must pay a reacquisition fee and sign GrandStay Hospitality, LLC's then-current standard franchise agreement and any other required agreements, which may have materially different terms than their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, GrandStay Hospitality, LLC assists with approving the proposed site, providing floor plans, layouts, and standard sign plans and specifications. GrandStay Hospitality, LLC also loans copies of its manuals and provides a schedule of required products/services, along with a list of approved suppliers. Franchisees receive an Initial Training Program for themselves and their General Manager. GrandStay Hospitality, LLC also provides an Opening Supervisor for up to 3 days to assist with purchasing, accounting procedures, implementing the Business System, and evaluating initial business operations. During operation, GrandStay Hospitality, LLC maintains a reservation system and the GrandStay System Brand Fund for general brand promotion. GrandStay Hospitality, LLC periodically visits and reviews properties, providing written reports if appropriate, and offers advisory services by telephone or in writing. GrandStay Hospitality, LLC also furnishes manual supplements and modifications, provides updates on approved suppliers, offers marketing and advertising recommendations, and grants access to the GrandStay website.
Initial Training Hours
112
Training Location
Virtual, GrandStay Corporate Headquarters in White Bear Lake, Minnesota, or another designated location
Ongoing Support
After opening, GrandStay Hospitality, LLC provides ongoing support to its franchisees by maintaining and administering the GrandStay System Brand Fund and a reservation system for all properties. GrandStay Hospitality, LLC conducts periodic visits and reviews of properties, providing written reports when appropriate. They also offer advisory services by telephone or in writing and furnish supplements and modifications to their operating manuals. Additionally, GrandStay Hospitality, LLC provides updates on approved suppliers and offers marketing and advertising recommendations. Franchisees also receive access to and use of the GrandStay website. GrandStay Hospitality, LLC may hold webinars or other training sessions and requires attendance at conventions, which may incur fees.
Franchise Requirements
Ideal Candidate Profile
GrandStay Hospitality, LLC seeks franchisees who ideally have experience in the lodging industry. They recommend that the franchisee or, if an entity, its President, actively participate in the GrandStay property's operations, preferably full-time. If the franchisee does not operate the property directly, they must employ a GrandStay Hospitality, LLC-approved management company and a General Manager. This General Manager must successfully complete the GrandStay Hospitality, LLC training program and be certified by the franchisor. GrandStay Hospitality, LLC also considers the prospect's creditworthiness when evaluating candidates.
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
Limited
Territory Size Requirements
GrandStay Hospitality, LLC does not generally grant territories. However, in limited circumstances where a Protected Area might be negotiated, its minimum size would be a one-half mile radius around the hotel. Even in such a protected area, GrandStay Hospitality, LLC retains rights to develop other hotel concepts under different brand names, develop GrandStay properties at international airports or major theme parks, market products via various channels, acquire businesses with locations in the area, and sell its equity or assets to third parties.
Staffing Notes
GrandStay Hospitality, LLC franchisees are solely responsible for hiring all employees for their GrandStay property, including setting their employment terms and compensation. Franchisees must implement their own employee training programs and always maintain a trained staff sufficient to operate the property according to GrandStay Hospitality, LLC standards. GrandStay Hospitality, LLC requires franchisees to employ a General Manager who successfully completes the GrandStay Hospitality, LLC training program and is certified by the franchisor. If a new General Manager is hired, they must attend a 2-day orientation before starting work and complete the full training program within 90 days. GrandStay Hospitality, LLC does not hire or directly train franchisee employees, other than the General Manager. Franchisees must ensure their personnel develop good customer relations and provide competent, courteous, and knowledgeable service.