Risk Score
Pending analysis
Investment Range
$11,226,600 - $13,659,150
Franchise Fee
$35,000
Total US Locations
4
Business Summary
LivAway Suites offers franchises for an upper economy extended-stay hotel that operates under the name LivAway Suites®. These hotels provide guest lodging services, featuring single king and double queen suites that average 340 square feet, each with a fully-equipped kitchen, free high-speed internet, and 50" smart TVs. Common areas include a lobby, fitness center, on-site guest laundry, enhanced vending, smart parcel lockers, and self-check-in kiosks.
Corporate History
LivAway Suites, LLC was organized in December 2022. Its founders and Chief Operating Officer have extensive experience in extended-stay hotels and hotel operations through an affiliate, West77 Partners, LLC, which has been involved in developing, owning, and managing hotels since 2013. The LivAway Suites brand was established in 2022 as a new upper economy extended-stay hotel concept. LivAway Suites began offering hotel franchises in July 2023 and currently solely focuses on offering hotel franchises and administering the franchise system. LivAway Suites itself has never directly owned and operated a hotel.
Financial Overview
Investment Range
$11,226,600 - $13,659,150
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$35,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$10,508,050
Equipment Costs (High)
$12,306,650
Working Capital
$250,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
LivAway Suites' financial condition, as reflected in its audited financial statements, raises questions about its ability to provide services and support to franchisees. As of December 31, 2024, LivAway Suites had total assets of $274,499 and members' equity of $145,484. The estimated initial investment for a LivAway Suites franchise (excluding real property) ranges from $11,226,600 to $13,659,150, which significantly exceeds the franchisor's members' equity. For the year ended December 31, 2024, LivAway Suites reported a net loss of $886,529 and negative cash flow from operating activities of $929,067.
Financing Details
LivAway Suites does not currently offer any direct or indirect financing options to its franchisees, nor does it guarantee any loans, leases, or other obligations. The franchisor notes that it may offer financing in the future.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
56,500
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
LivAway Suites has no litigation history to report in this document.
Bankruptcy History
LivAway Suites has no bankruptcy history to report in this document.
Agreement Terms
Initial Term
20 years
Renewal Term
5 years
Renewal Conditions
To renew, LivAway Suites franchisees must not be in default under their current agreement, provide timely notice of their intent to renew, and sign LivAway Suites' then-current form of franchise agreement and other related documents. They must also sign a general release of claims (subject to state law) and pay a renewal fee. If required by LivAway Suites, franchisees must also pay a Property Improvement Plan (PIP) fee and complete any necessary remodeling or upgrades to their hotel's furniture, fixtures, and equipment to meet current LivAway Suites standards, as outlined in a PIP. The new agreement may have terms and conditions that are substantially different from the original contract.
Training & Support Program
Franchisor Assistance
LivAway Suites provides various forms of assistance to its franchisees. Before opening, LivAway Suites provides access to its confidential Brand Standards Manual and an initial leadership training program for the hotel's general manager, along with position-specific training for other staff members. LivAway Suites also provides standards for required goods and services, approves proposed design and construction plans for the hotel, and reviews and approves management. During operation, LivAway Suites provides access to its designated Central Reservation System and Property Management System, offers consultation services for operations and marketing, and includes the hotel in its regional and national marketing programs. LivAway Suites also administers a quality assurance program, including inspections and guest satisfaction surveys, and offers periodic training programs. Franchisees are required to participate in LivAway Suites' call center program. Additionally, LivAway Suites may negotiate purchase agreements with suppliers for favorable pricing and hold periodic franchisee conferences.
Initial Training Hours
64
Training Location
Virtual (with some on-site training at the franchisee's hotel location)
Ongoing Support
LivAway Suites provides ongoing access to its Central Reservation System and Property Management System. Franchisees receive consultation and advice on operations, maintenance, and marketing. LivAway Suites includes hotels in its regional and national marketing programs and maintains a quality assurance program through periodic inspections and guest satisfaction surveys. There are ongoing virtual training programs, including annual certification for general managers and self-directed training for new staff. LivAway Suites also administers a call center program, in which franchisees must participate. Additionally, LivAway Suites may negotiate purchase agreements with suppliers and hold periodic franchisee conferences.
Franchise Requirements
Ideal Candidate Profile
LivAway Suites seeks franchisees who are either experienced multi-unit developers capable of committing to develop a minimum of 3 (and typically 4) hotels, or individual owners who are capable of managing the hotel themselves (subject to approval based on prior experience and proposed management structure) or willing to hire an approved professional hotel management company. While direct personal participation in onsite management is not strictly required, a strong management team or proven hotel management experience is essential.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
LivAway Suites defines its franchise territories based on the type of market where the hotel is located. For hotels within downtown city limits of major, densely-populated cities, the territory is a radius of ¼-mile to 1-mile from the hotel site. In other urban markets, the territory extends to a 1-mile to 3-mile radius. Suburban markets have a 3-mile to 4-mile radius, while rural markets are defined by a 5-mile radius from the hotel site.
Staffing Notes
LivAway Suites franchisees are solely responsible for managing their hotel's business. They must identify a qualified and experienced management company (or propose to self-manage) at least six months before construction is complete, subject to LivAway Suites' approval. The approved management company (or owner-manager) must be experienced, qualified, and adhere to LivAway Suites' obligations, including confidentiality and non-competition. The general manager of the hotel, and a 'next-level supervisor' if a third-party management company is used, must complete LivAway Suites' GM Training. Other staff members must also complete position-specific training. The general manager should be hired approximately six months before opening, with other employees hired about 30 days before opening.