Risk Score
Pending analysis
Investment Range
$5,677,950 - $6,951,450
Franchise Fee
$40,000
Total US Locations
70
Business Summary
My Place Hotels of America franchises businesses that provide transient lodging, or hotel services, to the public. My Place Hotels are typically three or four-story buildings with 64 to 85 rooms, designed for new construction. Each hotel includes a "My Store" for convenient purchases and guest laundry facilities, adapting to the specific needs of its local community.
Corporate History
My Place Hotels of America was organized as a South Dakota limited liability company on July 22, 2011. The company began offering My Place Hotel franchises on May 30, 2012. The concept for My Place Hotels was developed by Ronald Rivett and Ryan Rivett, with Ryan Rivett personally involved in hotel development since 2008. My Place Hotels of America also operates a similar lodging franchise business under the name Trend Hotels and Suites by My Place, which has been offered since June 2020.
Financial Overview
Investment Range
$5,677,950 - $6,951,450
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Royalty %
4.75%
Marketing %
2.75%
Equipment Costs (Low)
$5,370,000
Equipment Costs (High)
$6,460,000
Working Capital
$172,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
My Place Hotels of America's financial statements show positive members' equity and healthy working capital as of December 31, 2023. However, a special risk highlighted by the franchisor states that its financial condition, as reflected in its financial statements, calls into question My Place Hotels of America's financial ability to provide services and support to franchisees. Net income in 2023 was significantly lower compared to the previous two years, and cash and cash equivalents also decreased in 2023.
Financing Details
My Place Hotels of America does not offer any direct or indirect financing to franchisees. My Place Hotels of America also does not guarantee any of the franchisee's notes, leases, or other financial obligations, meaning franchisees must secure their own funding.
Performance Metrics
Total US Locations
70
Franchised Units
49
Corporate Units
21
Avg Square Footage
30,000
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
My Place Hotels of America has one recent litigation case filed on December 7, 2023, before the American Arbitration Association in Aberdeen, South Dakota. The franchisor is seeking past due amounts, liquidated damages for premature closure, and damages for unlawful use of My Place Hotels of America's trademarks from a franchisee named Hub City Hotel, LLC.
Bankruptcy History
My Place Hotels of America has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their franchise agreement, My Place Hotels of America franchisees must provide written notice of their intent to renew between 180 and 360 days before the current term ends. They must be in good standing, having complied with all obligations and cured any defaults. Franchisees also need to have successfully completed all training for services and products introduced or modified after their initial agreement. They are required to sign My Place Hotels of America's then-current standard Franchise Agreement and must renovate and upgrade their hotel facility and premises to meet the current System Standards at the time of renewal.
Training & Support Program
Franchisor Assistance
My Place Hotels of America provides several types of assistance to its franchisees. Before opening, My Place Hotels of America designates a protected area, offers initial training for the general manager at My Place University in Aberdeen, South Dakota, along with on-site assistance at the franchisee's hotel or another selected My Place hotel. My Place Hotels of America also provides general consultation and advice, reviews construction plans, and offers specifications for the use of its marks. Ongoing support includes additional training for new services and methods, continued general consultation, collaboration with a Franchise Advisory Council, providing electronic manuals, protecting trademarks, and inspecting hotels to ensure compliance. My Place Hotels of America administers a Marketing and Reservation Fund, maintains and upgrades internet and e-commerce technology, strives to establish vendor relationships, and ensures consistent application of system standards.
Initial Training Hours
108
Training Location
My Place University in Aberdeen, South Dakota and on-site at the franchisee's hotel or another selected My Place hotel
Ongoing Support
After opening, My Place Hotels of America franchisees receive ongoing assistance including additional training as new services and methods are developed, general consultation and advice on hotel operations, and consultation with the Franchise Advisory Council regarding system-wide matters. My Place Hotels of America provides specifications for using its marks and lists of approved suppliers. Franchisees get electronic copies of manuals, protection for the brand's marks, and regular inspections to ensure compliance with standards. My Place Hotels of America also administers the Marketing and Reservation Fund, strives to maintain and upgrade technology systems, establishes vendor relationships, and keeps franchisee operational data confidential.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staffing Notes
My Place Hotels of America requires franchisees to designate a General Manager for their hotel, who must attend and successfully complete the Initial Training Program. The General Manager must demonstrate good moral character, and may be required to attend retraining if their performance does not meet System Standards. Franchisees must also ensure their staff is fully trained to use My Place Hotels of America's property management, central reservation, and guest loyalty systems.