Risk Score
Pending analysis
Investment Range
$7,529,900 - $12,904,400
Franchise Fee
$40,000
Total US Locations
32
Business Summary
stayAPT Suites operates extended-stay hotels that provide temporary housing on a weekly or monthly rental basis. These hotels offer fully furnished rooms with complete kitchens, separate bedrooms, cable television, and weekly housekeeping services, often at rates lower than conventional hotels. stayAPT Suites typically have between 59 and 111 rooms and include on-premises laundry facilities.
Corporate History
LG AS Franchisor LLC, known as stayAPT, was formed in October 2018. It operates by franchising extended-stay properties under two brands: stayAPT Suites and Affordable Suites of America. stayAPT acquired substantially all assets of its predecessor, Affordable Suites of America, Inc. (ASA Inc.), in January 2019. ASA Inc. had been franchising Affordable Suites of America hotels since 1998. stayAPT began offering Affordable Suites of America franchises in January 2019 and launched stayAPT Suites franchises in March 2020.
Financial Overview
Investment Range
$7,529,900 - $12,904,400
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$7,334,900
Equipment Costs (High)
$12,522,900
Working Capital
$157,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
stayAPT's financial condition raises questions about its ability to provide services and support to franchisees. The company anticipates future losses and payments under development incentive notes, requiring additional cash contributions. stayAPT's parent company has provided a letter of support, committing to provide necessary capital contributions through May 2026 to ensure stayAPT can meet its obligations.
Financing Details
stayAPT does not offer any direct or indirect financing to franchisees and does not guarantee any franchisee loans, mortgages, or other financial obligations. Franchisees must secure their own funding.
Performance Metrics
Total US Locations
32
Franchised Units
9
Corporate Units
23
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
stayAPT has no litigation required to be disclosed in this Item.
Bankruptcy History
stayAPT's Director of Franchise Operations, Adam Binder, filed for personal Chapter 7 bankruptcy in August 2017, which was discharged in November 2017, prior to his employment with stayAPT. No other bankruptcy information for stayAPT or its other executives is required to be disclosed.
Agreement Terms
Initial Term
20 years
Renewal Conditions
stayAPT Suites franchise agreements are not renewable. If a franchisee wishes to continue operating a hotel under the brand after the initial term expires, they must submit a relicense application. stayAPT will review this application based on its current standards for new franchisees. If approved, the franchisee must sign stayAPT's then-current franchise agreement, pay a relicense fee equal to the current Initial Franchise Fee, and may need to sign a general release. The new agreement could have significantly different terms.
Training & Support Program
Franchisor Assistance
stayAPT Suites offers franchisees pre-opening and ongoing assistance. Before opening, stayAPT assists with site approval, provides prototype building plans and specifications, lists of required fixtures, furnishings, and equipment, and conducts initial training for the franchisee and resident manager. They also offer up to 5 days of on-site opening assistance to help implement the Business System and evaluate initial operations. Ongoing support includes making the Business System available, providing updates to the Franchise Standards Manual, conducting periodic inspections, sponsoring franchisee meetings, consulting on technical operational matters like housekeeping and bookkeeping, and offering administrative services (for a fee), such as assistance with financing transactions. stayAPT also recommends room pricing and provides Property Improvement Reviews and Plans.
Initial Training Hours
42
Training Location
Matthews, North Carolina, or another designated location (could be franchisee's hotel or stayAPT headquarters).
Ongoing Support
After opening, stayAPT Suites provides ongoing assistance to franchisees by making the Business System available and furnishing updated materials for the Franchise Standards Manual. stayAPT conducts periodic inspections of hotels to ensure compliance with quality standards and sponsors regular meetings for all franchisees. Upon request, stayAPT consults on technical matters such as housekeeping, front office, maintenance, and bookkeeping. For a reasonable fee, stayAPT can also provide additional administrative services, including assistance with financing transactions. Furthermore, stayAPT recommends room pricing and offers Property Improvement Reviews and Plans upon request. Franchisees may also be required to attend additional training and national conferences.
Franchise Requirements
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
stayAPT Suites provides a protected territory for each hotel. This territory is typically defined by a 1-mile, 3-mile, or 5-mile radius around the franchisee's hotel, with the specific size depending on the population density of the area.
Staffing Notes
stayAPT Suites franchisees are required to designate a Resident Manager who will live at the hotel and directly oversee its day-to-day operations and staff. This Resident Manager, along with the franchisee's owners or a representative from an approved third-party management company, must successfully complete stayAPT's initial training program. Franchisees are also expected to maintain a sufficient number of adequately trained and competent personnel to ensure efficient guest service at the hotel.