Risk Score
Pending analysis
Investment Range
$168,375 - $13,652,095
Franchise Fee
$14,000
Min Cash Required
$100,000
Total US Locations
228
Business Summary
SureStay, Inc. operates a franchise system for hotels under the SureStay, SureStay Plus, and SureStay Studio brands, which are part of the Best Western family. These hotels cater to leisure and business travelers seeking lodging in the upper economy to lower midscale segments. SureStay by Best Western hotels provide a welcoming environment with clean rooms, free continental breakfast, and internet. SureStay Plus by Best Western offers upgraded standards with hot breakfast and stylish rooms. SureStay Studio by Best Western specializes in extended stays with thoughtfully designed studios.
Corporate History
SureStay, Inc. was formed in August 2016 as an Arizona corporation. It began offering hotel franchises under the SureStay by Best Western and SureStay Plus by Best Western marks in 2016, and introduced SureStay Studio by Best Western franchises in April 2020. Previously, the SureStay Collection by Best Western brand was offered under this document from 2016 until March 2024, but is now licensed under a separate disclosure document. SureStay, Inc. itself has never operated any System Hotels or other businesses. Its parent company, Best Western International, Inc., is an Arizona non-profit corporation formed in 1957. Best Western International, Inc. owns the SureStay marks and granted SureStay, Inc. a master license agreement in August 2016. In July 2019, Best Western International, Inc. acquired AutoClerk, Inc., which is now the exclusive provider of the SureStay system's property management system.
Financial Overview
Investment Range
$168,375 - $13,652,095
Franchise Fee (Low)
$14,000
Franchise Fee (High)
$25,000
Minimum Cash Required
$100,000
Royalty %
4%
Marketing %
4%
Equipment Costs (Low)
$16,225
Equipment Costs (High)
$13,291,095
Working Capital
$162,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SureStay, Inc.'s parent company, Best Western International, Inc., appears financially healthy. Its audited consolidated financial statements received an unqualified opinion from independent auditors, indicating that they present fairly, in all material respects, the financial position and results of operations. The company reported significant net assets of $299,727 thousand in 2024, showing growth from $231,837 thousand in 2023. It also demonstrates positive financial performance with an excess of revenues over expenses of $65,117 thousand in 2024 and $89,020 thousand in 2023. No 'going concern' issues, which would raise substantial doubt about the company's ability to continue operations, were identified by the auditors.
Financing Details
SureStay, Inc. does not provide any direct or indirect financing options to its franchisees. Additionally, SureStay, Inc. and its affiliates will not guarantee any franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding from third-party sources.
Performance Metrics
Total US Locations
228
Franchised Units
228
Corporate Units
0
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
22
Litigation Summary
SureStay, Inc. has been involved in several litigation cases. Two concluded cases against SureStay, Inc. include Royal Hospitality Group, Inc. v. SureStay, Inc., which alleged wrongful termination and was settled for $125,000, and Ma-Krupa v. SureStay, Inc., concerning a right of first refusal, settled for $165,000 plus forgiveness of a $38,500 balance. The parent company, Best Western International, Inc., has a more extensive legal history. Recently, Best Western International, Inc. settled three cases related to unpaid fees and counterclaims for issues like breach of implied covenant of good faith and fair dealing, fraud, and negligent misrepresentation, with settlements ranging from $25,000 to $223,000 paid to Best Western International, Inc. Historically, Best Western International, Inc. has also faced state actions where its memberships were deemed franchises, leading to consent orders and penalties in states such as North Dakota (1984), California (1988, 2019), Maryland (2018), Washington (2019), and Virginia (2020), without admitting or denying wrongdoing. As of the FDD issuance date, Best Western International, Inc. has three ongoing actions to collect unpaid fees or for trademark infringement.
Bankruptcy History
SureStay, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
The SureStay, Inc. Franchise Agreement automatically renews for successive 10-year terms. Franchisees do not need to take specific actions to initiate renewal. Renewal occurs automatically unless either SureStay, Inc. or the franchisee provides written notice of their intent not to renew at least 12 months before the end of the then-current term.
Training & Support Program
Franchisor Assistance
SureStay, Inc. provides comprehensive assistance to franchisees. Before a hotel opens, SureStay, Inc. (or an affiliate) makes the confidential Manual available, reviews and approves designs and plans for construction or renovation, furnishes a reservation service, and approves preventative maintenance and deep clean programs. They also specify initial and ongoing training and help arrange purchases or leases for items like exterior signs, operating equipment, and furnishings. Once the hotel is operating, SureStay, Inc. continuously markets the hotel through its reservation service and loyalty programs, ensuring continued access to these systems. Franchisees can also receive consultation and advice on operations, facilities, and marketing, though some services may incur additional fees. The franchisor maintains a quality assurance program, conducting periodic, unannounced inspections and audits at least once every 12 months. Additionally, SureStay, Inc. offers online refresher courses at no cost, covering various operational aspects such as customer service, housekeeping, maintenance, front desk services, and revenue management.
Initial Training Hours
40
Training Location
The Hotel or another location we designate
Ongoing Support
SureStay, Inc. provides ongoing support to franchisees after their hotels open. This includes commercially reasonable efforts to market the hotels on SureStay's reservation service and any associated loyalty programs, and continuous access to the reservation service. SureStay, Inc. offers consultation services and advice in areas like operations, facilities, and marketing, for which fees may be established on a project-by-project basis. The franchisor also administers a quality assurance program, conducting periodic, unannounced inspections and audits at least once every 12 months. Additionally, SureStay, Inc. offers free online refresher courses covering customer service, housekeeping, maintenance, front desk services, regional services, revenue management, proprietary revenue management systems, and operational consultative training.
Franchise Requirements
Ideal Candidate Profile
SureStay, Inc. requires franchisees to maintain direct management control over their hotel's business. This responsibility can be fulfilled by providing either qualified and experienced third-party management or a full-time, dedicated, on-premises general manager. Therefore, the ideal candidate, whether an individual owner or the management they appoint, must possess strong managerial capabilities and ensure the hotel operates in compliance with SureStay's standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
SureStay, Inc. defines the territory for a franchisee as a Restricted Area with a radius of at least 0.25 miles around the front entrance of the franchisee's hotel. Within this specific radius, SureStay, Inc. or its affiliates will not open another hotel under the same brand as the franchisee's hotel. However, this protection has exceptions, as it does not apply to existing hotels, hotels under different brands (even those owned by SureStay, Inc. or its affiliates), or hotels acquired as part of a chain or group of four or more properties.
Staffing Notes
SureStay, Inc. requires franchisees to maintain direct management control of their hotel. This responsibility can be met either by using a qualified and experienced third-party management company or by employing a full-time, dedicated, on-premises general manager. Before the hotel opens, the general manager, any sales manager, and all front desk, housekeeping, and maintenance personnel must successfully complete SureStay's initial training program.