SureStay Collection Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$880,000 - $2,917,495
Franchise Fee
$15,000
Min Cash Required
$750,000
Total US Locations
4
Business Summary
SureStay, Inc. offers the right to convert existing hotels to operate under the "SureStay Collection by Best Western" brand. SureStay Collection by Best Western hotels are a global collection of lower-midscale and upper-economy hotels that can range from full-service hotels with meeting facilities to smaller, uniquely designed select-service hotels. These hotels utilize the "SureStay Collection by Best Western" and "Best Western Rewards" names and are included on SureStay, Inc.'s reservations systems. The primary customer for a SureStay Collection by Best Western hotel is typically a leisure or business traveler looking for a unique or historic hotel experience.
Corporate History
SureStay, Inc. was formed as an Arizona corporation in August 2016. It operates under its entity name and various "SureStay" brand names, including "SureStay Collection by Best Western". The company offered hotel franchises using the "SureStay Collection by Best Western" mark under a separate disclosure document from 2016 until March 2024, when it began offering licenses for this brand under the current Franchise Disclosure Document. SureStay, Inc. has also offered hotel franchises for "SureStay by Best Western" and "SureStay Plus by Best Western" since 2016, and "SureStay Studio by Best Western" since April 2020. SureStay, Inc. has never operated a System Hotel or any other type of business directly. Its parent company, Best Western International, Inc., an Arizona nonprofit corporation formed in 1957, is the owner of the Licensed Marks and granted SureStay, Inc. a master license agreement to use and sublicense these marks worldwide since August 2016.
Financial Overview
Investment Range
$880,000 - $2,917,495
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$25,000
Minimum Cash Required
$750,000
Royalty %
5%
Marketing %
5%
Equipment Costs (Low)
$90,100
Equipment Costs (High)
$2,027,995
Working Capital
$787,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SureStay, Inc.'s parent company, Best Western International, Inc., demonstrates a financially healthy position with growing total assets and net assets. The company maintains a positive working capital, with $56.9 million in 2024 and $52.3 million in 2023, indicating sufficient liquidity to cover its short-term obligations. The independent auditors have issued an unqualified opinion on the financial statements for the years ended November 30, 2024, and November 30, 2023, and no concerns regarding the company's ability to continue as a going concern were noted.
Financing Details
SureStay, Inc. does not offer any direct or indirect financing to its franchisees. Neither SureStay, Inc. nor its affiliates will guarantee any notes, leases, or other obligations for franchisees. Franchisees are solely responsible for securing their own financing through external sources.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
22
Litigation Summary
SureStay, Inc. has a history of litigation, with 22 cases disclosed in Item 3. SureStay, Inc. itself was involved in two concluded actions; one in 2019 for wrongful termination of a Franchise Agreement, settled in 2022 for $125,000, and another in 2020 alleging violation of a right of first refusal, settled in 2021 for $165,000 plus account forgiveness. SureStay, Inc.'s parent company, Best Western International, Inc., has an extensive litigation history, primarily related to collecting unpaid fees and trademark infringement from former members or franchisees. Many of these cases resulted in confidential settlements with payments ranging from $25,000 to $250,000. Historically, Best Western International, Inc. also faced several state actions from 1984 to 2020 (including North Dakota, California, Maryland, Washington, and Virginia) alleging that its membership agreements constituted franchises, leading to various consent orders, payments of fees, and penalties. Additionally, Best Western International, Inc. initiated three actions during its last fiscal year (ending November 30, 2024) to collect unpaid fees and for trademark infringement, filed in June 2023, March 2024, and April 2024, all of which are currently ongoing. Overall, SureStay, Inc. and its parent have faced and initiated various legal disputes, predominantly concerning contract breaches, unpaid fees, and compliance with franchise regulations.
Bankruptcy History
SureStay, Inc. has no bankruptcy history to report, as no bankruptcy proceedings are required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
SureStay, Inc. automatically renews the Distribution Agreement for successive 10-year terms. To prevent renewal, either party must provide written notice of its intent not to renew at least six months before the current term ends. SureStay, Inc. franchisees are not required to sign a new Distribution Agreement upon renewal.
Training & Support Program
Franchisor Assistance
Before opening, SureStay, Inc. (or its parent/affiliate) provides a reservation service and access to a list of suppliers for furniture, fixtures, equipment, and opening inventory. Franchisees also have the opportunity to use SureStay, Inc.'s Studio Design Services for design and aesthetics. During operation, SureStay, Inc. uses commercially reasonable efforts to market the SureStay Collection by Best Western hotel on its reservation service and display relevant hotel information. It continues to provide access to the reservation service and offers sales and revenue management services. Franchisees can participate in the Best Western Rewards (BWR) and Gift Card programs. SureStay, Inc. assesses the SureStay Collection by Best Western hotel at least once every 12 months for quality and condition. It also maintains information security procedures for guest data from the reservation service. Digital marketing consultant services are provided, including a primary contact for digital channels, monitoring hotel content optimization, social media, and BWR support. Franchisees also get access to BWH online education and training resources, including a learning management system. For a fee, franchisees can access guest satisfaction surveys through a GSS feedback program.
Ongoing Support
SureStay, Inc. provides ongoing support by using commercially reasonable efforts to market the SureStay Collection by Best Western hotel on its reservation service and display relevant hotel information. It continues to furnish access to the reservation service and provides sales and revenue management services. SureStay Collection by Best Western hotel owners can participate in the Best Western Rewards (BWR) and Gift Card programs. The company assesses the SureStay Collection by Best Western hotel at least once every 12 months to ensure the quality of the guest experience and the condition of the hotel. It also maintains information security procedures and controls for guest data delivered through the reservation service. Digital marketing consultant services are provided, which include serving as the primary contact for digital marketing channels, monitoring/maintaining optimization of hotel content, social media, and Best Western Rewards support. SureStay Collection by Best Western hotel owners also have access to BWH online education and training resources, including BWH's learning management system, which offers online learning opportunities for continuing education. For a monthly fee, franchisees also have access to guest satisfaction surveys through a GSS feedback program.
Franchise Requirements
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Staffing Notes
SureStay, Inc. requires that SureStay Collection by Best Western hotel owners always maintain and exercise management control over their hotel business. This responsibility can be met by providing qualified and experienced management, which can be either a management company or a full-time, dedicated, on-premises General Manager. The General Manager is not required to have an equity interest in the property or the hotel owner entity. Franchisees must also adopt procedures established by SureStay, Inc. to prevent unauthorized disclosure of the company's proprietary information by employees, agents, and independent contractors, including through the use of non-disclosure and non-competition clauses in their agreements.