Trend Hotels and Suites by My Place Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$272,500 - $2,947,000
Franchise Fee
$45,000
Business Summary
Trend Hotels and Suites by My Place is a franchise business that allows entrepreneurs to convert existing hotel properties into an upper-midscale and upscale hotel brand. Trend Hotels and Suites by My Place provides high-quality transient lodging services, targeting the traveling public and individuals needing extended lodging accommodations.
Corporate History
My Place Hotels of America, LLC (MPHOA) was organized as a South Dakota limited liability company on July 22, 2011, with no predecessors or parents. MPHOA operates several hotel and lodging franchise brands, including MY PLACE®, MY PLACE HOTELS®, and MY PLACE ECONOMY EXTENDED STAY®. The company has offered franchises for My Place Hotels since May 30, 2012, and as of December 31, 2023, had sold 112 My Place franchises. The Trend Hotels and Suites by My Place brand was developed by Ronald Rivett (who also developed the Super 8 Motel system) in collaboration with Ryan Rivett, MPHOA's current CEO and President. Although MPHOA began offering franchises for Trend Hotels on June 5, 2020, no Trend businesses had opened as of the FDD's issuance date.
Financial Overview
Investment Range
$272,500 - $2,947,000
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Royalty %
5%
Marketing %
2.5%
Equipment Costs (Low)
$91,000
Equipment Costs (High)
$2,497,000
Working Capital
$129,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
My Place Hotels of America, LLC, the franchisor for Trend Hotels and Suites by My Place, appears to be in a stable financial position. The company has reported positive net income, positive working capital, positive members' equity, and positive cash flow from operating activities for the fiscal years ending December 31, 2022, 2023, and 2024. The auditors issued an unqualified opinion on the financial statements, indicating that they present fairly in all material respects. There are no disclosed financial health concerns or going concern qualifications noted in the FDD.
Financing Details
Trend Hotels and Suites by My Place does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for arranging their own financing, and the franchisor does not guarantee any notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Trend Hotels and Suites by My Place has minimal legal history to report. In October 2019, the franchisor, My Place Hotels of America, LLC, entered into an Assurance of Discontinuance (AOD) with the Washington Attorney General to resolve an investigation. This AOD addressed a provision in the franchise agreement that restricted franchisees from hiring employees of other franchisees or the franchisor, a provision the Washington Attorney General asserted violated state law. My Place Hotels of America, LLC denied the violation but agreed to remove and not enforce the provision to avoid litigation. The King County Superior Court approved the AOD, closing the matter. This action was resolved outside the three-year lookback period for current litigation.
Bankruptcy History
Trend Hotels and Suites by My Place has no bankruptcy history required to be disclosed in its FDD. Neither the franchisor, My Place Hotels of America, LLC, its affiliates, its predecessor, officers, nor general partners have filed for bankruptcy or been subject to bankruptcy proceedings within the last 10 years.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Trend Hotels and Suites by My Place franchise agreement, franchisees must notify the franchisor in writing at least 180 days before the initial 10-year term expires. Franchisees must be in "Good Standing," meaning they have complied with all their obligations under the Franchise Agreement and System Standards. They must also adhere to the then-current System Standards and allow for a review and potential adjustment of their Protected Area at the franchisor's discretion. Additionally, franchisees will be required to pay a Renewal Fee equal to the then-current Application Fee and Initial Franchise Fee.
Training & Support Program
Franchisor Assistance
Before a Trend Hotels and Suites by My Place hotel opens, the franchisor assists by designating a Protected Area, conducting a Resource Evaluation and Guidance Program for initial training, providing general consultation and advice, and reviewing construction plans (to ensure compliance with System Standards, not for engineering or code adequacy). The franchisor also provides specifications for the use of its marks. Once the hotel is operational, Trend Hotels and Suites by My Place provides ongoing assistance by offering additional training as new services and methods develop, and general consultation on hotel operations. The franchisor may also consult with a Franchise Advisory Council, provide updates to manuals, protect its trademarks, inspect hotels for compliance, administer the Marketing and Advertising Fund for system-wide advertising, and maintain and upgrade the internet and e-commerce systems, including the property management and central reservation systems. The franchisor also works to establish supplier relationships and treats all similarly situated franchisees consistently. It also keeps franchisee's proprietary and confidential information secret.
Initial Training Hours
56
Training Location
Hybrid: Franchisee's hotel and Aberdeen, SD
Ongoing Support
After a Trend Hotels and Suites by My Place hotel opens, the franchisor provides continuous support through various means. This includes offering additional training when new services and methods are developed, and providing general consultation and advice on hotel operations. The franchisor may also consult with a Franchise Advisory Council regarding system-wide matters. Franchisees receive specifications for using trademarks and electronic copies of updated operation manuals. The franchisor protects its trademarks and inspects hotels periodically for compliance with standards. It administers the Marketing and Advertising Fund for system-wide promotions and maintains/upgrades the internet and e-commerce systems (like the property management and central reservation systems). The franchisor strives to establish relationships with approved suppliers and maintains confidentiality regarding franchisee's operational data.
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
Limited
Territory Size Requirements
Trend Hotels and Suites by My Place franchisees are granted a specific exclusive territory around their hotel, known as a Protected Area. The size and boundaries of this Protected Area depend on local market factors, including the population base, the number of businesses and other entities that could potentially use hotel services, the proximity to highways, and the potential for the System's future growth. Generally, Protected Areas are larger in smaller markets and rural areas, and smaller in urban areas with higher concentrations of population, businesses, and industries that generate demand for lodging services. The franchisor negotiates with the franchisee to determine a reasonable Protected Area, and this determination is final.
Staffing Notes
Trend Hotels and Suites by My Place requires its franchisees to designate a General Manager for their hotel. This General Manager must attend and successfully complete the franchisor's training programs, including the Resource Evaluation and Guidance Program and General Manager Training. The General Manager is also expected to demonstrate good moral character, and the franchisor may require retraining if performance does not meet System Standards. Additionally, Trend Hotels and Suites by My Place franchisees must ensure their staff is fully trained and proficient in using the guest loyalty system, property management system, and central reservation systems, and capable of honoring the terms of any discount or promotional programs offered by the franchisor.