FDD Analysis 2025 FDD

Extended Stay America Select Suites Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Extended Stay America Select Suites's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Extended Stay America Select Suites FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$8,612,237 - $13,285,766
Franchise Fee$50,000

Investment Breakdown

Initial Franchise Fee (See Note 1)$50,000 - $50,000
Market and Feasibility Study (See Note 2)$5,000 - $10,000
Environmental Study (See Note 3)$1,900 - $3,000
Real Property (See Note 4)—
Permit, Tap, and Impact Fees—

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee5.5% of gross sales
Marketing/Advertising Fee10.1% of gross sales

Other Ongoing Fees

System Services4.5%
Project Management FeeVaries
Information Technology Vendor Certification FeeVaries
Liquidated damages for opening your Hotel before the Opening DateVaries
Property Improvement Plan (“PIP”) FeeVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue—
Disclosure Year2025
Reporting Units—
Revenue VarianceNot available

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

211

Total Units

+80

Net Growth (YoY)

+61.1%

Growth Rate

Franchised Units5
Company-Owned Units206

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Extended Stay America Select Suites Overview

Full franchise profile and details

Is Extended Stay America Select Suites Worth It?

Investment analysis and evaluation

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