SURESTAY HOTEL BY BEST WESTERN

Item 7 details a vast initial investment spectrum from $176,975 for conversions to $13,662,225 for ground-up builds, reflecting flexibility for franchisees eyeing existing properties versus new developments with 60-100 rooms standard. Upfront franchise fee hits $35,000, followed by 4% royalties on gross room revenue and another 4% into sales/marketing funds, plus fixed monthly tech fees of $444-$603 covering PMS, interfaces, and services. Absent Item 19 disclosure, would-be owners lack average unit volumes or profits, forcing reliance on broader system indicators like 218 operational hotels—a respectable tally for an eight-year-old brand.

System vitality shows promise with 22 projected new units amid 8 transfers, but red flags emerge from 12 terminations and 13 non-renewals, hinting at operational hurdles in a sector sensitive to economic swings. Litigation notes in Item 3 highlight disputes over wrongful terminations, breach claims, and right-of-first-refusal issues, underscoring contract enforcement tensions. Prospective buyers should probe Item 19 alternatives via public reviews, validate expansion velocity against competitors, and dissect fee structures against occupancy benchmarks to gauge true ROI potential.