About LG AS Franchisor- Affordable Suites of America Franchise
Affordable Suites of America is an extended stay hotel franchise offering temporary housing on a daily and weekly basis at rates generally below those of traditional hotels.
The brand targets budget conscious travelers, relocating families, and professionals on temporary work assignments who need comfortable, affordable accommodations for longer stays.
The franchise fee is $35,000, and the brand has been franchising since 2019 under its parent company, LGAS Brand Parent LLC.
LG AS Franchisor- Affordable Suites of America Franchise Cost & Fees
Minimum Investment
$193K
Average Investment
$979K
Maximum Investment
$1.8M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | Greater of $2,500 per month or 5% of your Gross Room Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of your Gross Room Revenues per month. Currently 1% of your Gross Room Revenues per month. | National brand fund |
| Total Investment Range | $193,100 – $1,765,100 | Includes build-out, inventory, working capital |
The investment range of $193K–$1.8M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Greater of $2,500 per month or 5% of your Gross Room Revenues) and marketing fee (Up to 2% of your Gross Room Revenues per month. Currently 1% of your Gross Room Revenues per month.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee For One Hotel | $35,000 | $35,000 |
| Property Improvements | $0 | $1,500,000 |
| Signs | $20,000 | $22,000 |
| Insurance Costs | $45,000 | $60,000 |
| Opening Inventory | $0 | $22,500 |
| Property Management System | $10,100 | $15,100 |
| Initial Training | $5,000 | $7,500 |
| Pre-Opening Marketing and Advertising | $3,000 | $3,000 |
| Additional Funds (3 Months) | $75,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 or expenses if higher (Franchise Agreement) or then-current Initial Franchise Fee for certain transfers |
| Renewal Fee | Not renewable, relicense fee equal to then-current Initial Franchise Fee |
| Technology Fee | Internet, Email and Website: $175 to $350 per month (plus $1,500 initial setup and $250/year hosting). CoStar Subscription / STR Reports: $550 to $1,900 per hotel per year. Voice-of-Guest Program: $1,500 per hotel per year (plus $150 one-time setup). |
| Audit Fee | Will vary under the circumstances (reimbursement for costs if audit is due to franchisee's failure to report or understatement of revenues >2%) |
| Independent Marketing Project Fee | Pro rata portion of incurred cost per marketing project. |
| Initial Training for New Owner or New Resident Manager | $2,500 per person |
| Additional Training Fee | Will vary under the circumstances |
| National Meetings; Regional Seminars | The then-current meeting/seminar fee |
| Supplier/Product Testing Fee | Current fee, or costs if higher. Current fee is $2,500. |
| Interest Expenses | Will vary under the circumstances (up to 18%) |
| Property Improvement Plan Re-inspection Fee | $2,500 |
| Relicense/Change of Ownership Fee | The then-current Initial Franchise Fee |
| Reservation Fee | The then-current reservation fee and the cost of installing such reservation system |
| Voice-of-Guest Program | Approximately $1,500 per hotel, per year |
| Administrative Assistance Fee | A reasonable fee and ASA’s costs incurred in connection with the services. |
| Tax Reimbursement Fee | Will vary under the circumstances |
| Insurance Procurement Fee | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
| De-Identification Fee | Will vary under the circumstances |
| Temporary Management Fee | Will vary under the circumstances |
| Enforcement Fee | Will vary under the circumstances |
| Liquidated Damages | Average monthly Royalty Fees times the lesser of 36 months or the number of months remaining under the Franchise Agreement; $65,000 (Termination prior to opening); An amount equal to 2 times the annual salary of the employee involved plus all costs and attorneys’ fees (Non-Solicitation) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 to 5 days |
| Classroom Training | 23 |
| On-the-Job Training | 19 |
| Training Location | Franchisee's Hotel, ASA’s headquarters, or other designated locations |
| Additional Training | Franchisor may require franchisee, owners, or Resident Manager to attend additional training during the term of the agreement. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area |
| Exclusive Territory | No |
| Territory Size | 1-mile, 3-mile, or 5-mile radius, or greater depending on population density |
| Description | Franchisee is granted the right to operate one Hotel at a defined location. ASA will not establish a company-owned or franchised Affordable Suites of America™ business within a certain radius around the hotel without franchisee's permission. However, rights are not exclusive, and franchisee may face competition from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by ASA. ASA reserves the right to establish franchised or company-owned hotels or offer products/services under other trademarks (e.g., stayAPT brand) within and outside the Protected Area without compensation to the franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | Not renewable |
| Renewal Fee | Relicense fee equal to the then-current Initial Franchise Fee |
| Renewal Conditions | If franchisee wishes to remain, they must file a relicense application, be approved based on current standards, sign a new franchise agreement, pay the relicense fee, and sign a general release (subject to state law). |
| Transfer Fee | $10,000 or actual expenses if higher for certain transfers; then-current Initial Franchise Fee for other transfers |
| Transfer Conditions | All monetary obligations paid, no default, transferee meets franchisor's standards, transferee executes current franchise agreement and ancillary agreements (including Personal Guaranty), transferee and Resident Manager complete training and pay fees, hotel upgraded to current standards, transferee has acceptable real estate interest, franchisee and principal owner sign general release (subject to state law), franchisor approves material provisions of transfer, transfer terms do not negatively impact business profits, franchisee remains liable for pre-transfer obligations. |
| Termination for Cause | Franchisor may terminate immediately for: conduct reflecting unfavorably on the brand, misuse of confidential information, falsifying reports, insolvency/bankruptcy (with conditions), foreclosure not dismissed in 30 days, conviction of certain crimes, abandonment of business, unauthorized transfer, incurable breach, or 3 defaults in 12 months. Franchisor may terminate with 30 days' notice (10 days for non-payment) for curable defaults not cured within the notice period, including failure to obtain site approval, commence construction within 12 months, open within 24 months, open without permission, fail to conform to business system standards, or fail to pay obligations. |
| Non-Compete Period | During the term of the franchise |
| Non-Compete Details | During the term of the Franchise Agreement, franchisee may not employ or solicit any person who was employed in a management position by Franchisor or any other Brand Hotel franchisee (except affiliates) within the immediate past 6 months. Post-termination non-compete covenants are not applicable. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | ASA does not require personal operation. Franchisee may operate the hotel or retain an approved professional management company. Any individual owner, principal owner, management company, and Resident Manager must complete ASA’s training program. The management company and Resident Manager need not have an ownership interest in the franchisee entity but may be required to sign confidentiality and non-solicitation agreements. |
| Required Suppliers | Franchisee must purchase all products, supplies, uniforms, signs, equipment, computer hardware and software, fixtures, furnishings, stationery, and advertising, marketing and sales promotion materials for which ASA has specifications and/or standards from suppliers approved by ASA in writing. |
| Supply Restrictions | ASA is not currently, but may be a supplier of Approved Products. Affiliate LG AS Holdco LLC may become a supplier for fabrics and coverlets, potentially charging a small percentage upcharge. Franchisees have the option to purchase these items from ASA or manufacturers. ASA may require franchisees to use a future procurement program. |
| Franchisor Revenue from Suppliers | In 2024, neither ASA nor its affiliates derived any revenue from required purchases or leases of products and services by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | ASA does not offer direct or indirect financing to franchisees. ASA does not guarantee your loans, mortgages, or other obligations. |
LG AS Franchisor- Affordable Suites of America Franchise Earnings — Item 19
Average Revenue
$51.1
Median Revenue
$51.12
Sample Size
21 units
Past financial performance does not guarantee future results. Individual results will vary.
LG AS Franchisor- Affordable Suites of America Litigation & Risk Flags
Clean Litigation RecordLG AS Franchisor- Affordable Suites of America has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
LG AS Franchisor- Affordable Suites of America System Growth
Total Units
30
Franchised
18
Company-Owned
12
LG AS Franchisor- Affordable Suites of America currently operates 18 franchised locations and 12 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 2 | 0 | 24 |
| 2023 | 1 | 0 | 27 |
| 2024 | 3 | 1 | 30 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$3.9M
Net Income
$-2,753,627
Total Assets
$3.9M
Audited by Deloitte & Touche LLP for year ending December 31.
LG AS Franchisor- Affordable Suites of America Franchise — FAQ
The total investment to open a LG AS Franchisor- Affordable Suites of America franchise ranges from $193,100 to $1,765,100, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
LG AS Franchisor- Affordable Suites of America charges a royalty fee of Greater of $2,500 per month or 5% of your Gross Room Revenues of gross sales, plus a Up to 2% of your Gross Room Revenues per month. Currently 1% of your Gross Room Revenues per month. contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the LG AS Franchisor- Affordable Suites of America Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from LG AS Franchisor- Affordable Suites of America to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, LG AS Franchisor- Affordable Suites of America franchise owners report average revenue of $51.1 and median revenue of $51.12. This is based on a sample of 21 units. Past performance does not guarantee future results.
LG AS Franchisor- Affordable Suites of America has been franchising since 2019. The FDD shows an investment range of $193,100-$1,765,100, a Greater of $2,500 per month or 5% of your Gross Room Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $193,100 to $1,765,100 depending on location size and market. A minimum of $75,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from LG AS Franchisor- Affordable Suites of America and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with LG AS Franchisor- Affordable Suites of America or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com