About MainStay Franchise
MAINSTAY SUITES is an extended-stay, limited-service hotel brand franchised by Choice Hotels International, Inc.
Franchisees own and operate these hotels, offering residential-style amenities and affordable rates.
Each hotel room provides ample space for extended stays, with separate areas for dressing, relaxing, sleeping, and eating, and includes a well-equipped kitchen.
MainStay Franchise Cost & Fees
Minimum Investment
$7.5M
Average Investment
$10.6M
Maximum Investment
$13.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 minimum | One-time payment upon signing |
| Royalty Fee | 6.0% of Gross Room Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of the preceding month’s Gross Room Revenues (“GRR”) | National brand fund |
| Total Investment Range | $7,519,080 – $13,720,697 | Includes build-out, inventory, working capital |
The investment range of $7.5M–$13.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.0% of Gross Room Revenues) and marketing fee (2.5% of the preceding month’s Gross Room Revenues (“GRR”)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Affiliation Fee (Note 3) | $7,500 | $50,000 |
| Architectural Plans & Inspections (Note 4) | $60,000 | $150,000 |
| Legal Fees | $10,000 | $40,000 |
| Environmental Impact Study (if necessary) | $0 | $16,000 |
| Market Study | $3,000 | $15,000 |
| Construction (excluding soft costs) (Note 5) | $6,005,430 | $11,153,002 |
| Insurance (Note 6) | $31,000 | $165,000 |
| Pre-opening Advertising | $5,000 | $60,000 |
| Furniture, Fixtures & Equipment (Note 7) | $715,500 | $874,500 |
| Equipment for food preparation, fitness and laundry facilities | $130,000 | $200,000 |
| Hardware to operate the choiceADVANTAGE® property management system | $3,000 | $10,800 |
| choiceADVANTAGE® Software License and Systems Training Fees (Note 8) | $8,750 | $15,750 |
| Opening Inventory of Supplies (Note 9) | $213,400 | $329,800 |
| Orientation and Hospitality Training Fees (Note 10) | $0 | $10,845 |
| High Speed Internet Access for in-room, in-lobby, public areas and meeting rooms (Note 11) | $14,000 | $25,000 |
| Interior design waiver fee (Note 12) | $0 | $15,000 |
| Architectural design waiver fee (Note 13) | $0 | $15,000 |
| Mandatory On-Premise Signs (including freight and installation and plus maintenance and insurance) | $20,000 | $80,000 |
| Working Capital Required Before Operations Begin (Note 14) | $200,000 | $420,000 |
| Additional Funds for 3-Month Initial Period (Note 15) | $50,000 | $75,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The then current affiliation fee or $50,000, whichever is greater. |
| Technology Fee | $436-$719/month (choiceADVANTAGE® Support Fee) |
| Audit Fee | $1,000 - $6,000 |
| Rewards Program Fee | 5% of room revenue (1-6 nights), 2% (7-30 nights), cap 30 nights. Dual brand is 5% regardless of length. |
| Airline Frequent Traveler Program Fee | $7.00 per stay |
| Affiliate and Enhanced Reservations Program Commissions | Standard commissions (currently up to 10%) |
| Marketing Processing Fee | $0.48 per transaction (Affiliate, FedRooms, GSA), $0.12 per transaction (Reward Program or CHERP) |
| Third Party Distribution Fee | $3.00 for each consumed reservation |
| Travel Agent and Other Reservation Based Commissions | Standard commission (currently 10% - 12%) |
| General Sales Agents (GSA) Fee | 5% commission |
| Global Distribution System (“GDS”) / DHISCO Fee | Currently $7.70 for each reservation |
| Gift Card Redemption Processing Fee | 2.5% of the value of the gift card, plus $3 monthly check fee if applicable |
| Group Sales Lead Referral Program | 5% of consumed room revenue ($2,000 maximum per lead) |
| CrowdStrike | $60/month |
| Annual Convention Registration Fee | $1,115 plus travel, lodging and living expenses ($1,305 late) |
| Educational Resources Program | $1,000 plus any applicable taxes (annually) |
| Taxes | Amount assessed by federal, state and local tax authorities |
| Association’s Regional Franchise Meeting Fee | $299 per attendee plus travel, lodging and living expenses ($50 additional late fee) |
| Choice Hotels Owners Council (CHOC) Dues | $50/month |
| Resource Advisor Energy & Sustainability Software Platform | $215 (annually) up to $250 |
| SmartMarketing (Optional) | $0 - $45 |
| Choice Revenue Management Program (Optional) | $430 - $1,700/month |
| ChoiceMAX Revenue Management System (Optional) | $125-$355/month |
| Mega Agency and Consortia Pay for Performance Program (Optional) | 2.7% of total room revenue |
| Call Forwarding Reservation Service Fees (Optional) | $2.95 per call transferred, plus additional costs. Early exit fee $500/month. |
| Choice Privileges Meeting/Group Planner Point Program | $0.005 per Choice Privileges point awarded |
| Marketing Cooperative Fee (Optional) | $400 - $2,400 annually |
| choiceADVANTAGE® Quick Shop (Optional) | $30 monthly |
| AHLA Dues (Optional) | $4.50/room |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Choice Onboard: 2.5 days; HOST: 27 hours; Additional immersive training for inexperienced operators: 2-4 days. |
| Classroom Training | Choice Onboard: 20 hours; HOST: 27 hours; Sales Training: 14.5 hours; Systems Re-License: 4 hours. |
| On-the-Job Training | Choice Onboard: 0 hours; HOST: 0 hours; Sales Training: 0 hours; Systems Re-License: 0 hours; choiceADVANTAGE® Online Remote Onboarding: 16-22 hours. |
| Training Location | Choice Onboard: Rockville, Maryland or Scottsdale, Arizona; HOST: Any location with internet access; Sales Training: Any location with internet access or at an open and operating Choice branded hotel; Systems Re-License: Any location with internet access; choiceADVANTAGE® Online Remote Onboarding: Remotely. |
| Additional Training | Educational Resources Program ($1,000 annually); virtual trainings on extended stay topics; optional regional workshops; additional training based on individual hotel needs ($49-$499). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (if granted), otherwise Non-exclusive |
| Exclusive Territory | Yes |
| Territory Size | geographically defined areas |
| Description | Franchises are granted for specific sites only. Exclusive territories may be granted based on local market conditions, prior history with the franchisor, and the number of franchised hotels. These preferred regions and exclusive territories are determined by the franchisor and can be terminated upon default of the franchise agreement. Master Development Agreements may grant limited rights to build additional hotels in protected areas with a development schedule. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years after the Opening Date |
| Renewal Conditions | No provision for renewal after 20 year term expires. |
| Transfer Fee | The then current affiliation fee or $50,000, whichever is greater. |
| Transfer Conditions | Transferee must meet current franchisor qualifications, hotel must comply with brand image and standards. If a Controlling Interest is transferred, the transferee must sign the then-current franchise agreement and pay a re-licensing fee equal to the then-current affiliation fee. Transfers to Close Family Members may incur an application fee not to exceed $7,500. |
| Termination for Cause | The franchisor may terminate the agreement if the franchisee defaults and fails to cure within the applicable time period (10 days for non-payment/reports, 30 days for other breaches). Immediate termination without opportunity to cure can occur for imminent threat to public safety, abandonment, criminal behavior, unauthorized transfer, false records, bankruptcy, failure to maintain insurance, multiple defaults, construction/opening deadline failures, property improvement deadline failures, goodwill impairment, or unauthorized disclosure of confidential information. |
| Non-Compete Details | The franchise agreement does not contain non-competition covenants during or after the term of the franchise. However, Washington state law (RCW 49.62.060) prohibits franchisors from restricting or prohibiting franchisees from soliciting or hiring employees of the same franchisor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor does not require personal participation in the direct operation of the hotel. However, a certified General Manager is mandatory for each hotel. The franchisor provides training for General Managers under the Hospitality Operations Success Training (HOST) program. The General Manager is not required to hold an ownership interest. The franchisor may also require contracting with a recognized hotel management company with extended stay credentials. |
| Required Suppliers | Franchisees must purchase certain Choice Mark-bearing items (signs, bath amenities), bedding, computer hardware, and other brand standard items from Qualified Vendors. Certain Qualified Vendors are designated as exclusive suppliers in the Rules and Regulations. |
| Supply Restrictions | The franchisor may limit the number of Qualified Vendors to obtain volume discounts and promote consistent quality and adequate supplies. Vendors not on the Qualified Vendor list may apply to become 'Qualified'. |
| Franchisor Revenue from Suppliers | Franchisor receives commissions or rebates from Qualified Vendors, typically ranging from 1% to 2% (up to 20%) of net sales volume, and an annual flat fee. In 2021, revenues attributable to franchisee purchases were $86.9 million, or about 8.14% of total revenues, including revenues from Qualified Vendors and choiceADVANTAGE® installation and support fees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Choice Hotels International offers financing for the affiliation fee through a 10-year forgivable promissory note (or a 5-year note with 50% incentive) as part of its Diversity and Veteran Incentive Program. The company also has non-exclusive Qualified Vendor agreements with third-party lenders like PMC Commercial Trust, Balboa Capital Corporation, Ascentium Capital LLC, and AVANA CAPITAL, which offer conventional and SBA loans for various costs including affiliation fees, construction/remodeling, equipment, and operating expenses. These loans typically range from $5,000 to $45,000,000 with variable or fixed interest rates and require monthly or quarterly payments. Choice receives flat payments from these lenders for granting access to its marketing channels. |
MainStay Franchise Earnings — Item 19
Average Revenue
$55.41
Median Revenue
$55.06
Revenue Range
$25.8 – $133.38
Sample Size
68 units
Past financial performance does not guarantee future results. Individual results will vary.
MainStay Litigation & Risk Flags
5 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
MainStay System Growth
Total Units
101
Franchised
101
Company-Owned
0
MainStay currently operates 101 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 3 | 73 |
| 2020 | 20 | 3 | 90 |
| 2021 | 13 | 2 | 101 |
Transfers: 1 | Closures: 8
State Registrations
Registered in 12 states: CA, HI, IL, MD, MI, MN, NY, ND, RI, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1069.3M
Net Income
$289.0M
Total Assets
$1931.8M
Audited by Ernst & Young LLP for year ending December 31.
MainStay Franchise — FAQ
The total investment to open a MainStay franchise ranges from $7,519,080 to $13,720,697, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000 minimum. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
MainStay charges a royalty fee of 6.0% of Gross Room Revenues of gross sales, plus a 2.5% of the preceding month’s Gross Room Revenues (“GRR”) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the MainStay 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 MainStay to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, MainStay franchise owners report average revenue of $55.41 and median revenue of $55.06. This is based on a sample of 68 units. Past performance does not guarantee future results.
MainStay has been franchising since 1996. The FDD shows an investment range of $7,519,080-$13,720,697, a 6.0% of Gross Room Revenues royalty, and includes an Item 19 earnings disclosure. There are 5 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 minimum and the total investment ranges from $7,519,080 to $13,720,697 depending on location size and market. A minimum of $200,000 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 MainStay and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with MainStay or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com