Suburban Studios FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered is for the right to construct or operate a hotel under the name and primary business trademark “SUBURBAN STUDIOS®”
Corporate Information
Choice Hotels International, Inc. is a Delaware corporation formed on January 8, 1963, under the name Quality Inns International, Inc. They changed their corporate name to Choice Hotels International, Inc. on July 25, 1990. From November 1, 1996 to October 15, 1997, their corporate name was Choice Hotels Franchising, Inc. Their corporate name has been Choice Hotels International, Inc. since October 15, 1997. Their principal business
address is 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852.
Investment
The total investment necessary to begin operation of a new SUBURBAN hotel is between $8,498,910 and $11,097,646, assuming the hotel contains 117 guestrooms but excludes the cost of real estate. The total investment necessary to convert an existing hotel and begin operation of SUBURBAN hotel is between $315,650 and $1,832,349, assuming the hotel contains 88 guestrooms but excludes the cost of real estate. This includes $47,500 to $72,799 that must be paid to the franchisor or its affiliates as follows: an affiliation fee of $300 per room for new franchises and $475 per room for transfers and
renewals ($40,000 minimum); orientation and hospitality training fees of between $0 and $10,845 per person; and approximately $6,000 to $30,000 in pre-opening supplies and equipment, a property management system software license and systems training fee of between $5,250 and $7,250. These sums do not include the cost of purchasing or leasing land or any real estate taxes.
