Start a GrandStay Hotels Franchise in 2024

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $306K - $19.1M

Units as of 2024: 31 8% over 3 years

GrandStay Hospitality is a chain of hotels offering upper-midscale lodging facilities and catering. GrandStay Hospitality strives to be known for its convenient full-extended stay rooms featuring kitchenettes and productivity rooms for guests. This franchise may be an excellent fit for potential franchisees with a sense of customer service and an eye for ultimate customer satisfaction.

There are over 30 GrandStay Hospitality locations throughout the United States.

Why You May Want to Start a GrandStay Hospitality Franchise

GrandStay Hospitality’s refined business model may offer potential growth for franchisees. Guests might love the brand because of its customer services, including top-of-the-line guest rooms and suites with flexible options ranging from standard, queen or king-size beds, fitness centers, indoor pools, meeting rooms, business centers, and free WiFi. Additionally, scrumptious GrandStay Hospitality’s breakfast is something most guests do not want to miss.

GrandStay Hospitality’s core belief is that no one size fits all. The hotels are designed to prioritize relaxation by offering tailored service and fun for every guest. Hotel staff and managers work with each customer, building great rapport. The best part of the system may be the loyalty rewards program that encourages guests to visit regularly. With loyalty rewards, guests may receive 10 Grand Returns Points for every dollar they spend in-house, with the prospects of turning points into cash or additional stays.

What Might Make a GrandStay Hospitality Franchise a Good Choice?

GrandStay Hospitality does require an initial fee made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include advertising fees and royalty fees.

Franchisees will also need to meet the company's set net worth and liquid capital requirements.

If the company accepts you as a franchisee, brand marketing may take unnecessary and tiresome marketing operations off your back and let you focus on actual business operations. Other special services offered to franchisees may include personalized sales assistance, dedicated management training, marketing, revenue planning, and yield management assistance.

GrandStay Hospitality allows for absentee ownership, which may allow you to spend more time doing things that you want to do, whether that be spending time with family and friends, relaxing, or working on other business ventures.

How To Open a GrandStay Hospitality Franchise

If you want to start a GrandStay Hospitality franchise, it would be wise to consult an attorney when reviewing GrandStay Hospitality’s Franchise Disclosure Document. As you decide if opening a GrandStay Hospitality franchise is the right decision for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a GrandStay Hospitality franchise would do well in your community.

It may be a good idea to speak with a financial advisor before making any decisions to ensure that you have the necessary financial capital to own and operate a GrandStay Hospitality franchise. If you decide to go on with the opportunity, then you can reach out to GrandStay Hospitality via an online form. After that, you may be contacted by the GrandStay Hospitality franchise team to begin the process.

A passion for the hospitality industry is key to ensure that your guests have a grand stay while at a GrandStay Hospitality franchise!

Company Overview

About GrandStay Hotels

Industry	Lodging
Related Categories	Hotels & Motels
Founded	2000
Parent Company	GrandStay Hospitality LLC
Leadership	Jon Kennedy, President
Corporate Address	1822 Buerkle Rd. White Bear Lake, MN 55110
Social	Facebook, LinkedIn, Instagram

Business Overview

Franchising Since	2000 (24 years)
# of employees at HQ	5
Where seeking	This company is offering new franchises throughout the US.
# of Units	31 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a GrandStay Hotels franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$35,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$306,400 - $19,075,200
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$1,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$1,000,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	20 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	GrandStay Hotels has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	96 hours
Classroom Training	16 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	15
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes