Suburban and Suburban Studios FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered in this disclosure document is for the rights to own and/or operate a SUBURBAN® or SUBURBAN STUDIOS™ hotel business.
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 1 Choice Hotels Circle, Suite 400, Rockville, Maryland 20850.
The total investment necessary to begin operation of a 117-room newly constructed SUBURBAN franchise is between $4,544,926 and $8,519,444. The total investment necessary to convert an existing hotel and begin operation of a 88-room SUBURBAN franchise is between $158,450-$1,462,895 This
includes $35,250 to $52,095 that must be paid to the franchisor or its affiliates as follows: an affiliation fee of $225 per room for new franchises and $475 per room for transfers and renewals ($30,000 minimum); a property management system software license and systems training fee of between $5,250 and $11,250; and orientation and hospitality training fees of between $0 and $10,845 per person. These sums do not include the cost of purchasing or leasing land or any real estate taxes.