GrandStay

GrandStay

Information based on 2024 FDD

Lodging & Hospitality · Hotel Resorts

Investment min
$5M
Total: $5M–$19M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$35K
Per current disclosure
Royalty
5%
of gross revenue
Locations
31
Franchising since 2000

Description

What is GrandStay?

GrandStay Hotels, established in 2000, represents a unique opportunity in the midscale hospitality sector, offering a distinctive apartment-style hotel experience that caters to both short-term travelers and extended-stay guests. Each property features spacious suite configurations with one or two bedrooms, complete with living rooms and modern amenities, creating a home-away-from-home atmosphere that resonates with today's discerning travelers.

The brand differentiates itself through its commitment to providing a welcoming atmosphere, comfortable surroundings, and excellent service. Properties typically include desirable amenities such as swimming pools, hot tubs, and children's playgrounds, making them particularly attractive for family travelers. Their comprehensive breakfast program adds value for guests, while their Best Rate Guarantee demonstrates confidence in their pricing strategy and commitment to customer satisfaction.

GrandStay's business model focuses on creating intimate, community-integrated properties rather than massive hotel complexes, allowing franchisees to maintain more personal relationships with their guests. This approach has helped the brand establish a presence primarily in the Midwest, where they've built a reputation for providing comfortable accommodations in both urban and secondary markets.

For potential franchisees, GrandStay offers a proven operational model with comprehensive support systems. The brand's moderate size allows for more personalized franchise support and the opportunity to be part of a growing hospitality brand that emphasizes quality service and guest satisfaction. Their focus on both traditional hotel stays and extended-stay markets provides multiple revenue streams and business opportunities.
  • 24 Years of Continuous Hotel Operations
  • Premium Investment Hotel Franchise
  • Established Hotel Resorts Brand
  • Multi-Million Dollar Investment Platform
  • 31 Active Hotel Locations
  • Two Decades of Franchise Stability

Location Analysis

Where GrandStay wins

GrandStay demonstrates a concentrated regional presence across multiple states, showing particular strength in the Upper Midwest. The franchise maintains its strongest foothold in Minnesota, with additional significant presence in Wisconsin, and notable coverage in Michigan, Iowa, and North Dakota. This geographic clustering suggests a strategic focus on markets with similar demographic and economic characteristics.

The brand's average rating of 3.92 across numerous customer reviews indicates consistent service quality, though there's room for improvement. Notable success in smaller communities like Parkers Prairie, MN (4.7 rating) suggests GrandStay effectively serves secondary and tertiary markets where competition from major hotel chains may be limited.

The current distribution pattern reveals significant expansion opportunities, particularly in adjacent states like South Dakota, Illinois, and Indiana, where the brand's Upper Midwest expertise could translate well. Successful locations typically serve business travelers, tourism destinations, and regional event venues in communities underserved by upscale lodging options.

Ideal locations for new franchises should target communities with 15,000-50,000 residents, stable economic indicators, and proximity to major highways or regional attractions. The strong presence in Minnesota provides a proven operational model that could be replicated in similar markets throughout the region.
Total US locations
31
Franchise units
31
Corporate locations
0
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind GrandStay

Avg gross revenueN/A
Investment range$5,038,400 – $19,075,200
Investment midpoint$12,056,800
Brand fund2%
Royalty5%
Franchise fee$35,000
Min. net worth
Min. liquid capital
GrandStay requires a substantial capital commitment with investment ranges from $5.04 million to $19.08 million, positioning it as a premium hotel franchise opportunity requiring significant financial resources. This investment level substantially exceeds the Hotel Resorts sub-sector averages of $6.21 million to $7.66 million, indicating GrandStay targets higher-end hotel development with premium positioning.

The lodging industry benefits from recovering travel demand and business mobility trends, though hotel franchises face cyclical revenue patterns and high operational complexity. With revenue data unavailable for direct comparison, investors should conduct thorough due diligence on financial performance expectations.

With 31 units and 24 years of operation since 2000, GrandStay demonstrates operational stability and longevity in the competitive hotel market. This established track record provides confidence in the franchise system's viability, though the relatively small system footprint may impact brand recognition compared to major hotel chains.

The high investment threshold requires investors with substantial liquid capital and hospitality management experience. Multi-million dollar hotel projects typically involve SBA financing, conventional loans, and significant equity contributions. Territory rights and market protection become crucial given the substantial investment requirements.

Ideal candidates possess hospitality industry experience, access to $2-5 million in liquid capital, and understanding of real estate development. Prospective franchisees should thoroughly review the FDD and conduct comprehensive market analysis before committing to this substantial investment opportunity.
Did you know? Did you know that launching your own GrandStay extended-stay hotel franchise requires a total investment between $5,038,400 and $19,075,200, which covers everything from the $35,000 franchise fee to property acquisition, construction, furnishing, and working capital needed to open your doors in this growing hospitality market that caters to business travelers and guests seeking comfortable longer-term accommodations?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$5M–$19M
Most common
$5,038,400
Minimum
$12,056,800
Midpoint
$19,075,200
Maximum

Per FDD Item 7, total initial investment ranges from $5,038,400 to $19,075,200. The midpoint $12,056,800 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

0% YoY
4032241680
2017
2018
2019
2020
2021
2022
2023
2024
31 units open as of 2024 FDD

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for GrandStay's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a GrandStay franchise typically ranges between $5,038,400.00 and $19,075,200.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

GrandStay
GrandStay
N/A avg revenue · 31+ US franchises

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