Franchise pricing in the lodging industry is far more intricate than the three headline fees most associated with franchising. A new FRANdata analysis of extended stay hotel brands reveals a landscape of approximately 1,700 fee items — spanning roughly 300 startup fees and 1,400 ongoing charges — covering everything from loyalty programs and reservation infrastructure to quality assurance, technology platforms, and compliance-triggered penalties. Because fees vary considerably in how they’re structured, labeled, and applied across brands, comparing only a handful of headline numbers obscures the true cost of participation in any lodging franchise system.
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To address that gap, FRANdata conducted a comprehensive review of fee structures across the extended stay hotel segment, classifying each fee by pricing methodology, frequency, fee type, and functional purpose. The study establishes a standardized framework for comparing costs that are often presented differently across systems — and provides a clearer picture of how lodging franchisors allocate those costs across startup activities, ongoing operations, marketing, technology, and support services.