Business Description

Hotel franchisor of MICROTEL INNS & SUITES and HAWTHORN SUITES. MICROTEL -- all new construction, budget. HAWTHORN -- upper mid-priced all-suites brand. USFS is known as the "fair franchisor" with the most 2-sided agreement, lower than average fee structure, and no-hidden fees. Brands range from low-capital requirements (MICROTEL) to upper-middle (HAWTHORN).

Franchisor Background

Year Established:  1995

Franchising Since:  1995

Operating Units:
Franchised Units:	382	100%
Company-Owned Units:	0	0%
Total Operating Units:	382	100.0%
Geographic Distribution: U.S.: 368 96.3% In 49 States Canada: 1 0.3% In 0 Canadian Provinces International: 13 3.4% In 0 Foreign Countries   Total: 382 100.0%

North America:
States/Provinces with the largest number of operating units:

Density

Units

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:
Minimum Net Worth:	$NA
Cash Investment:	$600K-1MM
Total Investment:	$2-7MM
Average Total Investment:	$4500K
Fees:
Initial Franchise Fee:	$40K
Average Franchise Fee:	$40K
On-Going Royalty:	5-6%
Average Royalty:	6%
Advertising Fee:	2.5%

Average Number of Employees: 10-25 Full-time, 0 Part-time

Space Needs (in square footage): 45,000

Preferred Sites: Free-standing Building

Other Sites: Raw land for development

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	4
Formal Education:	3
Psychological Profile:	3
Personal Interview(s):	4
Terms of Contract
Term of Initial Contract:	20 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	150
Site Selection Assistance?	No
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Not Applicable
Central Purchasing:	Not Applicable
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	Included in Fees
800 Telephone Hotline:	Included in Fees
Training:
1. Atlanta, GA	3-4 Days
2. On-Site	As Needed
Expansion Plans
Projected New Units Over Next 12 months: 20 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: Yes, All Countries	Request Franchisor Info   Submit an online form to receive information from US Franchise Systems.