Document:

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                                                                 Exhibit 10.5

                             STOCKHOLDERS AGREEMENT

    THIS STOCKHOLDERS AGREEMENT (the "AGREEMENT") is made as of June 30, 2000,
by and among Meridian Associates, L.P., an Illinois limited partnership
("MERIDIAN"), SDI, Inc., a Nevada corporation ("SDI, INC" together with its
permitted assignees, collectively, the "INVESTORS"), HSA Properties, Inc., a
Delaware corporation ("HSA PROPERTIES", together with the Investors and
Meridian, collectively, the "INVESTOR GROUP"), and Michael A. Leven, Andrea
Leven, Jonathan Leven, Robert Leven, and Adam Leven (collectively, the "LEVEN
STOCKHOLDERS"), and Steven Romaniello (the "ROMANIELLO"). The Investor Group,
the Leven Stockholders and Romaniello are collectively referred to as the
"STOCKHOLDERS" and individually as a "STOCKHOLDER."

                                    RECITALS

    The Leven Stockholders are holders of Common Stock of U.S. Franchise
Systems, Inc., a Delaware corporation (the "COMPANY"). Romaniello is or may
become a holder of Common Stock of the Company. Meridian is a holder of Common
Stock of the Company, and the Investors have agreed to purchase shares of the
Company's Series A 8.5% Cumulative Redeemable Preferred Stock and Series B 6.0%
Cumulative Redeemable Convertible/Exchangeable Preferred Stock on the terms and
subject to the conditions of a Recapitalization Agreement among the Investor
Group and the Company dated as of June 2, 2000 (the "RECAPITALIZATION
AGREEMENT").

    The Company and some of the Stockholders are parties to a Stockholders'
Agreement dated March 12, 1998 as amended March 10, 1999 (the "HSA STOCKHOLDERS
AGREEMENT"), providing, among other things, for restrictions on transfers of
Common Stock held by them. By separate agreement, the parties to the HSA
Stockholders Agreement have agreed to terminate the HSA Stockholders Agreement
effective on the Closing Date under the Recapitalization Agreement (the
"EFFECTIVE DATE").

    The Stockholders desire to enter into this Agreement for the purposes, among
others, of (i)assuring continuity in the management and ownership of the
Company, and (ii)limiting the manner and terms by which the Stockholders'
Preferred Stock and Common Stock may be transferred.

                                   AGREEMENT

    For good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement hereby agree as follows:

    1. DEFINED TERMS.  Capitalized terms used herein as defined terms and not
otherwise defined shall have them meanings given to them below:

    "AFFILIATE" with respect to any Person, means any other Person, entity or
investment fund controlling, controlled by or under common control with such
Person and any partner of such Person which is a partnership. "AFFILIATE" with
respect to the Investor Group, means, in addition to the foregoing, any and all
of the lineal descendants of Nicholas J. Pritzker, deceased, any and all trusts
for their benefit or for the benefit of any of their spouses, and any Person
owned or controlled by such lineal descendants or trusts.

    "BROKERS TRANSACTION" has the meaning provided in Section 4(4) of the
Securities Act of 1933.

    "CERTIFICATE OF INCORPORATION" means the certificate of incorporation of the
Company, as amended, supplemented or restated from time to time.

    "COMMON STOCK"means the Common Stock of the Company, $.01 par value.

    "CURRENT MARKET PRICE" of any security means the average of the closing
prices of such security's sales on all securities exchanges on which such
security may at the time be listed, or, if there has been no sales on any such
exchange on any day, the average of the highest bid and lowest asked prices on
all such exchanges at the end of such day, or, if on any day such security is
not so listed, the average of the
<PAGE>
representative bid and asked prices quoted in the NASDAQ Stock Market as of
4:00 p.m., New York time, or, if on any day such security is not quoted in the
NASDAQ Stock Market, the average of the highest bid and lowest asked prices on
such day in the domestic over-the-counter market as reported by the National
Quotation Bureau, Incorporated, or any similar successor organization, on the
day as of which "CURRENT MARKET PRICE" is being determined.

    "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

    "FAMILY GROUP" with respect to any person, means such person's spouse and
descendants (whether natural or adopted) and any trust solely for the benefit of
such person and/or the person's spouse and/or descendants.

    "INDEPENDENT THIRD PARTY" means any Person who, immediately prior to the
contemplated transaction, does not own in excess of 5% of the Company's Common
Stock and Underlying Common Stock on a fully-diluted basis (a "5% OWNER"), who
is not an Affiliate with any such 5% Owner and who is not in the Family Group of
any such 5% Owner or a trust for the benefit of such 5% Owner and/or such other
Persons.

    "ORIGINAL SHARES" with respect to any Person or group means the Shares held
by such Person or group as of the Effective Date and Shares acquired after the
Effective Date pursuant to the exercise of options or conversion/exchange
rights.

    "PERSON" means an individual, a partnership, a limited liability company, a
corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency
or political subdivision thereof.

    "PREFERRED STOCK" shall mean the Series B 6.0% Cumulative Redeemable
Convertible/Exchangeable Preferred Stock of the Company acquired by the Investor
Group pursuant to the Recapitalization Agreement.

    "SHARES" means (i) any Common Stock held, purchased or otherwise acquired by
any Stockholder, (ii) any Preferred Stock purchased or otherwise acquired by any
Stockholder, (iii)any warrants purchased or otherwise acquired by any
Stockholder, (iv)any equity securities issued or issuable directly or indirectly
with respect to the Common Stock referred to in clause(i) above or the Preferred
Stock referred to in clause (ii) above (including the Underlying Common Stock)
by way of stock dividend or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation or other reorganization, and
(v)any other shares of any class or series of capital stock of the Company held
by a Stockholder.

    "UNDERLYING COMMON STOCK" shall mean (i) the Common Stock issued or issuable
upon conversion of the Preferred Stock and (ii) any equity securities issued or
issuable with respect to the securities referred to in clause (i) above by way
of stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization. Any person who
holds Preferred Stock will be deemed to be the holder of the Underlying Common
Stock obtainable upon conversation of such Preferred Stock and regardless of any
restriction on the exercise of the conversion of such Preferred Stock for
purposes of this Agreement.

    2. RESTRICTIONS ON TRANSFER OF SHARES.

        (a) TRANSFER OF SHARES.  From and after the Effective Date, no
    Stockholder shall sell, transfer, assign, pledge or otherwise dispose
    (whether voluntarily or involuntarily, by operation of law or otherwise a
    "TRANSFER") of any interest in any Shares, whether now owned or hereafter
    acquired, in violation of the provisions of this Agreement. Each Stockholder
    agrees not to consummate any Transfer subject to this Agreement until 20
    days after the later of the delivery to the other Stockholders of such
    Stockholder's Offer Notice or Sale Notice (if required by this Agreement),
    unless the parties to the Transfer have been finally determined pursuant to
    this SECTION 2 prior to the expiration of such 20 day period (the "ELECTION
    PERIOD").

                                      2
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        (b) FIRST OFFER RIGHT.  At least 20 days prior to making any Transfer of
    any Shares, other than a Transfer of Shares held by the Investor Group, the
    Stockholder intending to make such transfer (the "TRANSFERRING STOCKHOLDER")
    shall deliver a written notice (the "OFFER NOTICE") to the other
    Stockholders (the "OTHER STOCKHOLDERS"). The Offer Notice shall disclose in
    reasonable detail the proposed number of Shares to be transferred, the
    identity of the proposed transferee, and the proposed terms and conditions
    of the Transfer and shall be accompanied by a bona fide offer to purchase
    such Shares on such terms and conditions from an Independent Third Party or
    other Person not an Affiliate of the Transferring Stockholder. Each Other
    Stockholder may elect to purchase all (but not less than all) of its, his or
    her Pro Rata Share (as defined below) of the Shares specified in the Offer
    Notice at the price and on the terms specified therein by delivering written
    notice of such election to the Transferring Stockholder as soon as practical
    but in any event within 10 days after delivery of the Offer Notice. Any
    Shares not elected to be purchased by the end of such 10 day period shall be
    reoffered for the 10 day period prior to the expiration of the Election
    Period by the Transferring Stockholder on a pro rata basis to the Other
    Stockholders who have elected to purchase their Pro Rata Share. If any Other
    Stockholders have elected to purchase Shares from the Transferring
    Stockholder, the transfer of such Shares shall be consummated as soon as
    practical after the delivery of the election notices, but in any event
    within 10 days after the expiration of the Election Period. To the extent
    that the Other Stockholders have not elected to purchase all of the Shares
    being offered, the Transferring Stockholder may, within 30 days after the
    expiration of the Election Period, transfer such Shares to the proposed
    transferee named in the Offer Notice for the price per Share specified in
    the Offer Notice and on the other terms and conditions stated in the Offer
    Notice. The purchase price specified in any Offer Notice shall be payable
    solely in cash at the closing of the transaction. Each Stockholder's "PRO
    RATA SHARE" shall be based upon such Stockholder's proportionate ownership
    of all Shares on a fully-diluted basis.

        (c) PERMITTED TRANSFERS.  The restrictions and rights contained in this
    SECTION 2 shall not apply with respect to any Transfer of Shares:

           (i) by a Leven Stockholder or Romaniello pursuant to applicable laws
       of descent and distribution or among such Stockholder's Family Group;
       provided, however, that the restrictions contained in this SECTION 2
       shall continue to be applicable to the Shares after any such Transfer;
       and provided, further, that the transferees of such Shares shall have
       agreed in writing to be bound by the provisions of this Agreement
       affecting the Shares so transferred;

           (ii) by Michael and/or Andrea Leven in Brokers Transactions, after
       notice to the Investor Group, at any time and from time to time after the
       second anniversary of the Effective Date; provided that Michael and/or
       Andrea Leven shall not be permitted to Transfer, in the aggregate, more
       than one-third of their Original Shares before the third anniversary of
       the Effective Date or more than two-thirds of their Original Shares
       before the fourth anniversary of the Effective Date;

           (iii) by a Leven Stockholder (other than Michael and Andrea Leven) in
       Brokers Transactions at any time and from time to time after notice to
       the Investor Group;

           (iv) by Romaniello in Brokers Transactions, after notice to the
       Investor Group, at any time and from time to time after the fourth
       anniversary of the Effective Date; provided that Romaniello shall not be
       permitted to Transfer, in the aggregate, more than one-third of his
       Original Shares before the fifth anniversary of the Effective Date or
       more than two-thirds of his Original Shares before the sixth anniversary
       of the Effective Date; and

           (v) by any Stockholder to the Company.

    3. TAG-ALONG RIGHTS.  In the event that the Investor Group proposes to
Transfer, in one or a series of related transactions, more than 20% of their
Original Shares to an Independent Third Party and not involving a "BROKERS
TRANSACTION" within the meaning of Rule 144 under the Securities Act of 1933,
they shall deliver a written notice (the "SALE NOTICE") to the Other
Stockholders, specifying in reasonable detail

                                      3
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the identity of the prospective transferee(s) and the terms and conditions of
the Transfer. The Other Stockholders may elect to participate in the
contemplated Transfer with respect to any Shares they then hold by delivering
written notice to the Investor Group within 10 days after delivery of the Sale
Notice. If any Other Stockholders have elected to participate in such Transfer,
the Investor Group and such Other Stockholders shall be entitled to sell in the
contemplated Transfer, at the same price and on the same terms, a number of
Shares equal to the product of (a)the quotient determined by dividing the
percentage of Shares owned by such person by the aggregate percentage of Shares
owned by Investor Group and the Other Stockholders participating in such sale
and (b)the number of Shares to be sold in the contemplated Transfer. The
Investor Group shall use its best efforts to obtain the agreement of the
prospective transferee(s) to the participation of the Other Stockholders in the
contemplated Transfer, and the Investor Group shall not transfer any of their
Shares to the prospective transferee(s) if the prospective transferee(s)
declines to allow the participation of the Other Stockholders. If any portion of
the Preferred Stock is included in any Transfer of Shares under this SECTION 3,
the Transfer of such Preferred Stock shall be treated as a transfer of the
Underlying Common Stock, and the purchase price for each share of Preferred
Stock shall be equal to the full purchase price determined hereunder for the
underlying Common Stock issuable upon conversion of the Preferred Stock to be
transferred less any price payable by the holder of the Preferred Stock in
connection with such conversion/exchange.

    4. CO-SALE RIGHTS.  In the event that the Investor Group proposes to
Transfer more than 50% of their Shares to an Independent Third Party, they may
deliver a written notice (the "CO-SALE NOTICE") to the Other Stockholders, not
less than 10 days prior to the date of such Transfer, specifying in reasonable
detail the identity of the prospective transferee(s) and the terms and
conditions of the proposed transfer and directing that the Stockholders shall
participate in such proposed Transfer. If the Investor Group gives the Co-Sale
Notice, each Stockholder shall participate in such Transfer and sell, at the
same price and on the same terms, a number of Shares equal to the product of
(a) the quotient determined by dividing the number of Shares owned by each
Stockholder by the aggregate number of Shares owned by all Stockholders and
(b) the number of Shares to be acquired by the proposed transferee. If any
portion of the Preferred Stock is included in any Transfer of Shares under this
SECTION 4, the Transfer of such Preferred Stock shall be treated as a transfer
of the Underlying Common Stock, and the purchase price for each share of
Preferred Stock shall be equal to the full purchase price determined hereunder
for the underlying Common Stock issuable upon conversion of the Preferred Stock
to be transferred less any price payable by the holder of the Preferred Stock in
connection with such conversion/exchange.

    5. PLEDGE OF SHARES.  From and after the Effective Date, no Shares may be
pledged without the prior written consent of the Investor Group which consent
may be withheld in their sole discretion.

    6. TERMINATION OF RESTRICTIONS.  The restrictions and rights set forth in
SECTION 2 shall continue with respect to each Share until the earlier of
(a) the date on which such Share has been transferred pursuant to SECTION 2
(other than SECTION 2(c)) or (b) the seventh anniversary of the Effective Date.
The restrictions and rights set forth in SECTION 2 shall terminate with respect
to the Shares held by the Leven Stockholders upon the termination of Michael
Leven's employment with the Company by reason of his death or disability or
under circumstances constituting termination by the Company without "cause" (as
defined in the applicable employment agreement) or termination by Mr. Leven for
"good reason" (as defined in the applicable employment agreement). The
restrictions and rights set forth in SECTION 2 shall terminate with respect to
the Shares held by Romaniello upon the termination of Romaniello's employment
with the Company by reason of his death or disability or under circumstances
constituting termination by the Company without "cause" (as defined in the
applicable employment agreement) or termination by Romaniello for "good reason"
(as defined in the applicable employment agreement). The restrictions and rights
set forth in SECTIONS 3, 4, and 5 shall terminate on the earlier of (i) the
seventh anniversary of the Effective Date and (ii) the date upon which the
Investor Group no longer holds 50% of their Original Shares.

                                      4
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    7. ELECTION OF DIRECTORS.

        (a) VOTING FOR DIRECTORS.  On or as promptly as practicable after the
    Effective Date, each of the Stockholders shall take all such lawful action,
    including affirmatively voting the Shares owned by such Stockholder, as
    necessary to cause the Company's Board of Directors to consist of eleven
    persons and as necessary to remove incumbent directors so as to enable the
    election of new directors as contemplated by this SECTION 7(a). Subject to
    the provisions of SECTION 7(b) hereof, each of the Stockholders shall vote
    all of the Shares owned or controlled by such Stockholder (i) at each annual
    or special meeting of the Company's stockholders called for the purpose of
    electing directors or (ii) by written consent (in lieu of a meeting) of the
    Company's stockholders for the purpose of electing directors, in favor of
    the following:

           (A) the election to the Board of Directors of the six nominees
       designated from time to time by the Investor Group, two of whom shall be
       persons who are not directors, officers, employees, agents, or other
       representatives of the Investor Group or any Affiliate of the Investor
       Group; and

           (B) election to the Board of Directors of Michael A. Leven as long as
       Michael A. Leven is employed by the Company and thereafter as long as he
       and his Family Group and his Affiliates, collectively, hold Shares or
       options to acquire Shares representing in excess of 3% of the voting
       power represented by the Common Stock of the Company outstanding,
       calculated on a fully diluted basis;

           (C) election to the Board of Directors of Romaniello as long as
       Romaniello is employed by the Company; and

           (D) election to the Board of Directors of at least three persons who
       are designated or otherwise nominated in accordance with SECTION 12.1 of
       the Certificate of Incorporation.

        (b) REMOVAL; VACANCIES.  Any director who is elected to the Board of
    Directors of the Company pursuant to a designation under cfiSection
    7(a) hereof (other than clause (D) of SECTION 7(a)) may be removed from the
    Board of Directors with or without cause upon the request of the Stockholder
    who designated such director and the Stockholder shall promptly take all
    such lawful action as necessary to call or convene a special meeting of the
    Company's stockholders as soon as reasonably practical and to affirmatively
    vote their Shares at such meeting, or to execute a written consent of
    stockholders in lieu of a meeting to give effect to such requested removal.
    In the event that a director so elected resigns, is removed from office, or
    otherwise ceases to serve on the Board of Directors of the Company, for any
    reason, the vacancy shall be filled with an individual designated in
    accordance with SECTION 7(a) hereof by the Stockholder who originally
    designated such director (in the case of directors designated under clauses
    (A), (B) or (C) of SECTION 7(a)) and by the remaining directors (in the case
    of directors designated under clause (D) of SECTION 7(a)), and the
    Stockholders shall promptly take all such lawful action as necessary to call
    or convene a special meeting of the Company's stockholders as soon as
    reasonably practical and to affirmatively vote their Shares at such meeting,
    or to execute a written consent of stockholders in lieu of a meeting, to
    elect such individual to the Board of Directors.

    8. LEGEND.  Each certificate evidencing Shares and each certificate issued
in exchange for or upon the transfer of any Shares (if such shares remain
subject to this Agreement after such transfer) shall be stamped or otherwise
imprinted with a legend in substantially the following form:

           "The securities represented by this certificate are
           subject to a Stockholders Agreement dated as of June 2,
           2000, among U.S. Franchise Systems, Inc. and certain of
           its stockholders. A copy of such Stockholders Agreement is
           on file at the principal offices of the Corporation."

    The Company shall imprint such legend on certificates evidencing Shares
outstanding as of the Effective Date. The legend set forth above shall be
removed from the certificates evidencing any Shares that are no longer subject
to this Agreement by reason of a Transfer permitted by SECTION 2 hereof.

                                      5
<PAGE>
    9. TRANSFERS IN VIOLATION OF AGREEMENT.  Any Transfer or attempted Transfer
of any Shares in violation of any provision of this Agreement shall be void, and
the Company shall not be required to record such Transfer on its books or treat
any purported transferee of such Shares as the owner of such shares for any
purpose.

    10. AMENDMENT AND WAIVER.  Except as otherwise provided herein, any
provision of this Agreement may be amended, modified, or waived if such
modification, amendment or waiver is approved in writing by the holders of at
least 90% of the Shares and Underlying Common Stock; provided that no such
covenant shall materially and adversely affect the right of any Stockholder who
did not consent thereto. The failure of any party to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the right of such party thereafter to enforce
each and every provision of this Agreement in accordance with its terms.

    11. SEVERABILITY.  Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

    12. ENTIRE AGREEMENT.  Except as otherwise expressly set forth herein, this
document embodies the complete agreement and understanding among the parties
hereto with respect to the subject matter hereof and supersedes and preempts any
prior understandings, agreements or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.

    13. SUCCESSORS AND ASSIGNS.  Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the
Stockholders and any subsequent holders of Shares and the respective successors
and assigns of each of them, so long as they hold Shares.

    14. DESCRIPTIVE HEADINGS.  The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

    15. REMEDIES.  The Stockholders shall be entitled to enforce their rights
under this Agreement specifically to recover damages by reason of any breach of
any provision of this Agreement and to exercise all other rights existing in
their favor. The parties hereto agree and acknowledge that money damages may not
be an adequate remedy for any breach of the provisions of this Agreement and
that any Stockholder may in his, her or its sole discretion apply to any court
of law or equity of competent jurisdiction for specific performance and/or
injunctive relief (without posting a bond or other security) in order to enforce
or prevent any violation of the provisions of this Agreement.

    16. NOTICES.  Any notice provided for in this Agreement shall be in writing
and shall be either personally delivered, or mailed first class mail (postage
prepaid) or sent by reputable overnight courier service (charges prepaid) to any
other recipient at the address indicated on the Schedules hereto and to any
subsequent holder of Shares subject to this Agreement at such address as
indicated by the Company's records, or at such address or to the attention of
such other person as the recipient party has specified by prior written notice
to the sending party. Notices will be deemed to have been given hereunder when
delivered personally, three days after deposit in the U.S. mail and one day
after deposit with a reputable overnight courier service.

    17. GOVERNING LAW.  All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by the internal law, and not
the law of conflicts, of Delaware.

    18. COUNTERPARTS.  This Agreement may be executed in separate counterparts
each of which shall be an original and all of which taken together shall
constitute one and the same agreement.

                                      6
<PAGE>
    IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first written above.

<TABLE>
<S>                                         <C>    <C>
INVESTOR GROUP:                             MERIDIAN ASSOCIATES, L.P.

                                            By: Meridian Investments, Inc.
Its General Partner
                                            By:    /s/ H.S. Handelsman
                                                   -----------------------------------------

                                            Name:  H.S. Handleman
                                                   -----------------------------------------

                                            Its:   Vice President
                                                   -----------------------------------------

                                            SDI, INC.

                                            By:     /s/ H.S. Handelsman
                                                   -----------------------------------------

                                            Name:   H.S. Handelsman
                                                   -----------------------------------------

                                            Its:    Vice President
                                                   -----------------------------------------

                                            HSA PROPERTIES INC.

                                            By:    /s/ H.S. Handelsman
                                                   -----------------------------------------

                                            Name:  H.S. Handelsman
                                                   -----------------------------------------

                                            Its:   Vice President
                                                   -----------------------------------------

                                            200 West Madison, Suite 3800
                                            Chicago, Illinois 60606
                                            Attention: Harold S. Handelsman
LEVEN STOCKHOLDERS:
                                            /s/ Michael A. Leven
                                            -----------------------------------------------
                                            Michael A. Leven

                                            /s/ Andrea E. Leven
                                            -----------------------------------------------
                                            Andrea E. Leven

                                            /s/ Jonathan Leven
                                            -----------------------------------------------
                                            Jonathan Leven

                                            /s/ Robert Leven
                                            -----------------------------------------------
                                            Robert Leven

                                            /s/ Adam Leven
                                            -----------------------------------------------
                                            Adam Leven
ROMANIELLO:

                                            /s/ Steven Romaniello
                                            -----------------------------------------------
                                            Steven Romaniello
</TABLE>

                                      7<PAGE>

                                                                  Exhibit 10.6

                         REGISTRATION RIGHTS AGREEMENT

    THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") is made as of June 2,
2000, by and among U.S. FRANCHISE SYSTEMS, INC., a Delaware corporation (the
"CORPORATION"), SDI INC., a Nevada corporation ("SDI", together with its
permitted assignees, collectively, the "INVESTORS"), MERIDIAN ASSOCIATES, L.P.,
an Illinois limited partnership ("MERIDIAN"), HSA PROPERTIES, INC., a Delaware
corporation ("HSA PROPERTIES", and together with Meridian and the Investors,
collectively, the "SECURITYHOLDERS"), and NEAL K. ARONSON ("ARONSON").

                                    RECITALS

    A. Currently, (i) Aronson beneficially owns shares of Common Stock of the
Corporation ("ARONSON SHARES"), and (ii) HSA Properties and Meridian own shares
of Class A Common Stock of the Corporation (the "HSA/MERIDIAN SHARES").

    B.  The Investors have agreed to purchase shares of the Corporation's
Series A 8.5% Cumulative Redeemable Preferred Stock and Series B 6.0% Cumulative
Redeemable Convertible/Exchangeable Preferred Stock (collectively, the "INVESTOR
SHARES", together with the HSA/Meridian Shares, collectively, the
"SECURITYHOLDER SHARES") pursuant to that certain Recapitalization Agreement of
even date herewith among the Corporation and the Securityholders (the
"RECAPITALIZATION AGREEMENT").

    C.  The Corporation deems it desirable to grant registration rights to
(i) Aronson in connection with the Aronson Shares, and (ii) HSA Properties and
Meridian in connection with the HSA/Meridian Shares.

    D. The Corporation deems it desirable to enter into this Agreement in order
to induce the Investors to purchase the Investor Shares pursuant to the
Recapitalization Agreement.

                                   AGREEMENTS

    In consideration of the premises and the mutual covenants herein contained
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

    1.  DEFINITIONS.  As used in this Agreement.

    "Commission" means the Securities and Exchange Commission.

    "Common Stock" means shares of the Corporation's Class A and Class B Common
Stock, each with par value $.01.

    "Exchange Act" means the Securities Exchange Act of 1934, as amended.

    "IPO" means the Corporation's first underwritten public offering of shares
of Common Stock pursuant to a registration statement filed with the Commission.

    "Public Offering" means any offering by the Corporation of its equity
securities to the public pursuant to an effective registration statement under
the Securities Act or any comparable statement under any comparable federal
statute then in effect.

    "Registrable Shares" means at any time (i) any shares of Common Stock then
outstanding which were issued upon conversion of the Investor Shares; (ii) any
shares of Common Stock then issuable upon conversion of the outstanding Investor
Shares; (iii) any shares of Common Stock then outstanding which were issued as,
or were issued directly or indirectly upon the conversion or exercise of other
securities issued as, a dividend or other distribution with respect or in
replacement of any shares referred to in (i) and (ii); (iv) any shares of Common
Stock then issuable directly or indirectly upon the conversion or exercise of
other securities which were issued as a dividend or other distribution with
respect to or in
<PAGE>
replacement of any shares referred to in (i) and (ii); (v) the Aronson Shares,
and (vi) the HSA/Meridian Shares.

    "Securities Act" means the Securities Act of 1933, as amended.

    2.  DEMAND REGISTRATION.

    2.1  REQUESTS FOR REGISTRATION.

    (i) Subject to the terms of this Agreement, the holders of more than 50% of
        the then outstanding Securityholder Shares may, at any time, request
        registration under the Securities Act of all or part of their
        Registrable Shares on Form S-1 or any similar long-form registration or,
        if available, on Form S-2 or S-3 or any similar short-form registration
        (a "DEMAND REGISTRATION"). Such request shall specify the number of
        their Registrable Shares requested to be registered. Within 30 days
        after receipt of any written request pursuant to this SECTION 2.1, the
        Corporation will give written notice of such request to all other
        holders of Registrable Shares and, subject to SECTION 2.3 below, will
        include in such registration all Registrable Shares with respect to
        which the Corporation has received written requests for inclusion within
        30 days after delivery of the Corporation's notice.

    (ii) The holders of the Securityholder Shares will be entitled to request
         three Demand Registrations and the Corporation will pay all
         Registration Expenses (as defined in SECTION 6 below) associated
         therewith. The aggregate offering value of the Registrable Shares
         requested to be registered in any Demand Registration must, in the good
         faith judgment of the holders thereof, equal at least $5,000,000. A
         registration will not constitute one of the permitted Demand
         Registrations until it has become effective (unless such Demand
         Registration has not become effective due solely to the fault of the
         holders requesting such registration and such holders have not
         reimbursed the Corporation for the reasonable expenses associated with
         such registration), the first Demand Registration will not constitute
         one of the permitted Demand Registrations unless the holders of the
         Registrable Shares are able to register and, if such registration is an
         underwritten registration, sell, at least 80% of the Registrable Shares
         requested to be included in such registration, and the second Demand
         Registration will not constitute one of the permitted Demand
         Registrations unless the holders of the Registrable Shares are able to
         register and sell at least 80% of the Registrable Shares requested to
         be included in such registration.

    2.2  RESTRICTIONS.  The Corporation shall not be obligated to effect more
than one Demand Registration in any twelve-month period, and the Corporation
shall not be obligated to effect any Demand Registration within 60 days after
the effective date of a previous offering of Common Stock registered under the
Securities Act. The Corporation may postpone for up to 180 days the filing or
the effectiveness of a registration statement for a Demand Registration if the
Corporation's board of directors determines in its reasonable good faith
judgment that such Demand Registration would reasonably be expected to have a
material adverse effect on any proposal or plan by the Corporation or any of its
subsidiaries to engage in any acquisition (other than in the ordinary course of
business) or any merger, consolidation, tender offer, reorganization or similar
transaction; provided that (a) the Corporation may exercise its right to delay a
Demand Registration only once in any twelve-month period and (b) if a Demand
Registration is delayed hereunder, the holders of Registrable Shares initially
requesting such Demand Registration shall be entitled to withdraw such request
and, if such request is withdrawn, such Demand Registration shall not count as
one of the permitted Demand Registrations hereunder and the Corporation shall
pay all Registration Expenses in connection with such registration.
Notwithstanding anything to the contrary in SECTION 2.1 (iii), (x) the
Corporation may not prevent, delay or postpone any Demand Registration and
(y) the Securityholders shall not be subject to any lockup or similar agreements
following any Demand Registration for more than 270 days during any 360-day
period.

    2.3  PRIORITY.  If both the Registrable Shares held by the Securityholders
and the Aronson Shares are requested to be included in a Demand Registration
which is an underwritten offering and the managing

                                      2
<PAGE>
underwriters advise the Corporation in writing that in their opinion the number
of securities requested to be included exceeds the number of Registrable Shares
which can be sold in such offering, the Corporation will include in such
registration, FIRST, the Regisrable Shares held by the Securityholders requested
to be included in such Demand Registration, pro rata among the holders of such
Registrable Shares on the basis of the number of shares which are owned by such
Securityholders, and SECOND, the Aronson Shares requested to be included in such
Demand Registration.

    2.4  SELECTION OF UNDERWRITERS.  The holders of more than 50% of the
Registrable Shares included in any Demand Registration shall have the right to
select the investment banker(s) and manager(s) to administer the offering,
subject to the Corporation's approval which will not be unreasonably withheld.

    3.  PIGGYBACK REGISTRATION.

    3.1  RIGHT TO PIGGYBACK.  Whenever the Corporation proposes to register,
either for its own account or the account of a security holder or holders, any
of its securities under the Securities Act (other than pursuant to a Demand
Registration hereunder and other than pursuant to a registration statement on
Form S-8 or Form S-4, or their successors) and the registration form to be used
may be used for the registration of any Registrable Shares (a "PIGGYBACK
REGISTRATION"), the Corporation will give prompt written notice to all holders
of the Registrable Shares of its intention to effect such a registration and
will include in such registration all Registrable Shares (in accordance with the
priorities set forth in SECTIONS 3.2 below) with respect to which the
Corporation has received written requests for inclusion within 20 days after the
delivery of the Corporation's notice.

    3.2  PRIORITY ON PIGGYBACK REGISTRATIONS.  If a Piggyback Registration is an
underwritten primary registration on behalf of the Corporation and the managing
underwriters advise the Corporation in writing that in their opinion the number
of securities requested to be included in such registration exceeds the number
which can be sold in such offering, the Corporation will include in such
registration FIRST, the securities that the Corporation proposes to sell,
SECOND, the Registrable Shares held by the Securityholders requested to be
included in such registration, and THIRD, the Aronson Shares requested to be
included in such registration.

    3.3  RIGHT TO TERMINATE REGISTRATION.  The Corporation shall have the right
to withdraw any registration initiated by it under this SECTION 3 prior to the
effectiveness of such registration whether or not any holder of its securities
has elected to include securities in such registration.

    4.  HOLDBACK AGREEMENTS.

    4.1  HOLDERS' AGREEMENTS.  Each holder of Registrable Shares agrees not to
effect any public sale or distribution of equity securities of the Corporation,
or any securities convertible into or exchangeable or exercisable for such
securities during the seven days prior to and during the 90 days following the
effective date of any underwritten Demand Registration or any underwritten
Piggyback Registration in which Registrable Shares are included (except as part
of such underwritten registration) unless the underwriters managing the
registered public offering otherwise agree.

    4.2  CORPORATION'S AGREEMENTS.  The Corporation agrees (i) not to effect any
public sale or distribution of its equity securities, or any securities
convertible into or exchangeable or exercisable for such securities during the
seven days prior to, and during the 90 days following, the effective date of any
underwritten Demand Registration or any underwritten Piggyback Registration
(except as part of such underwritten registration or pursuant to registrations
on Form S-8, Form S-4 or any successor forms) unless the underwriters managing
the registered public offering otherwise agree, and (ii) to use its reasonable
best efforts to cause each holder of at least 1% (on a fully diluted basis) of
its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities to agree not to effect any public sale or
distribution of any such securities during such periods (except as part of such
underwritten registration, if otherwise permitted), unless the underwriters
managing the registered public offering otherwise agree.

                                      3
<PAGE>
    5.  REGISTRATION PROCEDURES.  Whenever the holders of Registrable Shares
have requested that any Registrable Shares be registered pursuant to this
Agreement, the Corporation will use its reasonable best efforts to effect the
registration and sale of such Registrable Shares in accordance with the intended
method of disposition thereof and, pursuant thereto, the Corporation will as
expeditiously as possible:

        5.1  Prepare and file with the Commission a registration statement with
    respect to such Registrable Shares and use its reasonable best efforts to
    cause such registration statement to become effective (provided that before
    filing a registration statement or prospectus, or any amendments or
    supplements thereto, the Corporation will furnish copies of all such
    documents proposed to be filed to the counsel or counsels for the sellers of
    the Registrable Shares covered by such registration statement);

        5.2  Prepare and file with the Commission such amendments and
    supplements to such registration statement and the prospectus(es) used in
    connection therewith as may be necessary to keep such registration statement
    effective for a period of not less than nine months and comply with the
    provisions of the Securities Act with respect to the disposition of all
    securities covered by such registration statement during such period in
    accordance with the intended methods of disposition by the sellers thereof
    set forth in such registration statement;

        5.3  Furnish to each seller of Registrable Shares such number of copies
    of such registration statement, each amendment and supplement thereto, the
    prospectus(es) included in such registration statement (including each
    preliminary prospectus) and such other documents as such seller may
    reasonably request in order to facilitate the disposition of the Registrable
    Shares owned by such seller;

        5.4  Use its reasonable best efforts to register or qualify such
    Registrable Shares under such other securities or blue sky laws of such
    jurisdictions as any seller reasonably requests and do any and all other
    acts and things which may be reasonably necessary or advisable to enable
    such seller to consummate the disposition in such jurisdictions of the
    Registrable Shares owned by such seller (provided that the Corporation will
    not be required to (i) qualify generally to do business in any jurisdiction
    where it would not otherwise be required to qualify but for this
    subparagraph, (ii) subject itself to taxation in any such jurisdiction, or
    (iii) consent to general service of process in any such jurisdiction);

        5.5  Notify each seller of such Registrable Shares, at any time when a
    prospectus relating thereto is required to be delivered under the Securities
    Act, of the happening of any event as a result of which the prospectus
    included in such registration statement contains an untrue statement of a
    material fact or omits any fact necessary to make the statements therein not
    misleading, and, at the request of any such seller, the Corporation will
    prepare a supplement or amendment to such prospectus so that, as thereafter
    delivered to the Securityholders of such Registrable Shares, such prospectus
    will not contain any untrue statement of a material fact or omit to state
    any fact necessary to make the statements therein not misleading;

        5.6  Cause all such Registrable Shares to be listed on each securities
    exchange on which similar securities issued by the Corporation are then
    listed;

        5.7  Provide a transfer agent and registrar for all such Registrable
    Shares not later than the effective date of such registration statement;

        5.8  Enter into such customary agreements (including underwriting
    agreements in customary form) and take all such other actions as the holders
    of a majority of the Registrable Shares being sold or the underwriters, if
    any, reasonably request in order to expedite or facilitate the disposition
    of such Registrable Shares;

        5.9  Make available for inspection by any seller of Registrable Shares,
    any underwriter participating in any disposition pursuant to such
    registration statement, and any attorney, accountant or other agent retained
    by any such seller or underwriter, all financial and other records,
    pertinent

                                      4
<PAGE>
    corporate documents and properties of the Corporation, and cause the
    Corporation's officers, directors, employees and independent accountants to
    supply all information reasonably requested by any such seller, underwriter,
    attorney, accountant or agent in connection with such registration
    statement;

        5.10  Advise each seller of such Registrable Shares, promptly after it
    shall receive notice or obtain knowledge thereof, of the issuance of any
    stop order by the Commission suspending the effectiveness of such
    registration statement or the initiation or threatening of any proceeding
    for such purpose and promptly use all reasonable efforts to prevent the
    issuance of any stop order or to obtain its withdrawal if such stop order
    should be issued;

        5.11  Unless shorter notice is necessary under the circumstances, at
    least forty eight (48) hours prior to the filing of any registration
    statement or prospectus, or any amendment or supplement to such registration
    statement or prospectus, furnish a copy thereof to each seller of such
    Registrable Shares and refrain from filing any such registration statement,
    prospectus, amendment or supplement to which counsel selected by the holders
    of a majority of the Registrable Shares being registered shall have
    reasonably objected on the grounds that such document does not comply in all
    material respects with the requirements of the Securities Act or the
    rules and regulations thereunder, unless, in the case of an amendment or
    supplement, in the opinion of counsel for the Corporation the filing of such
    amendment or supplement is reasonably necessary to protect the Corporation
    from any liabilities under any applicable federal or state law and such
    filing will not violate applicable laws; and

        5.12  At the request of any seller of such Registrable Shares in
    connection with an underwritten offering, furnish on the date or dates
    provided for in the underwriting agreement, an opinion of counsel, addressed
    to the underwriters and, to the extent permissible under applicable
    accounting rules, the sellers of Registrable Shares, covering such matters
    as such underwriters and, sellers may reasonably request, including such
    matters as are customarily furnished in connection with an underwritten
    offering; and (ii) a letter or letters from the independent certified public
    accountants of the Corporation addressed to the underwriters and the sellers
    of Registrable Shares, covering such matters as such underwriters and
    sellers may reasonably request, in which letter(s) such accountants shall
    state, without limiting the generality of the foregoing, that they are
    independent certified public accountants within the meaning of the
    Securities Act and that in their opinion the financial statements and other
    financial data of the Corporation included in the registration statement,
    the prospectus(es), or any amendment or supplement thereto, comply in all
    material respects with the applicable accounting requirements of the
    Securities Act.

    6.  REGISTRATION EXPENSES.

    6.1  CORPORATION'S EXPENSES.  All expenses incident to the Corporation's
performance of or compliance with this Agreement, including without limitation
all registration and filing fees, fees and expenses of compliance with
securities or blue sky laws, printing expenses, messenger and delivery expenses,
and fees and disbursements of counsel for the Corporation and all independent
certified public accountants, underwriters (excluding discounts and commissions)
and other persons retained by the Corporation (all such expenses being herein
called "Registration Expenses"), will be borne by the Corporation.

    6.2  HOLDER'S EXPENSES.  Notwithstanding anything to the contrary contained
herein, each holder of Registrable Shares will pay all attorney fees and
disbursements for counsel they retain in connection with the registration of
Registrable Shares, except that the Corporation will reimburse the holders of
Registrable Shares for the reasonable fees and disbursements of one counsel
chosen by the holders of more than 50% of such Registrable Shares in connection
with a Demand Registration.

    7.  INDEMNIFICATION.

    7.1  BY THE CORPORATION.  The Corporation agrees to indemnify, to the extent
permitted by law, each holder of Registrable Shares, its managers, officers and
directors and each person who controls such

                                      5
<PAGE>
holder (within the meaning of the Securities Act) against all losses, claims,
damages, liabilities and expenses (including without limitation, attorney's
fees) caused by any untrue or alleged untrue statement of material fact
contained in any registration statement, prospectus or preliminary prospectus,
or any amendment thereof or supplement thereto, or any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, except insofar as the same are caused by
or contained in any information furnished in writing to the Corporation by such
holder expressly for use therein or by such holder's failure to deliver a copy
of the registration statement or prospectus or any amendments or supplements
thereto after the Corporation has furnished such holder with a sufficient number
of copies of the same. In connection with an underwritten offering, the
Corporation will indemnify such underwriters, their officers and directors and
each person who controls such underwriters (within the meaning of the Securities
Act) to the same extent as provided above with respect to the indemnification of
the holders of Registrable Shares. The payments required by this SECTION 7.1
will be made periodically during the course of the investigation or defense, as
and when bills are received or expenses incurred.

    7.2  BY EACH HOLDER.  In connection with any registration statement in which
a holder of Registrable Shares is participating, each such holder will furnish
to the Corporation in writing such information and affidavits as the Corporation
reasonably requests for use in connection with any such registration statement
or prospectus and, to the extent permitted by law, will indemnify the
Corporation, its directors and officers and each person who controls the
Corporation (within the meaning of the Securities Act) against any losses,
claims, damages, liabilities and expenses resulting from any untrue or alleged
untrue statement of material fact contained in the registration statement,
prospectus or preliminary prospectus, or any amendment thereof or supplement
thereto, or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, but
only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder; provided that
the obligation to indemnify will be several, not joint and several, among such
holders of Registrable Shares and the liability of each such holder of
Registrable Shares will be in proportion to and limited to the net amount
received by such holder from the sale of Registrable Shares pursuant to such
registration statement.

    7.3  PROCEDURE.  Any person entitled to indemnification hereunder will
(i) give prompt written notice to the indemnifying party of any claim with
respect to which it seeks indemnification and (ii) unless in such indemnified
party's reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. If such defense is assumed, the
indemnifying party will not be subject to any liability for any settlement made
by the indemnified party without its consent (but such consent will not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable judgment
of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such
claim.

    7.4  SURVIVAL.  The indemnification provided for under this Agreement will
remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified party or any officer, director or controlling person
of such indemnified party and will survive the transfer of securities. The
Corporation also agrees to make such provisions as are reasonably requested by
any indemnified party for contribution to such party in the event the
Corporation's indemnification is unavailable for any reason.

    8.  COMPLIANCE WITH RULE 144.  In the event that the Corporation
(a) registers a class of securities under Section 12 of the Exchange Act,
(b) issues an offering circular meeting the requirements of Regulation A under
the Securities Act, or (c) commences to file reports under Section 13 or
15(d) of the Exchange Act, then at the request of any holder who proposes to
sell securities in compliance with Rule 144 of the Commission, the Corporation
will (i) forthwith furnish to such holder a written statement

                                      6
<PAGE>
of compliance with the filing requirements of the Commission as set forth in
Rule 144, as such rule may be amended from time to time, and (ii) make available
to the public and such holders such information as will enable the holders to
make sales pursuant to Rule 144.

    9.  PARTICIPATION IN UNDERWRITTEN REGISTRATIONS.  No person may participate
in any registration hereunder which is underwritten unless such person
(a) agrees to sell its securities on the basis provided in any underwriting
arrangements approved by such person or persons entitled hereunder to approve
such arrangements, and (b) completes and executes all questionnaires, powers of
attorney, custody agreements, indemnities, underwriting agreements and other
documents reasonably required under the terms of such underwriting arrangements.

    10.  MISCELLANEOUS.

    10.1  NO INCONSISTENT AGREEMENTS.  The Corporation will not hereafter enter
into any agreement with respect to its securities which is inconsistent with the
rights granted to the holders of Registrable Shares in this Agreement.

    10.2  ADJUSTMENTS AFFECTING REGISTRABLE SHARES.  The Corporation will not
take any action, or permit any change to occur, with respect to its securities
which would adversely affect the ability of the holders of Registrable Shares to
include such Registrable Shares in a registration undertaken pursuant to this
Agreement or which would adversely affect the marketability of such Registrable
Shares in any such registration, including, without limitation, effecting a
stock split or combination of shares.

    10.3  OTHER REGISTRATION RIGHTS.  Except as provided in this Agreement, the
Corporation will not hereafter grant to any person or persons the right to
request the Corporation to register any equity securities of the Corporation, or
any securities convertible or exchangeable into or exercisable for such
securities, without the prior written consent of the holders of more than 50% of
the Registrable Shares, which consent may not be unreasonably withheld or
delayed if and to the extent such right is subordinate to the rights of the
holders of Registrable Shares. The Corporation will not include in any Demand
Registration any securities which are not Registrable Shares (for the purposes
of SECTION 2) unless and until all Registrable Shares requested to be registered
have first been so included.

    10.4  SUCCESSORS AND ASSIGNS.  Except as otherwise expressly provided
herein, all covenants and agreements contained in this Agreement by or on behalf
of any of the parties hereto will bind and inure to the benefit of the
respective successors and assigns of the parties hereto, whether so expressed or
not. In addition, and whether or not any express assignment has been made, the
provisions of this Agreement which are for the benefit of the Purchaser or
holders of Registrable Shares are also for the benefit of, and enforceable by,
any subsequent holders of such Registrable Shares.

    10.5  SEVERABILITY.  Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or
invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
this Agreement.

    10.6  DESCRIPTIVE HEADINGS.  The descriptive headings of this Agreement are
inserted for convenience of reference only and do not constitute a part of and
shall not be utilized in interpreting this Agreement.

    10.7  NOTICES.  Any notices required or permitted to be sent hereunder shall
be delivered personally or mailed, certified mail, return receipt requested, or
delivered by overnight courier service to the following addresses, or such other
address as any party hereto designates by written notice to the Corporation, and
shall be deemed to have been given upon delivery, if delivered personally, three
days

                                      7
<PAGE>
after mailing, if mailed, or one business day after delivery to the courier, if
delivered by overnight courier service:

    If to the Corporation, to:

       U.S. Franchise Systems, Inc.
       13 Corporate Square, Ste. 250
       Atlanta, Georgia 30329
       Attention: General Counsel

    If to the Securityholders, to:

       SDI, Inc.
       200 West Madison, Suite 3800
       Chicago, IL 60606
       Attention: Douglas G. Geoga

    with a copy to:

       Katten Muchin & Zavis
       525 West Monroe Street
       Suite 1600
       Chicago, Illinois 60661
       Attention: Bruce Wilson, Esq.

    If to Aronson, to:

       Neal K. Aronson

    10.8  GOVERNING LAW.  All questions concerning the construction, validity
and interpretation of this Agreement, and the performance of the obligations
imposed by this Agreement, shall be governed by the laws of the State of Georgia
applicable to contracts made and wholly to be performed in that state.

    10.9  FINAL AGREEMENT.  This Agreement, together with the Stock Purchase
Agreement and all other agreements entered into by the parties hereto pursuant
to the Stock Purchase Agreement, constitutes the complete and final agreement of
the parties concerning the matters referred to herein, and supersedes all prior
agreements and understandings.

    10.10  EXECUTION IN COUNTERPARTS.  This Agreement may be executed in any
number of counterparts, each of which when so executed and delivered shall be
deemed an original, and such counterparts together shall constitute one
instrument.

    10.11  NO STRICT CONSTRUCTION.  The language used in this Agreement will be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be used against any party.

                                      8
<PAGE>
    The parties hereto have executed this Agreement on the date first set forth
above.

                                          THE CORPORATION:

                                          U.S. FRANCHISE SYSTEMS, INC.

                                          By: /s/ Stephen D. Aronson
                                             -----------------------------------

                                          Its: Vice President/General Counsel
                                             -----------------------------------

                                          SECURITYHOLDERS

                                          MERIDIAN ASSOCIATES, L.P.

                                          By: /s/ H.S. Handelsman
                                             -----------------------------------

                                          Its: Vice President
                                             -----------------------------------

                                          HSA PROPERTIES, INC.

                                          By: /s/ H.S. Handelsman
                                             -----------------------------------

                                          Its: Vice President
                                             -----------------------------------

                                          SDI, INC.

                                          By: /s/ H.S. Handelsman
                                             -----------------------------------

                                          Its: Vice President
                                             -----------------------------------

                                          NEAL K. ARONSON

                                          /s/ Neal K. Aronson
                                          --------------------------------------
                                          NEAL K. ARONSON

                                      9

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