<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM U.S.
FRANCHISE SYSTEMS, INC. CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS
ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                                     1,000
       
                             
<PERIOD-TYPE>                                    6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          21,501
<SECURITIES>                                         0
<RECEIVABLES>                                        0
<ALLOWANCES>                                        27
<INVENTORY>                                          0
<CURRENT-ASSETS>                                28,948
<PP&E>                                           2,998
<DEPRECIATION>                                     280
<TOTAL-ASSETS>                                  83,894
<CURRENT-LIABILITIES>                            7,799
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           491<F1>
<OTHER-SE>                                      68,804
<TOTAL-LIABILITY-AND-EQUITY>                    83,894
<SALES>                                          4,090
<TOTAL-REVENUES>                                 4,090
<CGS>                                                0
<TOTAL-COSTS>                                    7,279
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 749
<INCOME-PRETAX>                                (3,110)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (3,110)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (3,110)
<EPS-PRIMARY>                                   (0.20)<F2>
<EPS-DILUTED>                                   (0.20)<F2>
<FN>
<F1>INCLUDES 3,186,280 SHARES OF CLASS A COMMON STOCK THAT ARE REDEEMABLE UNDER
CERTAIN CIRCUMSTANCES BY THE COMPANY FOR REASONS NOT UNDER THE COMPANY'S
CONTROL.
<F2>PER SHARE AMOUNTS ARE DETERMINED BY DIVIDING LOSS APPLICABLE TO COMMON
STOCKHOLDERS BY WEIGHTED AVERAGE SHARES OUTSTANDING. WEIGHTED AVERAGE SHARES
INCLUDE REDEEMABLE COMMON SHARES OUTSTANDING. LOSS APPLICABLE TO COMMON
STOCKHOLDERS REPRESENT NET LOSS ADJUSTED FOR DIVIDENDS ON THE REDEEMABLE 
PREFERRED STOCK.
</FN>