<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from U.S.
Franchise Systems, Inc. consolidated financial statements for the nine months
ended September 30, 1998 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          19,221
<SECURITIES>                                         0
<RECEIVABLES>                                        0
<ALLOWANCES>                                        42
<INVENTORY>                                          0
<CURRENT-ASSETS>                                26,991
<PP&E>                                           3,381
<DEPRECIATION>                                     383
<TOTAL-ASSETS>                                  83,854
<CURRENT-LIABILITIES>                            6,738
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           491<F1>
<OTHER-SE>                                      69,007
<TOTAL-LIABILITY-AND-EQUITY>                    83,854
<SALES>                                          7,444
<TOTAL-REVENUES>                                 7,444
<CGS>                                                0
<TOTAL-COSTS>                                   10,445
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 761
<INCOME-PRETAX>                                (3,001)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (3,001)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (3,001)<F2>
<EPS-PRIMARY>                                   (0.18)<F2>
<EPS-DILUTED>                                   (0.18)
<FN>
<F1>Includes 3,128,473 (net of 58,807 shares in treasury) 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 accreted on the
redeemable preferred stock.
</FN>