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Below is an in-depth analysis and side-by-side comparison of Hospitality vs Red Roof Inn including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $133,600 - $2,602,000 | $203,500 - $5,456,700 |
Franchise Fee | $5,000 - $15,000 | $30,000 |
Royalty Fee | $35/rm/night | 4.5% |
Advertising Fee | - | 4%(Marketing & Reservation Fee) |
Year Founded | 1971 | 1967 |
Year Franchised | 1982 | 1996 |
Term Of Agreement | 5 years | 20 years |
Term Of Agreement | 5 years | 20 years |
Renewal Fee | - | 50% of current franchise fee |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/Yes |
Payroll | No/No | No/Yes |
Training & Support |
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Training | Classroom Training: 10.5 hours Additional Training: At regional training seminars | On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform |
Marketing | Ad Templates Regional Advertising Social media Website development Email marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
Operations |
50% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Number of Employees Required to Run: 10 10% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | Yes | No |
International Expansion | Yes | Yes |