Red Roof Inn vs Choice Hotels Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Choice Hotels including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Red Roof Inn Franchise
Choice Hotels Franchise
Investment $203,500 - $5,456,700$88,050 - $13,166,100
Franchise Fee $30,000$10,000 - $60,000
Royalty Fee 4.5%Varies
Advertising Fee 4%(Marketing & Reservation Fee)Varies
Year Founded 19671939
Year Franchised 19961962
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 50% of current franchise fee-


Business Experience Requirements
 
Red Roof Inn Franchise
Choice Hotels Franchise
Experience
  • General business experience

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    Red Roof Inn Franchise
    Choice Hotels Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Red Roof Inn Franchise
    Choice Hotels Franchise
    Training On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops -
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op advertising, Ad slicks, National media, Regional advertising
    Operations 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)

    		 Franchisees required to buy multiple units/master licenses

    Absentee ownership of franchise is allowed.

    Expansion Plans
     
    Red Roof Inn Franchise
    Choice Hotels Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Red Roof Inn

    Congratulations! You have made the first step in learning more about how you can join the Red Roof family. Here you will learn how you're making a smart decision by choosing to become a Red Roof franchisee. A Smart-By-Design Franchise Opportunity, A Red Roof franchise has been an extraordinarily positive experience from almost all standpoints; customer service, design help, purchasing efficiencies, brand loyalty and, most importantly, reservations. The brand has consistently performed extremely well in good and bad economic times and often punched above its weight and rate. Brand changes are always done by considering franchisee needs while ensuring the customer gets the most value for their money. The company has also been very adaptive changing customer demographics and has adapted both its physical plant and virtual image to appeal to a broad cross section of travelers. 98% of current Red Roof franchisees would recommend a Red Roof franchise to other entrepreneurs. Red Roof is securely positioned in the upper-end of the economy segment with RevPARs currently averaging 21% higher than competing economy hotels in the markets in which we compete. Our Smart-by-Design approach to franchising is evident in everything we do, from exciting new prototypes and conversion plans to day-to-day operations training. We focus on the details that keep our guests coming back and our franchisees successful. With a seasoned management team and a focus on the success of one outstanding brand, Red Roof is truly redesigned and rededicated to become the best franchise opportunity in the economy segment.

    "Entrepreneur

    #66 in Franchise 500 for 2020.
    #134 in Franchise 500 for 2021.


    About Choice Hotels

    A group of Southern motel owners got together in 1939 to discuss the state of the lodging industry, hoping to do something to change the negative opinion the public had about motels (FBI director J. Edgar Hoover had warned that motels were used as bases of operations by gangsters). owners set about to create a set of quality standards for motels and agreed to publish the names of establishments that complied with these standards. In 1940, the group officially named itself Quality Courts United Inc. In 1990, Quality became known as Choice Hotels International Inc. The hotels in the chain now include Sleep, Comfort, Quality, Clarion, Rodeway, Econo Lodge and Cambria.

    "Top     ""
    #29 in Canada's Top franchises.