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Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Super 8 including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $203,500 - $5,456,700 | $233,200 - $4,834,492 |
Franchise Fee | $30,000 | $25,000 - $28,000 |
Royalty Fee | 4.5% | 5.5% |
Advertising Fee | 4%(Marketing & Reservation Fee) | 3% |
Year Founded | 1967 | 1974 |
Year Franchised | 1996 | 1976 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | 50% of current franchise fee | - |
Business Experience Requirements |
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Experience | Developer, owner, or real estate group with hospitality experience, credit and financial approval, and acceptable background check. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | Yes/No |
Start-up Costs | No/Yes | Yes/No |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | Yes/Yes |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops | A comprehensive suite of learning opportunities designed to help you run your business. Our hands-on curriculum includes: General Manager Orientation: Our GM orientation (Strategic Training for Exceptional Performance - S.T.E.P.) is a 5 day program which focuses on the brand tools and resources designed to optimize your business’s performance. We provide year round training to all owners and will tailor your training for your needs. On-The-Job Training: 3-4 days Classroom Training: 4 days Additional Training: Regional workshops; customized property training |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op Advertising National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app |
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) |
International franchisees required to buy multiple units/master licenses
Absentee ownership of franchise is allowed. |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
Super 8's name is derived from its unique room rate- - $8.88 every night- - when the principal area opened in 1974 in Aberdeen, South Dakota.