Red Roof Inn vs Reverb hotel by Hard Rock Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Reverb hotel by Hard Rock including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$203,500 - $5,456,700 | $15,445,000 - $37,020,000 |
Franchise Fee |
$30,000 | N/A |
Royalty Fee |
4.5% | - |
Advertising Fee |
4%(Marketing & Reservation Fee) | - |
Year Founded |
1967 | - |
Year Franchised |
1996 | - |
Term Of Agreement |
20 years | - |
Term Of Agreement |
20 years | - |
Renewal Fee |
50% of current franchise fee | - |
Business Experience Requirements |
Experience |
General business experience | - |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | -/- |
Start-up Costs |
No/Yes | -/- |
Equipment |
No/Yes | -/- |
Inventory |
No/Yes | -/- |
Receivables |
No/Yes | -/- |
Payroll |
No/Yes | -/- |
Training & Support |
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 Platform | - |
Marketing |
Co-op Advertising
Ad Templates
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) | - |
Expansion Plans |
US Expansion |
Yes | Yes |
Canada Expansion |
No | - |
International Expansion |
Yes | Yes |
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.
#66 in Franchise 500 for 2020.
#134 in Franchise 500 for 2021.
About Reverb hotel by Hard Rock
Hard Rock Hotel Licensing, Inc. offers franchises for the operation of
an upscale, select-service hotel that operates under the name “Reverb.”
If you purchase a single franchised Hotel, the total investment
necessary to begin operation of a Reverb franchise ranges from
$15,445,000 to $37,020,000. This includes an amount ranging from
$151,000 to $415,000 that must be paid to the franchisor and their
affiliates.
If you purchase area development rights, the total investment necessary
to begin operation of a Reverb franchise ranges from $15,445,000 to
$37,020,000, plus an additional deposit fee that is calculated as:
$50,000 for the 2nd Hotel you will develop under the area development
agreement, plus $12,500 per Hotel for your 3rd and each additional Hotel
you will commit to develop under the area development agreement. This
includes an amount ranging from $151,000 to $415,000, plus the total amount of the
deposit fee, that must be paid to the franchisor and their affiliates.