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Below is an in-depth analysis and side-by-side comparison of Red Roof Inn vs Downtowner Inns 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 | $133,600 - $2,602,000 |
Franchise Fee | $30,000 | $6,000 - $16,000 |
Royalty Fee | 4.5% | 3% |
Advertising Fee | 4%(Marketing & Reservation Fee) | 2.5% |
Year Founded | 1967 | 1982 |
Year Franchised | 1996 | 1982 |
Term Of Agreement | 20 years | - |
Term Of Agreement | 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/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/Yes | -/- |
Payroll | No/Yes | -/- |
Training & Support |
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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 | Hospitality International's Marketing Team works in concert with the Franchise Development Team for the purpose of finding new resources to attract new guests and to retain the current guest base of our franchised locations. In addition, the two teams collaborate to discover creative and cost effective ways to promote Hospitality International's five brands to encourage brand recognition and loyalty. Increasing Reservations is a key component of the Marketing Department's responsibility. Therefore, Corporate Discount Programs, Advertising and E-commerce efforts all combine to support and enhance our Reservation Services. |
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 |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
Downtowner Inns and Downtowner Inns & Suites are generally limited service facilities in city centers or downtown locations that seek an economy level room rate.