Red Roof Inn vs AFM Hospitality Corporation Franchise Comparison

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

Start-Up Costs and Fees
 
Red Roof Inn Franchise
AFM Hospitality Corporation Franchise
Investment $203,500 - $5,456,700$2,000,000 - $20,000,000
Franchise Fee $30,000$35,000
Royalty Fee 4.5%3%
Advertising Fee 4%(Marketing & Reservation Fee)4%
Year Founded 19671991
Year Franchised 19961992
Term Of Agreement 20 years5/5/5/5 Years
Term Of Agreement 20 years5/5/5/5 Years
Renewal Fee 50% of current franchise fee-


Business Experience Requirements
 
Red Roof Inn Franchise
AFM Hospitality Corporation Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Red Roof Inn Franchise
    AFM Hospitality Corporation Franchise
      In-House/3rd PartyIn-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
     
    Red Roof Inn Franchise
    AFM Hospitality Corporation Franchise
    Training On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops On-Site 3-5 Days
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet PlatformCentral Data Processing:

    Central Purchasing:

    Field Operation Evaluation:

    Field Training:

    Initial Store Opening:

    Franchisee Newsletter:

    Regional or National Meetings:

    800 Telephone Hotline:

    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
     
    Red Roof Inn Franchise
    AFM Hospitality Corporation Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion 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.

    "Entrepreneur

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


    About AFM Hospitality Corporation

    AFM is dedicated to being the best in hospitality services, nationwide. Wherever possible, the services we provide have been centralized, allowing the company to capitalize on economies of scale. All brands receive full training, quality assurance and franchise service support provided by a team of industry experts. The growth strategy for the company has been developed by a team of professionals, each with a specific area of expertise in the hospitality trade.