HomeTowne Studios by Red Roof franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.28 ↗

Franchise fees and ongoing costs

Franchise fee

$10,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5.5% · 5.5% of Gross Room Revenues, payable 20 days after invoice date

Marketing contribution

3% (basis not captured; see original filing)

Technology fee

$490/month plus $3.85/room/month for Reservation Platform/PMS, help desk, and hardware/software support (may increase up to 5% annually)

Other fees

RediRewards Preferred Member Program fee (2% of Gross Room Revenues from members, max 5%); Revenue Management Software fee (0.3% of Gross Room Revenues, $100-$400/mo min-max); Desktop Protection and Maintenance Fee ($200-$250/device annually)

Working capital (FDD Item 7)

$112,000 to $154,000

Fees sourceFDD p.17 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.28 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median Daily Room Rate, Occupancy Rate, RevPAR, and Brand Contribution %, plus RevPAR Index vs. STR compset; no gross sales dollar figures or profitability/EBITDA figures disclosed

Reporting period

January 1, 2025 through December 31, 2025

Sample

78 hotels open and operating at least one year during 2025 (27 Affiliate-Owned + 51 franchised); excludes 2 franchised hotels that opened in 2025

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.64 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

45

Year-end outlets

53

Net change

+8

Derivation

ending minus starting outlets

Openings

9

Terminations

1

Non-renewals

0

Other closures

0

Reacquisitions

0

Transfers

7

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.67 ↗

SBA loan history

Loan activity

13 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$4,654,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

8 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 0

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does HomeTowne Studios by Red Roof franchise cost?

Standard new build, 124-room (HomeTowne Studios by Red Roof, HomeTown Inn, or HomeTowne Inn): $11,734,393 to $14,457,291; New build, 124-room (HomeTowne Studios & Suites by Red Roof): $11,894,393 to $14,857,291; Dual Brand new build, 140-room (Red Roof Inn + HomeTowne Studios): $13,569,518 to $15,836,090; Dual Brand new build, 140-room (Red Roof PLUS+ + HomeTowne Studios): $13,588,418 to $15,860,090 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $10,000 to $30,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.28 ↗

Franchise fee sourceFDD · page not captured ↗

How much do HomeTowne Studios by Red Roof owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median Daily Room Rate, Occupancy Rate, RevPAR, and Brand Contribution %, plus RevPAR Index vs. STR compset; no gross sales dollar figures or profitability/EBITDA figures disclosed. Sample: 78 hotels open and operating at least one year during 2025 (27 Affiliate-Owned + 51 franchised); excludes 2 franchised hotels that opened in 2025. Period: January 1, 2025 through December 31, 2025.

Item 19 performance sourceFDD p.64 ↗

What's the SBA charge-off rate for HomeTowne Studios by Red Roof?

Suppressed: fewer than 10 seasoned loans; numerator / denominator: 0 / 0. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $4,654,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 8 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗