Red Roof Inn franchise research

Investment by format

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

Investment sourceFDD p.27 ↗

Franchise fees and ongoing costs

Franchise fee

$12,000 to $27,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

5% · 5% of Gross Room Revenues, payable 20 days after invoice date

Marketing contribution

4% (basis not captured; see original filing)

Technology fee

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

Other fees

RediRewards Preferred Member Program fee (4% of Gross Room Revenues from program members, cap 5%); Booking Fees ($6.60-$7.00/GDS booking, $3.30-$3.60/OTA booking, $1.99-$2.25/direct connect); Revenue Management Software fee (0.3% of Gross Room Revenues, $100-$400/month)

Working capital (FDD Item 7)

$112,000 to $154,000 for 3 months, payable to vendors and employees as incurred

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.27 ↗

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 (Revenue per Available Room), and Brand Contribution percentage; no gross sales dollar figures or profit/EBITDA metric disclosed

Reporting period

January 1, 2025 through December 31, 2025

Sample

594 total Inns (567 franchised: 508 Red Roof Inns + 59 Red Roof PLUS+; plus 27 Affiliate-Owned Inns), open and operating at least one year with temporary closures under 90 days; 29 franchised Inns opened in 2025 excluded

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.65 ↗

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

584

Year-end outlets

596

Net change

+12

Derivation

ending minus starting outlets

Openings

37

Terminations

21

Non-renewals

0

Other closures

4

Reacquisitions

0

Transfers

26

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.71 ↗

SBA loan history

Loan activity

141 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$2,645,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

59 loans

Historical charge-off share

1.02%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

2 / 197

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 Red Roof Inn franchise cost?

New build Red Roof Inn / Red Roof Inn & Suites (82 rooms): $7,253,500 to $8,899,600; New build Red Roof PLUS+ (82 rooms): $7,267,500 to $8,923,100; New build Red Roof PLUS+ & Suites (82 rooms): $7,267,500 to $8,293,100; New build Dual Brand Hotel - Red Roof Inn & HomeTowne Studios (140 rooms): $13,569,518 to $15,836,090; New build Dual Brand Hotel - Red Roof PLUS+ & HomeTowne Studios (140 rooms): $13,588,418 to $15,860,090 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $12,000 to $27,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.27 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Red Roof Inn 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 (Revenue per Available Room), and Brand Contribution percentage; no gross sales dollar figures or profit/EBITDA metric disclosed. Sample: 594 total Inns (567 franchised: 508 Red Roof Inns + 59 Red Roof PLUS+; plus 27 Affiliate-Owned Inns), open and operating at least one year with temporary closures under 90 days; 29 franchised Inns opened in 2025 excluded. Period: January 1, 2025 through December 31, 2025.

Item 19 performance sourceFDD p.65 ↗

What's the SBA charge-off rate for Red Roof Inn?

1.02%; numerator / denominator: 2 / 197. 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: $2,645,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 59 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗