La Quinta

According to the offering circular, the Affiliation Fee and estimated initial investment are as follows:

La Quinta Inn New Construction (Prototypical Facility-100 Guest Rooms)
Affiliation Fee Formula: $400 per Guest Room
Minimum: $40,000
Estimated Initial Investment: $4,670,300 to $6,219,800

La Quinta Inn or La Quinta Inn & Suites conversions (Estimated at 60 to 100 Guest Rooms)
Affiliation Fee Formula: $400 per Guest Room
Minimum: $40,000, $45,000 for La Quinta Inn & Suites
Estimated Initial Investment: $213,300 to $2,543,300

La Quinta Inn & Suites new construction (Prototypical Facility - 106 Guest Rooms)
Affiliation Fee Formula: $400 per Guest Room
Minimum: $45,000
Estimated Initial Investment: $5,440,100 to $7,098,300

The offering circular also states that the application fee is $5,000. It is non-refundable once the franchisee’s application is approved and will be credited toward the Affiliation Fee. The franchisor will also pay an initial fee of $2,000 for licenses to use the reservations and property management computer system plus travel and shipping costs, which is included in the $22,000 to $45,000 the franchisee must pay to acquire computer hardware and software and receive installation of and training services for the reservations and property management system. In addition, the offering circular states that the franchisee must pay the following initial training fees: Owner's Orientation Training Program: $500/person; Opening Training Program: $3,500, plus expenses, an initial fee of $250 for installation of certain credit card interfacing software and setting up the franchisee’s hardware, and the costs of all pre-opening facility inspections beyond one, which the franchisor provides without additional charge. Finally, the franchisor states that it may also charge a fcc of up to $2,000 to review the franchisee’s interior design package, if it is not the franchisor’s standard package.