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Red Roof Inn

As described in the offering circular, Red Roof Inn offers high quality lodging to business and leisure guests at room rates associated with the economy lodging segment.

The offering circular states that applicants are required to pay an application fee of $3,000. This fee is non-refundable if the applicant is rejected, except when the franchisor does not visit the area surrounding the applicant’s site or if the applicant has not been provided architectural or technical assistance. If the application is approved, the franchisor states that the application fee may be counted toward the initial franchise fee.

The initial franchise fee is $30.000, as stated in the offering circular. However, if the franchisee’s Inn fails the pre-opening readiness visit, the franchisee will be assessed a re-visit fee of $2,500. The offering circular states that the Franchisee must also pay the following fees: $500 for Owner's Orientation, $1,800 for Manager's Training, $3,650 as a Software license fee and $3,000 for training on the Computer System.

The offering circular also requires the franchisee to purchase certain items to be used at the Inn. The approximate cost for these items, based on a new 71-room Inn, is $204,000. If an existing facility is converted to a Red Roof Inn, the offering circular states that the franchisee may be required to pay a renovation assistance fee ranging from $5,000 to $30,000.

The estimated initial investment for a new 71-room Red Roof Inn, as stated by the offering circular, ranges from approximately $2,970,600 to $3,586,150. These ranges include initial franchise fees but do not include the cost of real estate.

Red Roof Inn's Franchise Resources

UFOC 5-9 11-12 17-19

Disclaimer

Red Roof Inn News

09/02 The Worst Way to See San Antonio - New York Times (blog)
09/02 Man steals safe from Arlington Heights motel - Chicago Daily Herald
09/02 Police log for Sept. 2, 2010 - Chronicle-Telegram
09/01 Glendale Man Accused of Rape at Hotel - WKRC TV Cincinnati
08/31 Red Roof Inn robbed at gunpoint - The State Journal-Register

GOLDSTEIN, P.O. Box 1707, Leesburg, VA 20177 MAIN: 202-293-3947 FAX: 202-315-2514