Red Roof Inn Franchise
Thursday, April 22, 2010 at 11:45PM Economy business lodging
Congratulations! You have made the first step in learning more about how you can join the Red Roof family. On this site 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 franchise business owners 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 franchise business owners 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.
Start-up Costs & Franchises Fees
What is the total cost to open a Red Roof Inn Franchises?
Total Cost: $2,600,000 USD -$4,750,000 USD
Total Franchise Fees: $30,000 USD
Ongoing Royalty Fees: 4.5%
Ongoing Advertising Fees: 4%(Marketing & Reservation Fee)
Term of Agreement: 20 years
Franchise Agreement Renewal Fee: 50% of current franchise fee
Contact Information for Red Roof Inn
|
Red Roof Franchising, LLC |
Phone Number: (888) 473-8861 |
Red Roof Inn In the Press
No results at this time.Historical Expansion
In what year did Red Roof Inn begin operations? 1967
When did Red Roof Inn begin selling franchises? 1996
Year United States Canada International Corporate 2007 124 0 0 221 2006 105 0 0 230 2005 96 0 0 245 2004 103 0 0 247 2003 95 0 0 254 2002 99 0 0 260 2001 90 0 0 260 2000 72 0 0 257
Franchise Financing Information
Cost In House Financing Available? 3rd Party Financing Available? Franchise Fee No Yes Initial Start-up Capital No Yes Plant, Property, and Equipment No Yes Inventory No Yes Accounts Receivable No No Payroll No No 3rd Party Financing Available? Financing Source(s): various sources
Training & Support
Support
In the Pressletter, Meetings, Grand opening support, Internet referrals, Safety and Security procedures, Field support and site evaluation, Purchasing cooperatives
Marketing
National public relations campaign, integrated online campaign (search, banner, mobile), collateral design, promotions
Franchise Operation Restrictions
10% of all franchise business owners own more than one franchise location.
Absentee ownership of franchise is allowed. (60% of current franchise business owners are owner/operators)
Qualifications & Business Experience
Business Experience:
General business experience
Franchise Analyzer Professional's Inside Information
Can you buy this franchise for no money down? YesPlease note: You must download a free copy of Franchise Analyzer Professional to receive these benefits and so much more. Click here to download your FREE copy now.
What key terms in the franchise agreement can be negotiated? Cross-default provisions, arbitration clause, personal guarantee, default cure periods, non-compete agreement, favorable valuations for corporate buyout
Can you negotiate lower royalties during start-up? Yes
Can you purchase multiple franchises for a discounted franchise fee? Yes
Can you receive lower advertising fees? Yes
Will I know when the franchise break even? Yes
Will my personal assets including my home be safe in case my franchise business fails? Yes