Franchise analysis
Red Roof Inn
Red Roof Franchising, LLC offers franchises for hotels under the names Red Roof Inn, Red Roof Inn & Suites, Red Roof PLUS+, and Red Roof PLUS+ & Suites. Franchisees operate hotels using the Red Roof Inn system and Reservation Platform Prope…
Category
Hospitality & Travel
Total initial investment
$6,007,500 - $8,899,600
Franchise fee
$12,000 - $27,000
Ongoing fees
Royalty: 5.0% • Ad fund: 4.0%
Related guides
Learn the key concepts, risks, and evaluation frameworks relevant to this franchise.
What is an FDD and how to read it
A guided tour of the Franchise Disclosure Document so you know where to look for fees, risks, and performance.
How to read Item 19 financials
How to interpret earnings claims, sample sizes, averages vs medians, and what is missing in Item 19.
Understanding the total investment required
How to go beyond the headline numbers in the FDD to estimate real all in costs including working capital.
Red flags to watch for in an FDD
Twelve patterns in disclosure documents that experienced buyers treat as serious warning signs.
Questions to ask existing franchisees
A practical checklist for calls with current operators so you hear what the FDD cannot tell you.