Quick Verdict · who it fits
Red Roof Inn fits first-time franchise buyers looking for a mature hospitality concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$7.3M - $15.8M
Franchise fee (Item 5)
$27K
Royalty (Item 6)
5% + 4% ad
System size (Item 20)
596 +37
Years in business
19+ yrs
Item 3 litigation
3 suits
Model Red Roof Inn's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 5% + ad fund 4% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (5%)
—
Ad fund (4%)
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Total / year
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▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
623
Total units open
596 franchised + 27 affiliate-owned as of December 31, 2025
37 franchised units opened in 2025
Units opened last year
25 franchised units closed/terminated in 2025
Units closed last year
12 franchised units
Net unit growth
584 to 596
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
How Red Roof Inn ranks against 80 Hospitality & Travel peers we've analyzed.
Initial investment
71st pct · of 80 peers
Franchise fee
31st pct · of 80 peers
System size
89th pct · of 80 peers
Hospitality & Travel industry averages
Avg investment
$7.6M - $24.8M
Avg franchise fee
$42K
Avg system size
244
Franchises analyzed
80
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Red Roof Inn | Disclosed | $27K | $7.3M - $15.8M | 5% | 596 |
| Dollar Rent a CarSimilar price | Disclosed | $25K | $879K - $15.9M | 6–8% | 66 |
| CpBiggest system | Disclosed | $11K | $2K - $21K | 1.5–3% | 3,124 |
| TaTop-rated in category | None | $140K | $1.5M - $14.1M | 2–4.5% | 33 |
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Free explainers to go deeper before you sign.
Brand Analysis
Enterprise Mobility operates corporately in seven countries, including the United States, and franchises only in other international markets. The car rental brands a US buyer can actually franchise are Avis, Budget, and Hertz, and all three filed a 2026 FDD with no earnings disclosure in it.
Brand Analysis
Partly. Hertz System, Inc. franchises in the United States, but 390 of the 2,946 US outlets in its 2026 disclosure document were franchised and 2,556 were company-owned. The filing prices a new location at $879,300 to $16,249,000, charges 9% of gross receipts at airports and 7% off-airport, and makes no earnings claim at all.
Brand Analysis
The 2026 Brew Culture Franchise, LLC disclosure reports a $2,550,624 median across 297 franchised stands against a $940,500 to $2,283,500 investment, a ten-store minimum commitment, and a closed application window.
Red Roof Inn requires a $27,000 initial franchise fee and a total initial investment range of $7,253,500–$15,836,090, per the most recent FDD on file.
Red Roof Inn is franchised by Red Roof Franchising, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Yes. Red Roof Inn discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.
Franchisees pay a royalty of 5% and an advertising fund contribution of 4% of Gross Room Revenues on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Red Roof Inn has 596 total locations, with 37 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
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