Franopolis

    s Red Roof Inn

    Franchise research report · reviewed 2025 disclosure data

    Reviewed sources

    MN Filing 33494-202504-08: You will own and operate a Red Roof Inn, Red Roof Inn & Suites, Red Roof PLUS+ or Red Roof PLUS+ & Suites lodging facility.

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    s Red Roof Inn quick facts

    Is s Red Roof Inn a franchise?
    Yes. s Red Roof Inn offers franchises through a Franchise Disclosure Document. At the end of 2024, it reported 584 franchised and 35 company-owned outlets (2025 FDD, Item 20, PDF p. 71).
    How much does it cost to open a s Red Roof Inn franchise?
    The s Red Roof Inn Franchise Disclosure Document reports separate estimated initial investments by format: $6,007,500–$7,394,600 for table 2 — 82-room new-build red roof plus+ — estimated total investment (2025 FDD, Item 7, PDF p. 29); $6,035,500–$7,425,600 for table 3 — 82-room new-build red roof plus+ & suites — estimated total investment (2025 FDD, Item 7, PDF p. 30); $328,000–$1,659,100 for conversion only (table 7 — 65-room conversion red roof plus+ — estimated total investment) (2025 FDD, Item 7, PDF p. 39); $332,000–$1,695,600 for conversion only (table 8 — 65-room conversion red roof plus+ & suites — estimated total investment) (2025 FDD, Item 7, PDF p. 40); $259,000–$1,596,100 for conversion only (table 6 — 65-room conversion red roof inn/red roof inn & suites — estimated total investment) (2025 FDD, Item 7, PDF p. 38); $7,253,500–$8,899,600 for table 1 — 82-room new-build red roof inn/red roof inn & suites — estimated total investment (2025 FDD, Item 7, PDF p. 27). These formats are not combined. Each is the franchisor's disclosed estimate, not a quote. Details
    What ongoing fees does s Red Roof Inn charge?
    The disclosed ongoing royalty is 5% (2025 FDD, Item 6, PDF p. 17). The brand or advertising fund contribution is 4% (2025 FDD, Item 6, PDF p. 17). Other recurring fees are listed in Item 6. Details
    Does s Red Roof Inn disclose financial performance (Item 19)?
    Yes. The s Red Roof Inn FDD includes an Item 19 financial performance representation (2025 FDD, Item 19, PDF p. 66). Figures apply only to the locations and period each one covers. Details
    How many s Red Roof Inn locations are there?
    The FDD reports 619 outlets at the end of 2024 (2025 FDD, Item 20, PDF p. 71). Existing locations do not indicate territory availability. Details
    Is s Red Roof Inn a good franchise to buy?
    Franopolis does not rate or recommend franchises. From the reviewed FDD: Item 19 includes financial performance figures; check which locations and period they cover; Item 20 lists outlet openings, closures and transfers; Item 6 includes a brand or advertising fund contribution on top of royalty; Item 20 also lists current and former franchisees you can contact. Review the full FDD with a franchise attorney and accountant before deciding.

    From reviewed FDD figures only. Not a recommendation or projection.

    What the disclosures show

    1. 1The 2025 FDD (Item 7) estimates opening costs separately by format: $6,007,500 – $7,394,600 (Table 2 — 82-room new-build Red Roof PLUS+ — estimated total investment); $6,035,500 – $7,425,600 (Table 3 — 82-room new-build Red Roof PLUS+ & Suites — estimated total investment); $328,000 – $1,659,100 (Table 7 — 65-room conversion Red Roof PLUS+ — estimated total investment); $332,000 – $1,695,600 (Table 8 — 65-room conversion Red Roof PLUS+ & Suites — estimated total investment); $259,000 – $1,596,100 (Table 6 — 65-room conversion Red Roof Inn/Red Roof Inn & Suites — estimated total investment); $7,253,500 – $8,899,600 (Table 1 — 82-room new-build Red Roof Inn/Red Roof Inn & Suites — estimated total investment); several initial fee options apply.
    2. 2Item 19 covers 12 separate groups: other measures for 35 locations; other measures for 541 locations; other measures for 584 locations; other measures for 619 locations; other measures for 22 locations; other measures for 56 locations; other measures for 78 locations; other measures for 13 locations; other measures for 528 locations; other measures for 35 locations; other measures for 584 locations; other measures for 619 locations. They are not combined.
    3. 3Outlets grew by 13 in 2024, to 619 (Systemwide, as labeled in the FDD, Item 20).

    From reviewed FDD figures only. Not a recommendation or projection.

    Franchises under $500kOther brands whose disclosed Item 7 low end fits this budget.Compare outlet trendsPut Item 20 counts side by side with up to 3 other brands.

    s Red Roof Inn head-to-head

    Closest peers in the same subcategory, side by side from reviewed FDD figures. Not a ranking or recommendation.

    s Red Roof InnVSRegus
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    s Red Roof InnVSEOS Worldwide
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    s Red Roof InnVSThe Entrepreneur's Source
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    s Red Roof InnVSExpense Reduction Analysts
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    Costs · Items 5–7

    What does it cost to open?

    Estimated opening costs and the fees payable to the franchisor.

    Startup Investment — Item 7

    Range across 6 single-unit formats

    2025 FDD · Item 7

    Formats disclosed in Item 7 (9)

    Each format has its own total. The total depends on the format you choose; multi-unit packages are listed but not included in the headline range.

    • Table 6 — 65-room conversion Red Roof Inn/Red Roof Inn & Suites — estimated total investmentPDF p. 38$259,000 – $1,596,100
    • Table 7 — 65-room conversion Red Roof PLUS+ — estimated total investmentPDF p. 39$328,000 – $1,659,100
    • Table 8 — 65-room conversion Red Roof PLUS+ & Suites — estimated total investmentPDF p. 40$332,000 – $1,695,600
    • Table 2 — 82-room new-build Red Roof PLUS+ — estimated total investmentPDF p. 29$6,007,500 – $7,394,600
    • Table 3 — 82-room new-build Red Roof PLUS+ & Suites — estimated total investmentPDF p. 30$6,035,500 – $7,425,600
    • Table 1 — 82-room new-build Red Roof Inn/Red Roof Inn & Suites — estimated total investmentPDF p. 27$7,253,500 – $8,899,600
    • Table 9 — 120-room conversion dual-brand Red Roof Inn/HomeTowne Studios — estimated total investmentMulti-unitPDF p. 42$693,268 – $2,284,813
    • Table 4 — 140-room new-build Red Roof Inn/HomeTowne Studios dual-brand — estimated total investmentMulti-unitPDF p. 32$12,552,583 – $14,819,155
    • Table 5 — 140-room new-build Red Roof PLUS+/HomeTowne Studios dual-brand — estimated total investmentMulti-unitPDF p. 34$12,571,483 – $14,843,155

    Ongoing Fees — Item 6

    Selected recurring charges; payment bases and conditions remain attached to each fee.

    Royalty feeMain ongoing fee

    118 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.

    Financial Performance — Item 19

    What results are disclosed—and for which locations?

    12 separate populations, shown apart. Revenue is not owner income.

    35 locations

    Other measures · 35 locations

    Who is counted
    Affiliate-Owned Red Roof Inn and Red Roof PLUS+ Inns
    Period
    Average Brand Contribution
    Excluded
    The 2024 performance period is January 1 through December 31; Inns were operating at least one year and temporary closures were less than 90 days. 34 franchised Inns opened in 2024 are excluded; 10 previously Affiliate-Owned Inns sold to franchisees during 2024 are included.
    Method
    Average results, count and percentage of Inns meeting/exceeding average results, and median results are reported in Item 19.

    These groups are never combined.

    Outlet Changes — Item 20

    How has the outlet count changed?

    Systemwide, as labeled in the FDD · counts as of December 31, 2024 of each year.

    2025 FDD · Item 20 · PDF p. 71

    Net +22 outlets, 2022–2024

    0597202260620236192024+9+13

    Year-end counts reported in Item 20. The scale starts at zero, so the line looks nearly flat; the labels between the dots show each year's change. Openings and closures for 2024 haven't been pulled from the Item 20 tables yet, so no turnover or churn is shown.

    Questions to investigate

    Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.

    For the franchisor

    • Which line items in the 2025 Item 7 estimate ($259,000 – $8,899,600) vary most by market, and why?

    • Which initial fee option would apply to my situation, and what conditions or discounts affect it?

    • Which locations are included in the Item 19 figures, and which were excluded?

    • Reported units went from 606 to 619 in 2024. How many new units opened, closed or changed hands?

    • Is a territory available in my area, and how is it defined in my agreement?

    For current and former owners

    • How did your actual startup costs and timeline compare with the Item 7 estimate?

    • How many hours a week do you work in the business, and in what role?

    • How do your results compare with the Item 19 figures, and what explains the difference?

    • What support from the franchisor has been most and least useful?

    For your advisors

    • Ask a franchise attorney to review the territory, renewal, transfer and termination terms.

    • Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.

    Sources & vintage history

    Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.

    Citations (2025 FDD)

    1. [1]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned Red Roof Inn and Red Roof PLUS+ Inns · PDF p. 66; PDF p. 70
    2. [2]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned and franchised Red Roof Inns · PDF p. 70; PDF p. 69
    3. [3]Item 19 — Locations counted not stated in the reviewed record — Franchised Red Roof Inn and Red Roof PLUS+ Inns · PDF p. 67
    4. [4]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned and franchised Red Roof Inn and Red Roof PLUS+ Inns · PDF p. 67
    5. [5]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned Red Roof PLUS+ Inns · PDF p. 67; PDF p. 68
    6. [6]Item 19 — Locations counted not stated in the reviewed record — Franchised Red Roof PLUS+ Inns · PDF p. 68
    7. [7]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned and franchised Red Roof PLUS+ Inns · PDF p. 68
    8. [8]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned Red Roof Inns · PDF p. 69
    9. [9]Item 19 — Locations counted not stated in the reviewed record — Franchised Red Roof Inns · PDF p. 69
    10. [10]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned Inns · PDF p. 70
    11. [11]Item 19 — Locations counted not stated in the reviewed record — Franchised Inns · PDF p. 70
    12. [12]Item 19 — Locations counted not stated in the reviewed record — Affiliate-Owned and Franchised Inns · PDF p. 70
    13. [13]Outlet counts — Item 20, Table 1 · PDF p. 71

    "PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page.

    Territory & operations

    These are contract disclosures, not confirmation that any territory is currently available.

    Legal & agreement

    Franchisor financial statements

    Fiscal yearMeasureReported value
    2024net income$15,530,521
    2024net cash provided by operating activities$13,379,196
    2024net cash used in investing activities-$935,874
    2024net cash used in financing activities-$22,415,038
    2024net change in cash and equivalents-$9,971,716
    2024cash and cash equivalents$22,445,012
    2024total assets$50,622,911
    2024total liabilities$24,002,422
    2024cash and cash equivalents, end of period$22,445,012
    2024revenue$91,958,435
    2024total expenses$71,673,607
    2024income before income taxes$20,929,326

    These figures describe the franchisor company, not individual franchise locations.

    SBA-backed loans to franchisees

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    Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.

    Related research

    Brands in the same subcategory first, then the wider industry, ordered by shared business format, overlapping investment range, Item 20 outlet count and search interest. This is not a ranking or recommendation.

    RegusEOS WorldwideThe Entrepreneur's SourceExpense Reduction AnalystsPatrice and AssociatesBNI

    Head-to-head comparisons

    s Red Roof Inn vs Reguss Red Roof Inn vs EOS Worldwides Red Roof Inn vs The Entrepreneur's Sources Red Roof Inn vs Expense Reduction Analystss Red Roof Inn vs Patrice and Associatess Red Roof Inn vs BNI
    Compare reviewed facts

    At a glance

    Business history

    Not reviewed

    Owner participation

    Not reviewed

    Territory language

    Litigation disclosure

    Not reviewed

    Bankruptcy disclosure

    Not reviewed

    Agreement term

    Not reviewed

    Reader notes on wording

    Our automated check found that these summaries may not match the FDD's exact wording. Read the FDD excerpt itself; it is the authoritative text. Core cost, fee, Item 19 and outlet figures are not affected.

    • Item 7 · PDF p. 32 · 2025 FDD

      Our summary: Table 4 — 140-room new-build Red Roof Inn/HomeTowne Studios dual-brand — estimated total investment

      “TOTAL (excludes land acquisition costs) $12,552,583 $14,819,155”

      Note: The cited quote could not be located on the cited FDD page.

    • Item 7 · PDF p. 34 · 2025 FDD

      Our summary: Table 5 — 140-room new-build Red Roof PLUS+/HomeTowne Studios dual-brand — estimated total investment

      “TOTAL (excludes land acquisition costs) $12,571,483 $14,843,155”

      Note: The cited quote could not be located on the cited FDD page.

    • Item 7 · PDF p. 41 · 2025 FDD

      Our summary: Table 9 — Red Roof Inn Reservation Platform/PMS computer systems

      “Red Roof Inn Reservation Platform / PMS Software License Fee and Computer Systems including Front Desk and Back-Office (Note 10) $16,500 $22,000”

      Note: The cited quote could not be located on the cited FDD page.

    • Item 20 · PDF p. 71 · 2025 FDD

      Our summary: Franchised 2023: 546 → 561

      “Franchised Outlets 2023 546 561 +15”

      Note: The cited page does not establish the Table 1 systemwide start/end row.

    • Item 20 · PDF p. 71 · 2025 FDD

      Our summary: Company-Owned 2024: 45 → 35

      “Affiliate – Owned Outlets 2024 45 35 -10”

      Note: The cited page does not establish the Table 1 systemwide start/end row.

    • Item 20 · PDF p. 71 · 2025 FDD

      Our summary: Company-Owned 2023: 51 → 45

      “Affiliate – Owned Outlets 2023 51 45 -6”

      Note: The cited page does not establish the Table 1 systemwide start/end row.

    • Item 20 · PDF p. 71 · 2025 FDD

      Our summary: Franchised 2024: 561 → 584

      “Franchised Outlets 2024 561 584 +23”

      Note: The cited page does not establish the Table 1 systemwide start/end row.

    Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.

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