Red Roof Inn is a hotel brand providing budget-friendly lodging options for both business and leisure travelers. The franchise provides quality accommodations at affordable prices.
Key Insights
- The Red Roof Inn brand originated from a vision to provide comfortable and affordable lodging, evolving into a recognized name in the hospitality sector known for its consistent service and accessible locations across the country. The business has a history of adapting to traveler needs and expanding its footprint.
- Operations at Red Roof Inn are streamlined to deliver a reliable guest experience with a focus on cleanliness and essential amenities. The franchise model supports franchisees with established operational guidelines and brand recognition, contributing to efficient property management and a predictable guest offering.
- The lodging industry is a dynamic sector characterized by diverse traveler segments and fluctuating demand. Red Roof Inn operates within the economy and midscale segments, catering to a broad customer base seeking value and convenience.
Franchise Fee and Costs to Open
Exploring the financial picture of Red Roof Inn gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $7,253,500 - $8,899,600, along with a franchise fee of $30,000 - $30,000.
Financial Performance and Revenue
Training and Resources
Red Roof Inn provides comprehensive initial training for new franchisees. This program, typically lasting two weeks, takes place at the Red Roof Inn corporate headquarters. The franchisor offers extensive resources to support franchisees in opening and operating their hotel. Red Roof Inn recommends utilizing all available training modules and resources for a successful launch.
Legal Considerations
Legal considerations for a Red Roof Inn franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Franchisees may encounter considerations regarding local market competition, requiring strategic positioning to attract guests. The operational complexity of managing staff, guest services, and property maintenance demands efficient systems. Reliance on specific supply chains for amenities and maintenance may also present logistical considerations that influence cost and availability.
Franchise Datasheet
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