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General

Industry

-

Category

Travel and Hospitality

SBA Identifier

S1373

Year of Founding

1963

Fees

Marketing Fee

Varies

Royalty Fee

5%

Franchise Fee

$45,000-$45,000

Investment Range

$286K-$1.82M

Location units

Total U.S. Locations

1697

U.S. Franchised Units

1697

U.S. Corporate Units

0

Headquarters (City)

MD

Other

Item 19 - Franchise Financials

-

Financing Availability

yes

Started Offering Franchises

1968

Issuance of FDD Data

04/01/2021

What to know about Quality Inn franchise?

The franchise offered in this disclosure document is for the rights to own and/or operate a QUALITY INN, QUALITY INN & SUITES, QUALITY SUITES, QUALITY HOTEL or QUALITY RESORT ("QUALITY") hotel business.

Quality Inn is based in Rockville, MD. Scroll down to learn more!

How Much Does a Quality Inn Franchise Cost?

Are you wondering how much is a Quality Inn franchise? Before starting a Quality Inn franchise, it is important to know the Quality Inn franchise fee ($45,000) working capital and other costs required to start the business.

The minimum investment amount required to open a Quality Inn franchise is $286,000 and can go all the way up to $1,815,595. Keep in mind, you should also allocate additional funds to live off of while the Quality Inn business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Quality Inn franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Quality Inn business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Quality Inn franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Quality Inn. Hotels to the Cleaning and Maintenance, Outdoor Maintenance industry.

Franchise Data

Year Start of year Units Opened Units Closed Total End of Year
2016 1379 146 78 1447
2017 1447 150 55 1542
2018 1542 139 45 1636
2019 1636 105 53 1688
2020 1688 57 48 1697

Additional Details

How much does a Quality Inn franchise owner make?

Quality Inn franchise earnings and revenue can vary significantly from one franchisee to another. The Quality Inn franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Quality Inn discloses financials at the unit level. In other words, they show how much Quality Inn franchisees made in the past. Through analyzing this information available in the metrics tab, it can serve as a good basis to further explore the opportunity or not.

At Vetted Biz, we advise you to speak with 5 to 10 franchisees to understand how much money they are making from the Quality Inn franchise. Roughly 60% of franchises disclose financials and it makes the process easier when filtering potential franchise opportunities like Quality Inn. Don’t just speak to existing franchisees, call franchisees who have recently left the system and try to find out how much those Quality Inn owners were making.

Visit the Quality Inn metrics tab, to explore the financials for this business.

What is the Quality Inn Franchise Fee?

Owning a Quality Inn franchise requires a 5% royalty fee and a variable marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship.

Keep in mind, there is also an initial Quality Inn franchise fee of $45,000 that is included in the initial investment amount of $286,000 to $1,815,595. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Quality Inn franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Quality Inn franchise fee of $45,000.

Visit the Quality Inn metrics tab to explore how the franchise, royalty and marketing fees compare to other Travel and Hospitality franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Quality Inn founded?

Quality Inn was founded 59 years ago in 1963. Quality Inn started offering franchises in 1968. At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Quality Inn locations are in the U.S.?

As of Issuance of 2021, there were 1697 Quality Inn locations owned and operated by franchisees across the U.S. There are also 0 corporate locations owned and operated by Quality Inn. Most Travel and Hospitality franchises like Quality Inn have more franchised locations than corporate locations.

How many Quality Inn franchises opened over the past few years?

Over the prior 3 years we have data for, Quality Inn has opened 301 outlets throughout the U.S.

Visit the Quality Inn metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

How many Quality Inn franchises closed over the past few years?

Over the prior 3 years we have data for, Quality Inn has closed 146 outlets throughout the U.S.

Visit the Quality Inn metrics tab to explore how the closures compare to other Travel and Hospitalityfranchises.

Is Quality Inn growing? Are they opening more locations than they are closing?

The net unit growth rate for Quality Inn over the past 3 years is 10%. Over the last year we have data for, Quality Inn had a net unit growth rate of 1%.

Without a comparison, this number doesn’t mean much. Compare how the Quality Inn growth rate compares to 2,000+ other franchises and Travel and Hospitality franchises like Quality Inn. More info in the Quality Inn metrics tab.

Is Quality Inn franchise eligible for an SBA Loan?

Quality Inn is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Quality Inn franchise was assigned the SBA Franchise ID of S1373 on 10/1/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Quality Inn that are reviewed and found eligible under SBA's affiliation rules and other eligibility criteria.

Is Quality Inn a franchise in the United States?

According to the SBA, Quality Inn meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Quality Inn provides you with an FDD if you are in discussion to buy a Quality Inn.

What is the Quality Inn Franchise for Sale Rate?

The Quality Inn systemwide health and franchisee satisfaction can be measured by the Quality Inn franchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

The franchise for sale rate for Quality Inn over the past 3 years is 20%. Over the last year we have data for, Quality Inn had a franchise for sale rate of 4%.

Without a comparison, this number doesn’t mean much. Compare how the Quality Inn franchise for sale rate compares to 2,000+ other franchises and Travel and Hospitality franchises like Quality Inn. More info in the Quality Inn metrics tab.

What is the Quality Inn Franchise Failure Rate?

Quality Inn franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Quality Inn failure rate over the past 3 years is 9%. Over the last year we have data for, Quality Inn had a franchise failure rate of 3%

Without a comparison, this number doesn’t mean much. Compare how the Quality Inn failure rate compares to 2,000+ other franchises and Travel and Hospitality franchises like Quality Inn. More info in the Quality Inn metrics tab.

How can I find out more details on Quality Inn franchise?

Visit the Quality Inn metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today for exclusive access on this franchise opportunity!

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General

Industry

-

Category

Travel and Hospitality

SBA Identifier

S1373

Year of Founding

1963

Fees

Marketing Fee

Varies

Royalty Fee

5%

Franchise Fee

$45,000-$45,000

Investment Range

$286K-$1.82M

Location units

Total U.S. Locations

1697

U.S. Franchised Units

1697

U.S. Corporate Units

0

Headquarters (City)

MD

Other

Item 19 - Franchise Financials

-

Financing Availability

yes

Started Offering Franchises

1968

Issuance of FDD Data

04/01/2021

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Quality Inn

3%

3%

Industry median

All franchises median

Unlock premium content

Franchise Disclosure Document

Download Latest FDD (2021)

Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Quality Inn

3%

9%

Industry median

All franchises median

Unlock premium content

Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Quality Inn

7%

20%

Industry median

All franchises median

Unlock premium content

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Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Quality Inn

$1,050,798

Industry median

All franchises median

Unlock premium content

Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Quality Inn

5%

Industry median

All franchises median

Unlock premium content

Franchise Fee Midpoint

The percentage change of total franchise units from one year to the next

 

1 year

3 years

Quality Inn

3%

3%

Industry median

All franchises median

Unlock premium content

Item 19 – Financial Performance Representations

Historical financial performance representations

Unlock premium content

Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

Unlock premium content

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Business details

Company name

-

Business email

development@choicehotels.com

Mailing address

1 Choice Hotels Circle, Suite 400

State headquarters

Maryland

Key leadership

Quality Inn

Phone

+1 (000) 000-00-00

City

Rockville

Zip code

20850

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