Red Roof Franchising
Full FDD datacomputed, never sold
Beyond the filing
Everything else on this page is quoted from Red Roof Franchising's franchise disclosure document. This is not — it is measured off the open web, it is not verified by the franchisor, and it never affects the Factbook Score.
Research this brand properly
Every figure on this page comes from Red Roof Franchising's own disclosure filings, source linked. Compare it against its category before any discovery call — and read the FDD with an attorney before signing anything.
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A hospitality franchise. Its official site emphasizes: For both conversions and new builds. If you’re an economy hotel franchise, Red Roof is here for you. With constant support. Proven results. And some of the lowest fees in the industry.
From Red Roof Franchising's official site, condensed by an independent research pass on August 10, 2026 — marketing description, not a filed fact. Source.
Red Roof Inn | Red Roof Franchising
What it really costs
Every cost figure this brand's filing discloses — not just the headline range
| Expense | Low | High |
|---|---|---|
| Initial franchise fee | $10,000 | $10,000 |
| Total initial investment | $7,253,500 | $8,899,600 |
Item 7 reports a total range, not a full line-item breakdown, in this brand's filing excerpt — the franchise fee is the only cost we can show separately today.
Costs more to open than 62% of hospitality franchises on this site with a disclosed Item 7 range (49 compared). Computed from total investment, not a figure from the filing itself.
Earnings disclosure
Does the franchisor share performance data? No
This brand's filing does not include an Item 19 financial performance representation. That's common — a large share of franchisors disclose nothing here — but it means you should ask for unit-level economics directly during discovery calls. Compare against hospitality brands that do disclose one.
Legal history
Openings, closures & reacquisitions
The numbers ranking sites don't show — straight from the brand's filings
Tell me when Red Roof Franchising files something new
Franchisors refile every year, and fees, investment ranges and closure counts move between filings. We'll email you when this brand's figures change — nothing else, and never a sales sequence.
Common questions
Answered from this brand's own FDD filing. Where the filing is silent, the question is left out rather than answered with a guess.
How much does a Red Roof Franchising franchise cost?
Red Roof Franchising's most recent Franchise Disclosure Document puts the total estimated initial investment at $7.3M–$8.9M. That is Item 7, which covers everything needed to open — the franchise fee, build-out, equipment, opening inventory and initial working capital. The initial franchise fee itself is $10,000, and is included in that range.
What royalty does Red Roof Franchising charge?
Red Roof Franchising charges a continuing royalty of 5% of gross sales, disclosed in Item 6. Royalties are charged on revenue, not profit, so they are owed whether or not the outlet is profitable.
Does Red Roof Franchising disclose earnings (Item 19)?
No. Red Roof Franchising makes no financial performance representation in its FDD. Item 19 is the only optional item under the FTC Franchise Rule, so omitting it is lawful and common — but it means the franchisor publishes no revenue or profit figures for its outlets, and any figure quoted elsewhere is not from the filing.
How many Red Roof Franchising locations closed?
In its most recent reported year (2025), Red Roof Franchising opened 74, closed 8, terminated 42 franchised outlets, ending the year with 1192. Averaged over three years, 4.3% of the system turned over annually — outlets closed, terminated, not renewed or reacquired. These counts come from Item 20, which every franchisor must file.
Profile changelog
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