- Franchise 500 Rank
-
N/R Not ranked last year
- Initial investment
-
$259K - $14.6M
- Units as of 2023
-
601 0.7% over 3 years
The first Red Roof was founded in 1972 in Columbus, Ohio. By 1996, the first Red Roof franchise location was opened, and since then, the brand has grown to more than 500 locations across the United States. Guests may enjoy standard and luxury amenities such as a kitchenette, free Wi-Fi, laundry, dining table, chairs, and more.
With over 45 years in the hostel hospitality industry, Red Roof believes it knows how to host guests.
Why You May Want To Start a Red Roof Franchise
With four brands of hotels under the Red Roof name, franchisees pick which type of franchise they would like to open. The four brands include Red Roof Inn, Red Roof Plus+, The Red Collection, and HomeTowne Studios by Red Roof. Additionally, franchisees can choose to build or convert an existing property to a Red Roof location. This type of flexibility may allow the franchisee to make their location their own.
If you choose to franchise with Red Roof, be prepared for ample franchise support from company headquarters, which are located in Columbus, Ohio. Franchisees have access to the Red Roof franchise advisory council to produce superior guest and franchisee experiences. Support may include management expertise, branding supplies, revenue management, training, mobile websites, and increased distribution channels, and more.
An ideal franchisee is committed to the Red Roof company values with the guests’ comfort at the center of their hotel. While experience in the hotel industry is not required, it is recommended and may be seen as a strength when entering the franchising process.
What Might Make a Red Roof Inn Franchise a Good Choice?
Opening a Red Roof franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.
As you decide if opening a Red Roof franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Red Roof franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Red Roof may allow you to operate your franchise as an absentee owner. This could afford you the opportunity to be hands-off, delegating work and serving as your own boss. This may also allow you to spend more time with your family and friends, doing what you want to do, while still running a business.
How To Open a Red Roof Franchise
To be part of the Red Roof team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Red Roof franchising team questions.
Company Overview
About Red Roof
Business Overview
Franchising Since | 1996 (29 years) |
---|---|
# of employees at HQ | 199 |
Where seeking |
This company is offering new franchises throughout the US. This company is offering new franchises worldwide. |
# of Units | 601 (as of 2023) |
|
Information for Franchisees
Here's what you need to know if you're interested in opening a Red Roof franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
|
$30,000 |
---|---|
Initial Investment
|
$259,000 - $14,643,155 |
Royalty Fee
|
5% |
Ad Royalty Fee
|
4% |
Term of Agreement
|
20 years |
Is franchise term renewable? | Yes |
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
On-The-Job Training | 9 hours |
---|---|
Classroom Training | 24 hours |
Ongoing Support |
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
|
Marketing Support |
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App
|
Operations
Additional details about running this franchise.
Is absentee ownership allowed? | No |
---|---|
Can this franchise be run from home/mobile unit?
|
No |
Can this franchise be run part time?
|
No |
# of employees required to run | 10 |
Are exclusive territories available?
|
No |
Franchise 500 Ranking History
Compare where Red Roof landed on this year's Franchise 500 Ranking versus previous years.
Sign Up for Our Franchise Newsletter
Stay up to date on the latest news and trends affecting the franchise industry.
Related Franchises
Are you eager to see what else is out there? Browse franchises that are similar to Red Roof.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
This Travel Franchise Turns Your Passion for Vacations Into a Money-Making Opportunity
Whether you're working from home, traveling or connecting with clients at their convenience, this franchise adapts to your lifestyle.
Franchise Models Explained — How to Choose the Right One for Your Goals
Navigating the franchise world starts with understanding key business models. Here's how project-based and subscription franchises differ in investment, scalability, and recession resistance.
Setting the Standard — When Disaster Strikes, This Top Franchise Is Making a Difference
Servpro's success is built on a foundation of expertise, technology, and a commitment to helping franchisees thrive.
This Franchise Lets You Tap Into the $1.7 Trillion Insurance Industry — And Doesn't Require Any Specialized Experience
Estrella Insurance has built a strong reputation for offering a wide range of insurance products, from auto and home to business and health insurance.
The Fitness Industry Is Worth $260 Billion — Here's the Franchise That's Leading the Pack
Crunch Fitness, #1 in the Franchise 500 health and wellness category, is redefining getting in shape.
Buying or Selling a Business? This Top-Ranked Franchise Makes the Intimidating Process Straightforward.
With a proven system and a global network, Transworld Business Advisors makes business transactions easier for everyone involved.