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QUALITY INN

QUALITY INN

Choice Hotels International, Inc. franchises mid-scale hotels under the QUALITY INN brand family, including QUALITY INN, QUALITY INN & SUITES, QUALITY SUITES, QUALITY HOTEL, and QUALITY RESORT, providing comfortable accommodations with amenities like free breakfast, high-speed internet, in-room coffee, and personal service. The business model supports both new construction and conversion of existing hotels into franchised properties. It targets business and leisure travelers seeking value-oriented, mid-scale lodging options.

Since 1968Hospitality & LodgingNorth Bethesda, MDchoicehotelsdevelopment.com
Item 19 AvailableSBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$316,945 - $2,045,895
Franchise Fee
$45,000
Locations
1,621

Financial Requirements

Franchise Fee$45,000
Initial Investment Range$316,945 - $2,045,895
Royalty Rate5.25%
Brand Fund3.50%
Fixed Monthly Fees$892 - $1,353

5.25% royalty + 3.5% marketing & reservation fee + $519-$855/mo choiceADVANTAGE support + $235-$360/mo ChoiceMAX + $60/mo CrowdStrike + $60/mo CHOC dues + $18/mo ECM

Franchise Stats

Franchise Locations1,621
Corporate Locations0
States Operating51
Franchising Since1968
FDD Year2025

Financial Performance

Item 19 Financial Performance

Data Based On: 1,528 franchised QUALITY hotels that were open and operating as of December 31, 2024 and met the definition of the Performance Sample.

* The document provides performance metrics such as Average Occupancy Rate, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR) for franchised hotels, along with contribution percentages. However, it does not provide the total gross revenue per franchise unit (hotel) in dollar amounts. RevPAR and ADR are per-room metrics, and without additional data like the average number of rooms per hotel, it is not possible to derive average gross revenue per unit. Furthermore, the document explicitly states that the financial performance representations do not reflect costs of sales, operating expenses, or other costs/expenses required to obtain net income or profit. Therefore, net income, net profit, EBITDA, and profit range estimates cannot be determined from the provided information.

Extracted Item 19 Section

How QUALITY INN Compares to Other Hotels Franchises

Key Insights

  • Lower investment than 76% of Hotels franchises
  • #1 largest franchise system in Hotels
  • Lower than average SBA loan default rate in Hotels
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
QUALITY INN
Current
$317K - $2.0M$45K5.3%1,621
SUPER 8$4.7M - $6.9M$25K5.5%1,375
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES$7.6M - $9.4M$35K5.5%1,235
LA QUINTA INN & SUITES$12.8M - $17.2M$55K5.5%884
RED ROOF PLUS AND SUITES$7.3M - $8.9M$27K5.0%584
BAYMONT INN & BAYMONT INN & SUITES$7.6M - $10.5M$26K5.0%547
Hotels Average
33 franchises
$8.1M - $18.5M$46K5.2%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 33 Hotels franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States by Outlet Count
1TX
134
2GA
96
3CA
85
4NC
78
5FL
75
6TN
71
7OH
69
8VA
57
9SC
56
10IL
52
11IN
52
12PA
51
13MI
48
14AL
45
15CO
44

+35 more states

SBA Loan History

Historical SBA 7(a) loan data for QUALITY INN franchisees (2010 - 2025)

Total Loans
799
Average Loan Amount
$2,491,532
Total Loan Volume
$1,990,734,300
Default Rate
1.3%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases125

Primarily franchisor-initiated actions to recover unpaid royalties, liquidated damages, fees, and other debts from franchisees and former franchisees; franchisee-initiated claims alleging breach of contract, fraud, misrepresentation, discriminatory and anti-competitive practices, misuse of fees and data, and violations of franchise laws; includes class actions and arbitrations.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
4
Non-Renewals
7
Reacquired by Franchisor
0
Ceased Operations (Other)
39
System Transfers
N/A
Sold to Franchisees
N/A
Projected New Franchises
33

Frequently Asked Questions

How much does it cost to open a QUALITY INN franchise?

The total initial investment to open a QUALITY INN franchise ranges from $316,945 to $2,045,895. This includes a franchise fee of $45,000. Ongoing royalty fees are 5.3% of gross sales.

How many QUALITY INN franchise locations are there?

As of the 2025 FDD, QUALITY INN has 1,621 franchise locations. The company has been franchising since 1968.

Can you get an SBA loan for a QUALITY INN franchise?

Yes, SBA loans are available for QUALITY INN franchises. Historical data shows 799 SBA 7(a) loans have been approved for QUALITY INN franchisees, with an average loan amount of $2,491,532. The historical default rate is 1.3%.

Is QUALITY INN a good franchise to buy?

QUALITY INN shows several positive indicators: established brand with 1,621+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in QUALITY INN?

Talk to a franchise advisor to get personalized guidance and learn if QUALITY INN is the right fit for you.

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