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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.
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Franchise Costs
6% royalty + 2.5% marketing & reservation + $400-$560/mo property technology fee + $35/mo CrowdStrike
Financial Performance
Item 19 Financial Performance
Data Based On: 94 franchised SUBURBAN hotels open and operating as of December 31, 2025, that met the definition of the Performance Sample.
* The document provides financial performance data for franchised SUBURBAN Hotels, including metrics like Average Occupancy Rate, Average Daily Rate, RevPAR, Average Length of Stay, and various contribution percentages (Total Choice Enterprise Contribution, Choice Privileges Contribution). However, it does not present average gross revenue per franchise unit in a dollar amount within the typical expected range ($100K - $10M). The provided dollar values are per-room rates (e.g., Average Daily Rate, RevPAR). Furthermore, the document explicitly states on page 4 that 'The financial performance representations in the above tables do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.' Therefore, no profit or EBITDA metrics, nor any basis for calculating a profit range, are available.
Extracted Item 19 Section
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How QUALITY INN Compares
Key Insights
- Lower than average SBA loan default rate in Hotels
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
QUALITY INN Current | $8.6M – $14.0M | $40K | 6.0% | 114 |
| SUPER 8 | $4.7M – $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M – $9.4M | $35K | 5.5% | 1,235 |
| LA QUINTA INN & SUITES | $12.8M – $17.2M | $55K | 5.5% | 884 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 584 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $8.7M – $22.1M | $48K | 5.3% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for QUALITY INN franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
799 SBA loans on record
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Franchisee Contacts
105 franchisee contacts on file from official FDD filings.
105 Contacts Available
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Due Diligence
Litigation (Item 3)
Primarily class actions and individual suits by franchisees alleging discriminatory/anti-competitive practices, RICO violations, breach of contract, fraud, trade secret misappropriation, civil rights violations, and California franchise law violations; franchisor initiated numerous royalty/fee recovery and post-termination IP enforcement actions in prior fiscal year.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Frequently Asked Questions
The total initial investment to open a QUALITY INN franchise ranges from $8,614,900 to $13,997,250. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.
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