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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.

114locations
$8615K–$13997K
Since 1968
Hospitality & LodgingNorth Bethesda, MDchoicehotelsdevelopment.comDisclaimer

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Franchise Costs

Franchise Fee
$40,000
Initial Investment
$8,614,900 – $13,997,250
Royalty Rate
6.00%
Brand Fund
2.50%
Fixed Monthly Fees
$435 – $595

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
FranchiseInvestmentFeeRoyaltyLocations
QUALITY INN
Current
$8.6M – $14.0M$40K6.0%114
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
34 franchises
$8.7M – $22.1M$48K5.3%

* 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 (20102025)

Total Loans
799
Average Loan
$2,491,532
Total Volume
$1990.7M
Default Rate
1.3%

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)

Franchisee Cases8

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)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
1
Non-Renewals
3
Reacquired
0
Ceased Ops
8
Transfers
9
Sold to Franchisees
0
Projected New
14

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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.