RAMADA AND RAMADA PLAZA
Ramada Worldwide Inc. franchises Ramada and Ramada Plaza guest lodging facilities offering overnight accommodations, meeting rooms, fitness centers, business services, and flexible food and beverage options to transient guests. These mid- to upper mid-market hotels target travelers seeking comfortable, amenity-rich stays in interior corridor designs. The business model licenses the proprietary Ramada System and trademarks to franchisees for operating chain facilities worldwide.
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
Financial Requirements
5% royalty + 2% marketing fund (within 3.5% system assessment) + $734-$1,050/mo PMS support fee + $1,200/yr continuing education + $15/room/yr RMA fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 109 Qualified Chain Facilities in the United States, open for the full year 2024 (January 1, 2024 through December 31, 2024), that opened before January 1, 2023, passed their most recent quality assurance inspection or had yet to receive a quality assurance inspection prior to December 31, 2024, and achieved a 'Comparable Social Review Score' (received at least ten total reviews via Medallia with an average score of 3.0 or above out of 5.0). All facilities were operated by franchisees.
* The document provides Average Daily Room Rate (ADR), Occupancy Rate, and Revenue Per Available Room (RevPAR) for Qualified Chain Facilities. RevPAR is defined as 'gross room revenue per available room', not the total gross revenue per franchise unit. Therefore, no direct 'average_gross_revenue' or 'median_gross_revenue' for a full unit can be extracted based on the provided definitions and typical values. No information on net income, net profit, EBITDA, or expenses was provided.
Extracted Item 19 Section
How RAMADA AND RAMADA PLAZA Compares to Other Hotels Franchises
Key Insights
- Top 10 largest franchise system in Hotels
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
RAMADA AND RAMADA PLAZA Current | $7.7M - $12.1M | $35K | 5.0% | 264 |
| QUALITY INN | $317K - $2.0M | $45K | 5.3% | 1,621 |
| 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 |
Hotels Average 33 franchises | $8.1M - $18.5M | $46K | 5.2% | - |
* 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
+32 more states
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily breach of contract disputes involving unpaid fees, liquidated damages, and terminations, with franchisee counterclaims alleging violations of franchise laws, good faith breaches, reservation system failures, and encroachment.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a RAMADA AND RAMADA PLAZA franchise?
The total initial investment to open a RAMADA AND RAMADA PLAZA franchise ranges from $7,709,044 to $12,091,975. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.
How many RAMADA AND RAMADA PLAZA franchise locations are there?
As of the 2025 FDD, RAMADA AND RAMADA PLAZA has 264 franchise locations. The company has been franchising since 1989.
Is RAMADA AND RAMADA PLAZA a good franchise to buy?
RAMADA AND RAMADA PLAZA shows several positive indicators: established brand with 264+ locations, transparent financial performance data (Item 19). 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.
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