Red Carpet Inn

Red Carpet Inn

Hospitality International, Inc. franchises budget hotels under the Red Carpet Inn brand, among others, as part of a nationwide network connected by a central reservation system and promoted through national and regional advertising. Franchisees operate affordable hotels targeting price-sensitive travelers, often required to provide a restaurant serving breakfast or a free continental breakfast to guests. The business model involves initial franchise fees ranging from $10,000, monthly fixed fees per room, reservation fees, and other ongoing charges to the franchisor.

201
Locations
$134K–$531K
Investment
Since 1977
Franchising
Hospitality & LodgingTucker, GARed Carpet Inns International, Inc. and Southern Scottish Inns, Inc.www.hifranchise.comDisclaimer

Franchise Costs


Franchise Fee
$10,000
Item 5 of FDD
Initial Investment Range
$134,195 $531,295
Low: $134,195High: $531,295
Item 7 of FDD
Royalty Rate
N/A
Brand Fund
N/A
Item 6 of FDD
Fixed Monthly Fees
$35 – $35
Item 6 of FDD

$25 per room/mo royalty + $15 per room/mo marketing fund + $35/mo education and meeting fee

Financial Performance


Item 19 Financial Performance

This franchise did not provide Item 19 financial performance data.

Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.

Extracted Item 19 Section

How Red Carpet Inn Compares


Key Insights

  • Lower investment than 88% of Hotels franchises
  • Lower than average SBA loan default rate in Hotels
FranchiseInvestmentFeeRoyaltyLocations
Red Carpet Inn
Current
$134K – $531K$10KN/A201
QUALITY INN$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
Hotels Average
34 franchises
$7.8M – $18.0M$46K5.2%

* 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.

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
1TX
68
2NJ
22
3PA
21
4GA
13
5NY
11
6TN
7
7NC
7
8VA
6
9FL
5
10CA
5
11CT
4
12MD
4
13AL
3
14AR
3
15MA
3

+26 more states

SBA Loan History


Historical SBA 7(a) loan data for Red Carpet Inn franchisees (20102025)

Total Loans
30
Average Loan
$1,371,247
Total Volume
$41.1M
Default Rate
10.0%

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.

Franchisee Contacts


6 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

6 Contacts Available

Unlock all Red Carpet Inn franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
8
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
7
Sold to Franchisees
0
Projected New
18

Frequently Asked Questions


The total initial investment to open a Red Carpet Inn franchise ranges from $134,195 to $531,295. This includes a franchise fee of $10,000.

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Also includes FDDs for

QUALITY INN
QUALITY INN
SUPER 8
SUPER 8
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES
DAYS INN, DAYS HOTEL AND DAYS INN & SUITES
LA QUINTA INN & SUITES
LA QUINTA INN & SUITES
RED ROOF PLUS AND SUITES
RED ROOF PLUS AND SUITES
+1,700 more