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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.

191
Locations
$134K–$2612K
Investment
Since 1977
Franchising
Download FDD
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 – $2,611,995
Low: $134,195High: $2,611,995
Item 7 of FDD
Royalty Rate
N/A
Brand Fund
N/A
Item 6 of FDD
Fixed Monthly Fees
$35 – $310
Item 6 of FDD

$40/room/mo fixed monthly fee ($25 royalty + $15 marketing) + $35/mo education fee; possible $275/mo non-compliance 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 – $2.6M$10KN/A191
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
$8.0M – $18.8M$47K5.2%–

* 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.

SBA Loan History

Historical SBA 7(a) loan data for Red Carpet Inn franchisees (2010 – 2025)

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

196 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

196 Contacts Available

Unlock all Red Carpet Inn franchisee contacts with verified contact information

Due Diligence

Litigation (Item 3)

Franchisee Cases5

Primarily fee collection matters (unpaid royalties and fees), with one trademark infringement claim.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
13
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
4
Sold to Franchisees
0
Projected New
9

Frequently Asked Questions

The total initial investment to open a Red Carpet Inn franchise ranges from $134,195 to $2,611,995. This includes a franchise fee of $10,000.

Download Red Carpet Inn FDD

Complete Franchise Disclosure Document — 2026 filing.

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