How many Red Carpet Inn franchise locations are there?

As of the 2026 FDD, Red Carpet Inn has 191 franchise locations. The company has been franchising since 1977.

Can you get an SBA loan for a Red Carpet Inn franchise?

Yes, SBA loans are available for Red Carpet Inn franchises. We have historical SBA 7(a) loan data on file including approval counts, average loan amounts, and default rates. Get full access to see the complete SBA loan history.

Is Red Carpet Inn a good franchise to buy?

Red Carpet Inn shows several positive indicators: established brand with 191+ locations. 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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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.

FDD Year:

191locations

$134K–$2612K

Since 1977

Hospitality & LodgingTucker, GARed Carpet Inns International, Inc. and Southern Scottish Inns, Inc.www.hifranchise.comDisclaimer

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Franchise Costs

Franchise Fee

$10,000

Initial Investment

$134,195 – $2,611,995

Royalty Rate

N/A

Brand Fund

N/A

Fixed Monthly Fees

$35 – $310

$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

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Red Carpet Inn Franchise Analysis

In the cutthroat world of budget hospitality, Red Carpet Inn has carved a niche since 1977 by linking franchisees to a central reservation system and national ads, targeting thrifty travelers who prioritize price over perks. While the FDD skips Item 19 earnings data—a gap that leaves revenue opaque—SBA loan records and system metrics paint a picture of real-world financing and stability challenges. Does a network of 191 properties signal steady demand, or do rising terminations hint at operator struggles worth probing?

Item 7 in the 2026 FDD lays out initial investments from $134,195 to $2,611,995, reflecting scalable budget hotel builds that can start modestly but balloon with property size and location. The $10,000 franchise fee kicks things off, followed by ongoing hits: $40 per room monthly ($25 royalty plus $15 marketing), a $35 monthly education fee, and a potential $275 non-compliance penalty. With no Item 19 disclosure, you're blind to average unit revenues or profits, forcing reliance on external benchmarks—like 30 SBA loans averaging $1,371,247 but carrying a 10% default rate, suggesting financing accessibility offset by repayment risks in this low-margin segment.

System health shows 191 locations amid 13 terminations, 4 transfers, and just 9 projected new units, indicating modest growth in a saturated budget market. Litigation centers on fee collections and one trademark case, typical for franchisors chasing royalties from cash-strapped owners. For buyers eyeing affordability, these figures underscore the need to stress-test operations against economic dips—strong reservation ties help, but without earnings transparency, validate via seller financials to gauge true ROI potential.

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Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How Red Carpet Inn Compares

Key Insights

Lower investment than 85% of Hotels franchises
Lower than average SBA loan default rate in Hotels

Franchise	Investment	Fee	Royalty	Locations
Red Carpet Inn Current	$134K – $2.6M	$10K	N/A	191
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%	596
BAYMONT INN & BAYMONT INN & SUITES	$7.6M – $10.5M	$26K	5.0%	547
Hotels Average 34 franchises	$8.2M – $21.6M	$49K	5.3%	–