RED ROOF PLUS AND SUITES
Red Roof PLUS+ & Suites franchises enable operators to own and operate enhanced economy to midscale guest lodging facilities offering premium rooms, upgraded amenities like exercise facilities and meeting rooms, and superior service standards for business and leisure travelers seeking value accommodations. The business model includes new construction or conversion of existing hotels, utilizing the franchisor's proprietary marks, reservation system, architectural plans, and operational manuals. Target markets feature midscale competition, business demand generators such as convention centers, universities, business parks, hospitals, and areas appealing to middle to upper-middle class travelers.
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 + 4% marketing and reservation fee + $500/mo technology fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 584 franchised Red Roof Inn and Red Roof PLUS+ Inns operating for at least one year for the period of January 1, 2024 through December 31, 2024 (Page 1, Item 19 introductory text).
* The document provides Daily Room Rate, Occupancy Rate, RevPAR, and Brand Contribution for franchised units. RevPAR is defined as 'average amount of revenue generated per day from each available room in the Inns' (Note 3, Page 5) and does not represent the total gross revenue of a franchise unit, which is typically in the range of $100K - $10M per unit. No explicit data for average gross revenue, median gross revenue, revenue quartiles, net income, net profit, or EBITDA for franchise units was provided. Therefore, these financial metrics could not be extracted or estimated.
Extracted Item 19 Section
How RED ROOF PLUS AND SUITES Compares to Other Hotels Franchises
Key Insights
- Top 10 largest franchise system in Hotels
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
RED ROOF PLUS AND SUITES Current | $7.3M - $8.9M | $27K | 5.0% | 584 |
| 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 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M - $10.5M | $26K | 5.0% | 547 |
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
+26 more states
SBA Loan History
Historical SBA 7(a) loan data for RED ROOF PLUS AND SUITES franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Dispute with former franchisee alleging breach of franchise agreement, tortious interference, and violations of the New Jersey Franchise Practices Act related to termination.
Bankruptcy (Item 4)
ASTECH Engineered Products, Inc. (where franchisor's General Counsel previously served) filed Chapter 11 on July 15, 2022; plan of liquidation confirmed May 20, 2024.
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 RED ROOF PLUS AND SUITES franchise?
The total initial investment to open a RED ROOF PLUS AND SUITES franchise ranges from $7,253,500 to $8,899,600. This includes a franchise fee of $27,000. Ongoing royalty fees are 5.0% of gross sales.
How many RED ROOF PLUS AND SUITES franchise locations are there?
As of the 2025 FDD, RED ROOF PLUS AND SUITES has 584 franchise locations. The company has been franchising since 2014.
Can you get an SBA loan for a RED ROOF PLUS AND SUITES franchise?
Yes, SBA loans are available for RED ROOF PLUS AND SUITES franchises. Historical data shows 369 SBA 7(a) loans have been approved for RED ROOF PLUS AND SUITES franchisees, with an average loan amount of $2,250,878. The historical default rate is 0.5%.
Is RED ROOF PLUS AND SUITES a good franchise to buy?
RED ROOF PLUS AND SUITES shows several positive indicators: established brand with 584+ locations, transparent financial performance data (Item 19), low SBA loan default rate. 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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