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.
Franchise Costs
5% royalty + 4% marketing and reservation fee + $500/mo technology fee
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
Key Insights
- Top 10 largest franchise system in Hotels
| Franchise | Investment | 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 34 franchises | $7.8M – $18.0M | $46K | 5.2% | – |
* 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
+26 more states
SBA Loan History
Historical SBA 7(a) loan data for RED ROOF PLUS AND SUITES franchisees (2010 – 2025)
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
589 franchisee contacts on file from official FDD filings.
| Name | SBA 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 |
589 Contacts Available
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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
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.
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