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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.
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Franchise Costs
5% royalty + 4% marketing and reservation fee + 4% RediRewards® Preferred Member Program
Financial Performance
Item 19 Financial Performance
Data Based On: Financial performance data for 567 franchised Red Roof Inn & Red Roof PLUS+ Inns open and operating for at least one year for the period of January 1, 2025 through December 31, 2025, with any temporary closures being less than 90 days.
* The document provides operational financial metrics such as 'Average RevPAR' (Revenue per Available Room), which is the average revenue generated per day from each available room. This is a per-room, per-day metric, not the total annual gross revenue for an individual franchise unit. Without information on the number of rooms per unit or average annual operating days, it is not possible to derive the total unit gross revenue, median gross revenue, quartile revenue, gross profit, net income, net profit, or EBITDA. No specific figures for these requested metrics were provided in the document.
Extracted Item 19 Section
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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% | 596 |
| 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 |
| TRAVELODGE, TRAVELODGE HOTEL, TRAVELODGE INN, | $6.1M – $11.0M | $35K | 5.0% | 328 |
Hotels Average 34 franchises | $8.7M – $22.2M | $48K | 5.3% | – |
* 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 (2025)
Outlets by state across the United States
+27 more states
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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.
369 SBA loans on record
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Franchisee Contacts
586 franchisee contacts on file from official FDD filings.
586 Contacts Available
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Due Diligence
Litigation (Item 3)
One pending action involves a former franchisee alleging breach of contract, tortious interference, and violations of the New Jersey Franchise Practices Act. One concluded action was a consent order with the Maryland Securities Commissioner regarding registration and disclosure violations.
Bankruptcy (Item 4)
ASTECH Engineered Products, Inc. (n/k/a AEP Legacy, Inc.), a former employer of the franchisor's General Counsel, filed for Chapter 11 reorganization on July 15, 2022, with a plan of liquidation confirmed on May 20, 2024, and the case closed on January 2, 2026.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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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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