THE RED COLLECTION
The Red Collection franchise enables operators of existing hotels to convert and renovate them into mid-scale transient guest lodging facilities that retain local or historic trade names while affiliating with the 'The Red Collection®' soft brand. These hotels offer high-quality, affordable, modern, and accessible accommodations in convenient city locations, emphasizing flexibility in design, local marketing, and elevated guest service standards. The target market includes business and leisure travelers seeking value-priced midscale stays in markets with strong demand generators like convention centers, universities, and business parks.
Franchise Costs
4.5% royalty + 3% marketing and reservation fee + $490/mo PMS base (+ $3.85/room/mo) + $125-250/mo RediResponse + cyber insurance ~$46-433/mo
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 THE RED COLLECTION Compares
Key Insights
- Lower investment than 79% of Hotels franchises
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
THE RED COLLECTION Current | $221K – $1.6M | $30K | 4.5% | 5 |
| 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 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 584 |
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
Franchisee Contacts
8 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 |
8 Contacts Available
Unlock all THE RED COLLECTION franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
ASTECH Engineered Products, Inc. (where franchisor's General Counsel previously served as General Counsel) 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 THE RED COLLECTION franchise ranges from $220,875 to $1,569,250. This includes a franchise fee of $30,000. Ongoing royalty fees are 4.5% of gross sales.
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