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.
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
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
Franchise Stats
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 to Other Hotels Franchises
Key Insights
- Lower investment than 82% of Hotels franchises
| Franchise | Investment Range | Franchise 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 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
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
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
How much does it cost to open a THE RED COLLECTION franchise?
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.
How many THE RED COLLECTION franchise locations are there?
As of the 2025 FDD, THE RED COLLECTION has 5 franchise locations. The company has been franchising since 2017.
Is THE RED COLLECTION a good franchise to buy?
Whether THE RED COLLECTION is a good franchise investment depends on your personal goals, available capital, and local market conditions. We recommend reviewing the full FDD, speaking with existing franchisees listed in Item 20, and consulting with a franchise attorney before making a decision.
Interested in THE RED COLLECTION?
Talk to a franchise advisor to get personalized guidance and learn if THE RED COLLECTION is the right fit for you.
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