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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.
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Franchise Costs
4.5% royalty + 3% marketing and reservation fee + 4% RediRewards® Preferred Member Program + $490/mo Reservation Platform / PMS Fee
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
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Unlock financial performance dataHow THE RED COLLECTION Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
THE RED COLLECTION Current | $223K – $1.6M | $30K | 4.5% | 5 |
| 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% | 596 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $8.2M – $21.6M | $49K | 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
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Unlock location growth dataFranchisee Contacts
9 franchisee contacts on file from official FDD filings.
9 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
One pending action involves alleged breaches of franchise agreement, tortious interference, and violations of the New Jersey Franchise Practices Act. One concluded action involved violations of Maryland Franchise Law regarding registration and disclosure. There is also a collection action filed in 2025.
Bankruptcy (Item 4)
Our General Counsel, Gerrod Bede, previously served as General Counsel of ASTECH Engineered Products, Inc., which filed for Chapter 11 bankruptcy on July 15, 2022, and the case was closed on January 2, 2026.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a THE RED COLLECTION franchise ranges from $222,875 to $1,611,250. This includes a franchise fee of $30,000. Ongoing royalty fees are 4.5% of gross sales.
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