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Entrepreneur: Start & Grow Your Business

Choice Hotels Int'l.

Hotels

Background

Founded: 1939 Franchising since: 1962
A group of Southern motel owners got together in 1939 to discuss the state of the lodging industry, hoping to do something to change the negative opinion the public had about motels (FBI director J. Edgar Hoover had warned that motels were used as bases of operations by gangsters).

owners set about to create a set of quality standards for motels and agreed to publish the names of establishments that complied with these standards. In 1940, the group officially named itself Quality Courts United Inc. In 1990, Quality became known as Choice Hotels International Inc. The hotels in the chain now include Sleep, Comfort, Quality, Clarion, Rodeway, Econo Lodge an

10750 Columbia Pike
Silver Spring, Maryland 20901
Phone:
(800)547-0007

Franchisee Association
International Operator Council, EconoLodge Fran.

Franchisor is a publicly-held company with 400 employee(s); 90 employee(s) in franchise department.

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 4812 274 828 3
2008 4,593 272 844 3
2007 4,323 268 880 3
2006 4,113 262 906 3
2005 3,834 257 886 3

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide

Costs and Fees

Total investment: $2.5M-15.3M
Franchise fee: $10K-120K
Ongoing royalty fee: Varies
Term of agreement: 20 years, not renewable


Type of Financing Available
In-House Third Party
Franchise Fee No No
Startup Costs No No
Equipment No No
Inventory No No
Accounts Receivable No No
Payroll No No

Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $500K
Business Experience:
  • Industry experience
  • General business experience

Operations
  • 20% of all franchisees own more than one unit
  • Absentee ownership of franchise is allowed.

Training and Support

Training
  • Available at headquarters: 1 week
  • Ongoing regional training

Ongoing Support
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Grand opening
  • Internet
  • Field operations/evaluations

Marketing Support
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Other marketing support
  • PR

Rankings

Franchise 500® rank:
#49 (2009); #53 (2008); #41 (2007); #43 (2005);

Fastest-Growing Franchises:
#13 (2009); #15 (2008); #18 (2007); #22 (2005);

America's Top Global Franchises:
#43 (2009); #11 (2008); #38 (2007); #38 (2005);