Red Roof Inns

At a Glance

Products & Services: Economy hotels

Number of Locations: 348

Total Investment: $3.4M - $4.5M

Founded: 1972

Began Franchising: 1996

About Red Roof Inns

James Trueman, a builder and contractor, opened the first Red Roof Inn in Columbus, Ohio, in 1993. The company's original slogan, "Sleep Cheap," was reflective of its initial nightly room rates of $8.50. Today the economy hotel chain, which began franchising in 1996, has locations throughout the country, but primarily in the Midwest, Southern, and Eastern U.S.

Franchise Units

Year U.S. Canadian International Company Owned
2012 162 0 0 186
2011 139 0 0 201
2010 139 0 0 203
Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $3,403,200 - $4,494,700
Franchise Fee: $27,000
Ongoing Royalty Fee: 4.5%
Term of Franchise Agreement: 20 years, renewable

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee's location: 3 days.
Ongoing Support: Newsletter, Meetings, Grand opening, Internet, Field operations/evaluations
Marketing Support: Ad slicks, National media,

Franchise Ranking History

Franchise 500®: #153 (2013), #168 (2012),
Fastest-Growing: #99 (2013),
America's Top Global: #132 (2012),