Red Roof Franchising LLC

2015 Franchise 500
At a Glance

Products & Services: Economy hotels

Number of Locations: 407

Total Investment: $3.5M - $4.8M

Founded: 1972

Began Franchising: 1996

About Red Roof Franchising LLC

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. The brand underwent a nationwide $200 million renovation in 2012, and also introduced Red Roof Plus+, a brand extension that includes upgraded amenities and services.

Franchise Units

Year U.S. Canadian International Company Owned
2015 290 0 0 117
2014 238 0 0 136
2013 207 0 0 140
2012 162 0 0 186
2011 139 0 0 201
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.

Startup Costs, Ongoing Fees and Financing

Total Investment: $3,465,600 - $4,806,000
Franchise Fee: $27,000
Ongoing Royalty Fee: 4.5%
Term of Franchise Agreement: 20 years, renewable
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Accounts Receivable

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee's location: 3 days. Regional workshops : 1-3 days.
Ongoing Support: Newsletter, Meetings, Grand opening, Internet, Field operations/evaluations
Marketing Support: Ad slicks, National media, Regional advertising,
Other marketing support: Social media, PR, radio, loyalty program

Franchise Ranking History

Franchise 500®: #142 (2015), #153 (2013), #168 (2012),
Fastest-Growing: #97 (2015), #99 (2013),
America's Top Global: #132 (2012),

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