- 2021 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$119K - $26.4M
- Units as of 2021
About Choice Hotels International Inc.
More from Choice Hotels International Inc.
When your business is finding success with the travelers of today and tomorrow, our business is you. At Choice Hotels®, we have a proven track record of driving innovation in the hospitality industry and delivering value to our franchise partners. From creating the country’s first hotel chain in 1941 to being the first U.S. hotel company to launch voice-enabled hotel bookings on the Google mobile app in 2019, we’re constantly evolving to anticipate the needs of modern travelers and provide vital support to our franchisees.
Benefits of Ownership
- Get more resources, starting from day one. As a Choice Hotels® franchisee, you’ll tap into 80+ years of knowledge and expertise to help you from start to finish – from planning your opening and setting a local market strategy to creating an efficient staffing plan, teaching you the secrets of running top-performing hotels and more.
- Experience the benefits of strong brands. With more than 7,000 Choice Hotels franchises around the world, our robust network of locations ensures that wherever guests’ travels take them, our hotels are there to meet their needs. And with brands that have as much as 96% brand awareness, customers feel comfortable and confident staying at a hotel with a name they know and trust.
- Find your niche. Choice Hotels brands are well-segmented and are represented in the economy, midscale, upscale and extended stay markets. One standout segment has been our extended stay brands that offer lodging options to longer-staying guests. This segment has outperformed others and delivered strong revenue numbers during the COVID-19 crisis. Our extended stay brands offer value-engineered hotel options with a proven, lean operating model that enables maximum efficiency for owners.
- Help drive revenue with digital assets. Driving a total of 164 million visits and $1.07 billion in revenue in 2019, ChoiceHotels.com offers franchisees individual property pages for travelers to book direct. Capturing digitally-savvy and on-the-go guests, our mobile app had over 1.2 million downloads and secured more than 6 million hotel bookings in 2019.
- Draw from a loyal customer base. The award-winning Choice Privileges® loyalty program has more than 45 million members that Choice engages through email communications and exclusive promotions. These strategic initiatives help drive bookings, improve brand engagement, encourage members to earn Gold/Platinum status by booking repeat stays, and more.
- Franchising Since
- 1972 (49 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 7,151 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Choice Hotels International Inc. franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $15,000 - $60,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $118,825 - $26,370,195
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $1,000,000 - $10,000,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $50,000 to $200,000
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Choice Hotels International Inc. has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 50+ hours
- Classroom Training
- 132 hours
- Additional Training
- Training materials
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Choice Hotels International Inc. landed on this year’s Franchise 500 Ranking versus previous years.