Choice Hotels

Hotels
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Franchise 500 Rank
N/R Not ranked last year
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Initial investment
$119K - $26.4M
Units as of 2021
7,151 Decrease

Choice Hotels started with a small hotel chain in 1939. The company tried to launch innovations to keep itself ahead of the game. These innovations included being one of the first to offer 24-hour, toll-free reservations in 1970, using a global marketing and reservations system in 1983, implementing non-smoking rooms in 1984, and utilizing voice-enabled hotel bookings on the Google mobile app in 2019.

Choice Hotels has over 7,000 hotels worldwide. Over 5,500 of those franchises are located in the United States. The franchise works to offer guests a clean, comfortable stay that is memorable for all the right reasons.

Why You May Want To Start a Choice Hotels Franchise

Having the right franchisee for Choice Hotels can drastically affect how the franchise functions. If the franchise doesn’t perform well and the franchisee doesn’t care enough to fix things, guests will notice, which can negatively affect their experience.

Franchisees for Choice Hotels may need to have a few key characteristics. The first is good time management skills; this may be especially true if you operate and manage more than one location. The second characteristic is good leadership skills. Operating a hotel typically requires a relatively large amount of staff. The staff needs to operate like a well-oiled machine, so if the franchisee does not have good leadership skills, the franchise could suffer. The third characteristic is a willingness to learn. Choice Hotels keeps on top of industry innovations, and the company tries to be among the first to implement them within their franchises. If a franchisee is not open to learning new things, the franchise could keep from staying in front of the competition.

What Might Make a Choice Hotels Franchise a Good Choice?

Something that may set Choice Hotels apart from other hotel franchises is the different brands franchisees can choose from. Various choices may allow franchisees to pick what will work best in their area. It also may allow franchisees to have more than one revenue stream if they open more than one location or brand.

To be part of the Choice Hotels team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements. 

How To Open a Choice Hotels Franchise

As you decide if opening a Choice Hotels franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Choice Hotels franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

Choice Hotels offers franchisees training and support before opening a franchise in addition to ongoing training and support after opening. As you research Choice Hotels, make sure you write down questions to ask the team during training.

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Company Overview

About Choice Hotels

Industry Lodging
Related Categories Hotels & Motels
Founded 1939
Parent Company Choice Hotels Int'l.
Leadership Patrick Pacious, President/CEO
Corporate Address 1 Choice Hotels Cir., #400
Rockville, MD 20850
Social Facebook, Twitter, LinkedIn, Instagram

Business Overview

Franchising Since 1972 (52 years)
# of employees at HQ 1,345
# 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 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 Information Circle
$15,000 - $60,000
Initial Investment Information Circle
$118,825 - $26,370,195
Net Worth Requirement Information Circle
$1,000,000 - $10,000,000
Cash Requirement Information Circle
$1,000,000
Veteran Incentives Information Circle
$50,000 to $200,000
Royalty Fee Information Circle
5-6%
Ad Royalty Fee Information Circle
2.5-3.5%
Term of Agreement Information Circle
20 years
Is franchise term renewable? Yes
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Financing Options

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 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
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed? Yes
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
Are exclusive territories available? Information Circle
Yes
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Franchise 500 Ranking History

Compare where Choice Hotels landed on this year's Franchise 500 Ranking versus previous years.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022