Red Roof

Economy hotels
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Franchise 500 2023
Franchise 500 Rank
N/R Not ranked last year
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Initial investment
$259K - $14.6M
Units as of 2023
601 Increase 0.7% over 3 years

The first Red Roof was founded in 1972 in Columbus, Ohio. By 1996, the first Red Roof franchise location was opened, and since then, the brand has grown to more than 500 locations across the United States. Guests may enjoy standard and luxury amenities such as a kitchenette, free Wi-Fi, laundry, dining table, chairs, and more.

With over 45 years in the hostel hospitality industry, Red Roof believes it knows how to host guests.

Why You May Want To Start a Red Roof Franchise

With four brands of hotels under the Red Roof name, franchisees pick which type of franchise they would like to open. The four brands include Red Roof Inn, Red Roof Plus+, The Red Collection, and HomeTowne Studios by Red Roof. Additionally, franchisees can choose to build or convert an existing property to a Red Roof location. This type of flexibility may allow the franchisee to make their location their own. 

If you choose to franchise with Red Roof, be prepared for ample franchise support from company headquarters, which are located in Columbus, Ohio. Franchisees have access to the Red Roof franchise advisory council to produce superior guest and franchisee experiences. Support may include management expertise, branding supplies, revenue management, training, mobile websites, and increased distribution channels, and more. 

An ideal franchisee is committed to the Red Roof company values with the guests’ comfort at the center of their hotel. While experience in the hotel industry is not required, it is recommended and may be seen as a strength when entering the franchising process. 

What Might Make a Red Roof Inn Franchise a Good Choice?

Opening a Red Roof franchise may offer a more predictable outcome than investing in a completely new brand that could struggle to thrive in an already crowded and competitive industry.

As you decide if opening a Red Roof 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 Red Roof franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.

Red Roof may allow you to operate your franchise as an absentee owner. This could afford you the opportunity to be hands-off, delegating work and serving as your own boss. This may also allow you to spend more time with your family and friends, doing what you want to do, while still running a business.

How To Open a Red Roof Franchise

To be part of the Red Roof 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, royalty, and potential renewal fees.

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Red Roof franchising team questions.

Find Your Perfect Franchise

Company Overview

About Red Roof

Industry Lodging
Related Categories Hotels & Motels
Founded 1972
Leadership Matthew Hostetler, Chief Development Officer
Corporate Address 7815 Walton Pkwy.
Columbus, OH 43054
Social Facebook, Twitter, LinkedIn, Instagram, YouTube

Business Overview

Franchising Since 1996 (28 years)
# of employees at HQ 199
Where seeking

This company is offering new franchises throughout the US.

This company is offering new franchises worldwide.

# of Units 601 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Red Roof 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
$30,000
Initial Investment Information Circle
$259,000 - $14,643,155
Royalty Fee Information Circle
5%
Ad Royalty Fee Information Circle
4%
Term of Agreement Information Circle
20 years
Is franchise term renewable? Yes
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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 9 hours
Classroom Training 24 hours
Ongoing Support
Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
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? No
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
# of employees required to run 10
Are exclusive territories available? Information Circle
No
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Franchise 500 Ranking History

Compare where Red Roof 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