Red Roof

Red Roof

Economy hotels
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2021 Franchise 500 Rank
#134 Ranked #66 last year
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Initial investment
$204K - $5.5M
Units as of 2020
597 16.6% over 3 years

Company Overview

James Trueman, a builder and contractor, opened the first Red Roof Inn in Columbus, Ohio, in 1972. 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.

About Red Roof

Industry
Lodging
Related Categories
Hotels & Motels
Founded
1972
Leadership
Andrew Alexander, President

Franchising Overview

Franchising Since
1996 (25 years)
# of employees at HQ
199
Where seeking

This company is seeking new franchisees throughout the US.

This company is seeking new franchisees worldwide.

# of Units
597 (as of 2020)

Franchisor Information

Corporate Address
7815 Walton Pkwy.
Columbus, OH 43054

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
$30,000
Initial Investment
$203,500 - $5,456,700
Royalty Fee
4.5%
Ad Royalty Fee
4%
Term of Agreement
20 years
Is franchise term renewable?
Yes

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
Additional Training
Regional workshops
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
Marketing Planning & Support
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?
No
Can this franchise be run part time?
No
# of employees required to run
10
Are exclusive territories available?
Yes

Franchise 500 Ranking History

Compare where Red Roof landed on this year’s Franchise 500 Ranking versus previous years.

Additional Rankings

Curious to know where Red Roof ranked on other franchise lists? Find out below.

Ranked #134

Franchise 500 Ranking

Ranked #76

Top Global Franchises

Ranked #46

Fastest-Growing Franchises (U.S. & Canada)

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021