Red Roof

Red Roof

Economy hotels
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2022 Franchise 500 Rank
N/R Ranked #134 last year
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Initial investment
$204K - $5.5M
Units as of 2020
597 16.6% over 3 years

Here’s what you need to know if you’re interested in opening a Red Roof franchise.

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
Andrew Alexander, President

Franchising Overview

Franchising Since
1996 (26 years)
# of employees at HQ
199
Where seeking

This company is seeking new franchisees in the following US states:

This company is seeking new franchisees in the following international regions:

# 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
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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
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
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Interested in franchise ownership like Red Roof? Request a free consultation with a Franchise Advisor now.

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 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