Red Roof Franchising LLC

Red Roof Franchising LLC

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Red Roof Franchising LLC
#191

Initial Investment

LOW: $3,475,600
HIGH: $4,970,500

Change in Units

+16.5% +67 UNITS (1 Year)
+36.6% +127 UNITS (3 Years)

Company Profile

Founded

1972

Franchising Since

1996 (21 Years)

Corporate Address

605 S. Front St. Columbus, OH 43215

CEO

Andrew Alexander

About Red Roof Franchising LLC

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.

Financials

Financial Requirements

Initial Investment

$3,475,600 - $4,970,500

Ongoing Fees

Initial Franchise Fee

$27,000

Ongoing Royalty Fee

4.5%

Ad Royalty Fee

4%

Financing Options

Red Roof Franchising LLC has relationships with third-party sources which offer financing to cover the following: 
franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Units (Locations)

Where Seeking Franchisees:
Franchisor is seeking new franchise units throughout the U.S.

Operations & Franchisor Support

Training Onsite: 4-5 days

Training at headquarters: 10 days

Additional Training: Regional workshops

Ongoing Support
Purchasing Co-ops
Newsletter
Meetings
Toll-Free Line
Grand Opening
Internet
Field Operations

Marketing Support
Co-op Advertising
Ad Slicks
National Media
Regional Media

Absentee Ownership Allowed

Number of employees required to run: 14

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Disclaimer

The Franchise 500 is not intended to endorse, advertise, or recommend any particular franchise. It is solely a research tool you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing money in a franchise.

Updated: October 6th, 2016

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