Red Roof Franchising LLC

Red Roof Franchising LLC

Red Roof Franchising LLC
#164

Initial Investment

LOW: $3,465,600
HIGH: $4,806,000

Change in Units

+8.1% +33 UNITS (1 Year)
+14.7% +60 UNITS (3 Years)

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Promoted Opportunities

Company Profile

Founded

1972

Franchising Since

1996 (20 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

$3,465,600 - $4,806,000

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

Franchise 500® Rank History

  • 2006 - 253
  • 2012 - 168
  • 2013 - 153
  • 2015 - 142
  • 2016 - 164

* Not all years were ranked

Units (Locations)

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

Operations & Franchisor Support

Training Onsite: 3 days

Training at headquarters: 2 weeks

Additional Training: Regional workshops

Ongoing Support
Newsletter
Meetings
Grand Opening
Internet
Field Operations

Marketing Support
Ad Slicks
Regional Media
National 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: May 10th, 2016

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Previous Years Rankings

2016 2015 2014 2013 2012