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Red Roof Inn was incorporated by founder James R. Trueman in 1972. Its first Inn opened in Columbus, Ohio, with a single room rate of $8.50 in 1973. Today, Red Roof Inn has more than 325 locations, serves millions of guests each year and employs over 6,000 people. Over the last 30 years, the lodging company's commitment to quality growth has contributed to the creation of the Red Roof Inn identity, which represents value, consistency, and excellent service. Red Roof Inn will continue to grow through franchising, acquisitions and new development.
Franchisor Background
Year Established: 1972
Franchising Since: 1996
Operating Units: |
| Franchised Units: | 128 | | 36.7% | | |
| Company-Owned Units: | 221 | | 63.3% | | |
| | ______ | | _____ | | |
| Total Operating Units: | 349 | | 100% | | |
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Geographic Distribution: |
| U.S.: | 349 | | 100% | | In 43 States |
| Canada: | 0 | | 0% | | In 0 Canadian Provinces |
| International: | 0 | | 0% | | In 0 Foreign Countries |
| | ______ | | _____ | | |
| Total: | 349 | | 100% | | |
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North America: |
| States/Provinces with the largest number of operating units: |
| Density | Units | | | | |
| 1. Florida | 22 | | 2. Ohio | 35 | | 3. Texas | 21 |
Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia
Financial Requirements
Investment: |
| Minimum Net Worth: | $1.5MM |
| Cash Investment: | $100-500K |
| Total Investment: | $2.7-3.1MM |
| Average Total Investment: | $2900K |
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Fees: |
| Initial Franchise Fee: | $30K |
| Average Franchise Fee: | $30K |
| On-Going Royalty: | 4.5% |
| Average Royalty: | 4% |
| Advertising Fee: | 4% |
Average Number of Employees: 2-4 Full-time, 4-10 Part-time
Space Needs (in square footage): 15,000+
Preferred Sites: Free-standing Building
Other Sites:
Encourage Conversions? Yes
Earnings Claims Provided? Yes
Listed in the SBA Registry? No
Support and Training
| International Franchise Association: | Yes |
| Canadian Franchise Association: | No |
| Franchisee Association/Member: | Yes, Member |
| Size of Corporate Staff: | 130 |
| Site Selection Assistance? | No |
| Lease Negotiation Assistance? | No |
| Financial Assistance? | No |
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Marketing Support: |
| Co-Op Advertising: | Yes |
| National Advertising: | Yes |
| Regional Advertising: | No |
| Local Advertising: | No |
| Marketing Materials: | None Specified |
| Additional Services: | None Specified |
| Other Marketing Support: | Owner's Orientation, Manager's Orientation |
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On-Going Support: |
| Central Data Processing: | Included in Fees |
| Central Purchasing: | At Additional Cost |
| Field Operation Evaluation: | Included in Fees |
| Field Training: | Included in Fees |
| Initial Store Opening: | At Additional Cost |
| Inventory Control: | Not Applicable |
| Franchisee Newsletter: | Included in Fees |
| Regional or National Meetings: | At Additional Cost |
| 800 Telephone Hotline: | Included in Fees |
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Training: |
| 1. Columbus, OH for Owner's Orientatio | 2 Days | | 2. Columbus, OH for Manager Orientation | 2 Weeks |
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Franchisee Qualifications
| Ranked from 1 (unimportant) to 5 (important): |
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| Financial Net Worth: | 4 |
| General Business Experience: | 4 |
| Specific Industry Experience: | 1 |
| Formal Education: | 1 |
| Psychological Profile: | 1 |
| Personal Interview(s): | 3 |
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Minority Representation
Units Owned by Minorities: |
| African-American: | 0 |
| Asian-American: | 74% |
| Hispanic: | 0 |
| Native American: | 0 |
| Other: | 0 |
| Specific Minority: | We sponsor several minority organizations which undertake to provide access to qualified minority franchisee candidates, including the International Franchise Association's (IFA) Minorities in Franchising Committee, Asian American Hotel Owners Assoc. (AAHOA), National Minority Franchising Initiative (NMFI) and the National Assoc. of Black Hotel Owners, Operators and Developers ( NABHOOD). We will continue sponsoring those organizations that are effective in recruiting qualified minority candidates. |
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Terms of Contract
| Term of Initial Contract: | 15/20 Year(s) |
| Term of Renewal Period: | 10 Year(s) |
| Passive Ownership: | Allowed |
| Area Development Agreements? | No |
| Sub-Franchising Contracts? | No |
| Franchisees Allowed to Expand Within Territory? | No |
Expansion Plans
Projected New Units Over Next 12 months: 15
| U.S.: | Yes, All United States |
| Canada: | Yes, All Canada |
| Overseas: | No |
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