Business Description

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	100.0%
Geographic Distribution: U.S.: 349 100% In 43 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 349 100.0%

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
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

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	1
Formal Education:	1
Psychological Profile:	1
Personal Interview(s):	3
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
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
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
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
Training:
1. Columbus, OH for Owner's Orientatio	2 Days
2. Columbus, OH for Manager Orientation	2 Weeks
Expansion Plans
Projected New Units Over Next 12 months: 15 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: No	Request Franchisor Info   Submit an online form to receive information from Red Roof Inns.