ECONO LODGE is a budget hotel franchise operating in a declining system with 643 franchised units as of December 31, 2024, down from 677 the previous year. The franchise requires a $35,000 minimum affiliation fee ($350 per room) and total investment ranging from $185,645 to $1,047,895 for conversion properties. Ongoing fees include 5.0% royalty and 3.5% marketing fee. The system offers no exclusive territory protection and grants franchises for specific sites only. The 20-year initial term includes termination rights for both parties on 5th, 10th, and 15th anniversaries. Training consists of a 3-day Choice Onboard program and virtual HOST certification. Item 19 provides operational metrics (occupancy rates, ADR, RevPAR) but no gross sales or profit data. The system faces ongoing litigation including class action suits, and shows concerning trends with more units closing (44) than opening (21) in 2024.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
Similar to ECONO LODGE in category and investment range