HomeTowne Studios by Red Roof is an extended stay hotel franchise with a 20-year initial term. The franchise requires significant investment ($420K-$14.8M depending on new build vs conversion) and charges 5.5% royalty plus 3% marketing fees. The system has grown rapidly from 18 to 45 franchised units over 3 years, showing strong momentum. Territory protection is provided but limited to HomeTowne Studios brand only. No post-term non-compete restrictions exist. Training and ongoing support are provided but franchisee pays most costs.
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 HomeTowne Studios by Red Roof in category and investment range