15 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
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The total initial investment to open a HomeTowne Studios by Red Roof franchise ranges from $420K to $14.8M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for HomeTowne Studios by Red Roof is $30K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the HomeTowne Studios by Red Roof 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a HomeTowne Studios by Red Roof franchise requires a physical location (2025 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisHomeTowne Studios by Red Roof charges a royalty fee of 5.5% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a HomeTowne Studios by Red Roof franchise is approximately 8.5% of gross sales (2025 FDD). This includes the royalty fee, a 3.0% marketing/advertising fund contribution, a $490/month technology fee, and other recurring charges.
View full fees analysisHomeTowne Studios by Red Roof has been involved in 2 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.
View full litigation analysisNo, the HomeTowne Studios by Red Roof franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisHomeTowne Studios by Red Roof offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisHomeTowne Studios by Red Roof currently operates 84 locations (2025 FDD) (45 franchised, 39 company-owned). The system grew by 15.1% over the past year. The 3-year compound annual growth rate is 7.3%.
View full growth analysisThe 1-year franchisee turnover rate for HomeTowne Studios by Red Roof is 8.2% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisThe initial franchise agreement term for HomeTowne Studios by Red Roof is 20 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 30 years.
View full contract analysisHomeTowne Studios by Red Roof's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 0 miles of the former location (2025 FDD).
View full legal analysisNo, HomeTowne Studios by Red Roof's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.
View full legal analysisHomeTowne Studios by Red Roof provides 46 hours of initial training (2025 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, HomeTowne Studios by Red Roof provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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