This hotel franchise system operates multiple budget-economy hotel brands with 201 franchised units. The system has been declining slowly, losing 9 net units over 3 years with ongoing closures exceeding openings. The franchise fee varies by brand ($7,500-$15,000) with a flat monthly fee of $40 per room ($25 royalty, $15 marketing). Investment ranges widely from $134K-$2.6M depending on conversion vs. new construction. The franchisor provides minimal training (10 hours) and support, with most obligations falling on the franchisee. No exclusive territory is granted, and the franchisor can compete directly. The agreement auto-renews every 5 years but requires property improvements. No financial performance data is provided, making it difficult to assess profitability potential.
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 Hospitality International Hotels (Scottish Inns, Red Carpet Inn, Master Hosts, Passport Inn, Downtowner Inns) in category and investment range