Red Roof Inn charges a royalty fee of 5.0% 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.

The total ongoing fee rate for a Red Roof Inn franchise is approximately 9.0% of gross sales (2025 FDD). This includes the royalty fee, a 4.0% marketing/advertising fund contribution, a $490/month technology fee, and other recurring charges.

Red Roof Inn has been involved in 3 litigation cases over the past 3 years (2025 FDD). There are currently 1 pending cases. There are no class action lawsuits pending.

No, the Red Roof Inn franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Red Roof Inn 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.

Red Roof Inn currently operates 619 locations (2025 FDD) (584 franchised, 35 company-owned). The system grew by 2.1% over the past year. The 3-year compound annual growth rate is 1.3%.

The 1-year franchisee turnover rate for Red Roof Inn is 3.4% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

The initial franchise agreement term for Red Roof Inn is 20 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 30 years.

Red Roof Inn'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).

No, Red Roof Inn's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.

Red Roof Inn provides 46 hours of initial training (2025 FDD). Ongoing field support is provided on a as-needed basis.

Yes, Red Roof Inn provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.