13 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Ruby Hotels franchise ranges from $8.0M to $38.4M (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 Ruby Hotels is $75K (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 Ruby Hotels 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a Ruby Hotels 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 analysisRuby Hotels 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.
View full fees analysisThe total ongoing fee rate for a Ruby Hotels franchise is approximately 8.5% of gross sales (2025 FDD). This includes the royalty fee, a 3.5% marketing/advertising fund contribution, a $17.4/month technology fee, and other recurring charges.
View full fees analysisRuby Hotels has been involved in 2 litigation cases over the past 3 years (2025 FDD). There are currently 2 pending cases. There are no class action lawsuits pending.
View full litigation analysisNo, the Ruby Hotels franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisRuby Hotels offers non-exclusive territory rights to its franchisees (2025 FDD). The franchise agreement does not include encroachment protection. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisRuby Hotels currently operates 0 locations (2025 FDD) (0 franchised, 0 company-owned).
View full growth analysisRuby Hotels does not include an Item 19 financial performance representation in their FDD (2025 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for Ruby Hotels is 20 years (2025 FDD). The total potential term is 20 years.
View full contract analysisYes, Ruby Hotels provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
View full support analysisNo, Ruby Hotels's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
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