Red Lion Hotels Franchising, Inc.
1550 Market Street, Suite 350Denver, Colorado 80202
Knights Franchise Systems, Inc. is a Delaware corporation, incorporated on September 20, 1994. They are a subsidiary of Wyndham Hotel Group, LLC, a Delaware limited liability company, which is owned by Wyndham Worldwide Corporation, a Delaware limited liability company. Their principal business address is 22 Sylvan Way, Parsippany, New Jersey 07054.
We grant franchises to operate limited service hotels under the service mark Knights Inn® and certain other proprietary marks to franchisees (collectively, the “Franchisees”). A franchise grants you the right to operate a Knights Inn-branded hotel at a specific location (your “Hotel”). Hotels that are authorized to operate under the Brand (defined below) are known as “Knights Inn Hotels.” References to the “Knights Inn brand” or “Brand” mean Knights Inn and its brand extensions. The franchise concept allows experienced, professional hotel operators greater autonomy in their operations than conventional hotel franchises, while also providing brand standards that may be less elaborate or rigid compared to conventional hotel franchises. All Franchisees must be experienced in the industry (or must engage an experienced hotel management company on their behalf) and must have qualified professional hotel management on-site. Each Knights Inn Hotel must have at least 40 guest rooms and must be able to qualify for at least a 1-diamond rating from CAA or AAA, although official appointment is not necessary; in certain circumstances, substantially equivalent standards may be deemed acceptable by us. Amenities include swimming pools (unless geographically contraindicated), complimentary continental breakfast; 42” (minimum size) flat screen commercial-grade televisions with premium programming; high-speed internet access in guest rooms and in the lobby; and complimentary coffee service in the lobby, as well as our “top of bedding” program, terry program, and in-room amenity requirements. In all cases, we expect Knights Inn Hotels to be operated according to our Brand Standards and you may be required to make future investments. The “Brand Standards” include all of our mandatory policies, procedures, specifications, standards, operating procedures, service standards and rules we periodically prescribe for operating a Knights Inn Hotel. Our “Trade Dress” means the business design and image owned by us and our affiliates pertaining to Knights Inn Hotels. We may add elements to the Brand Standards, add Brand Standards, or modify, alter or delete elements of the Brand Standards.
5 Ongoing Lawsuits
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Franchimp Summary Rating
9/10
Investment Accessibility
9/10
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Upfront Franchise Fees
Minimum: $24,695 Maximum: $39,195
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $144,695 Maximum: $1,273,195
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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