Red Roof Franchising, LLC
7815 Walton Parkway
Red Roof Franchising, LLC is a Delaware limited liability company with a principal business address of 605 South Front Street, Columbus, Ohio 43215. Red Roof Franchising, LLC was formed in January 2007. In June 2007, RRF acquired all the rights to franchise Red Roof Inns and assumed as franchisor all existing Red Roof franchise agreements from G6 Hospitality, LLC (f/k/a Accor Franchising North America, LLC).
If you are approved as a Red Roof Inn hotel (all references herein to Red Roof Inns include Red Roof Inn & Suites, Red Roof PLUS+ and Red Roof PLUS+ & Suites Hotels), you will be granted the right to construct or convert and operate a Red Roof Inn hotel at a single, defined location through a Franchise Agreement (as defined herein). We offer franchises to both new operators who will build new hotels at a defined location (a “New Build”) and to existing hotel operators, who will convert their existing hotel and renovate such hotel in accordance with our standards (“Standards”) and as otherwise required for conversion (a “Conversion”). For purposes of this document, all information herein applies to both New Builds and Conversions unless otherwise noted. You will own and operate a Red Roof Inn, Red Roof Inn & Suites, Red Roof PLUS or Red Roof PLUS+ & Suites lodging facility. A Red Roof Inn lodging facility offers low cost accommodations to all sectors of the traveling public. A Red Roof Inn is generally located at places that attract both business and leisure travelers, such as major highway exit ramps, major intersections, airports, tourist destinations, and business centers. You will operate the business according to our business system and standards, and under the Red Roof Inn trademarks. You will use our prototype architectural plans and drawings in building a Red Roof Inn, or in renovating an existing building to be a Red Roof Inn. A typical Red Roof Inn does not offer full service and management intensive facilities or services, such as inhouse restaurants or cocktail lounges, conference rooms, room service, or banquet centers. However, to meet the needs of guests in certain markets, we offer a Red Roof Inn & Suites lodging facility with enhanced amenities, such as more spacious rooms with refrigerators and coffee makers, exercise facilities, or meeting rooms. We also offer Red Roof PLUS+ and Red Roof PLUS+ & Suites lodging facilities for those hotels that meet Red Roof PLUS+ standards and service requirements. Red Roof PLUS+ and Red Roof PLUS+ & Suites lodging facilities offer enhanced amenities such as a minimum required number of premium guest rooms as well as other amenities and service requirements and was designed in response to continuing guest demand for an enhanced experience at a value price, positioned to compete in markets attracting experienced business and leisure travelers accustomed to midscale and above accommodations. Candidates for Red Roof PLUS+ and Reds Roof PLUS+ & Suites properties will be considered based on criteria including, but not limited to, an applicant’s experience and history in addressing guest satisfaction, proven guest service acumen, past property operating success as well as market qualifications (which may, but are not required to, include the following: a market with midscale as well as limited service competition, a market with appeal to business and leisure travelers, middle to upper middle class, key business demand generators present, i.e.: convention center, university, business parks, hospitals, government centers and the potential to support strong average daily rates.) Property qualifications for Red Roof PLUS+ and Red Roof PLUS+ and Suites include but are not limited to compliance with all Red Roof PLUS+ specifications for both new construction or conversion locations and a commitment to elevated product and service standards. A franchisee operating a Red Roof PLUS+ or Red Roof PLUS+ and Suites property must understand the continuous nature of upgrading their Red Roof PLUS+ or Red Roof PLUS+ & Suites Property as outlined in the Red Roof Brand Standard Manual (the “Manual”). If you apply for a Red Roof franchise agreement and intend to build a new hotel, you must sign the Non-Disclosure Agreement attached as Exhibit G, in which you agree to keep confidential all information concerning the building plans and related material for our new build NextGen® prototype. Your use of certain Red Roof Inn trademarks in connection with your Red Roof Inn business will be pursuant to a sublicense from us to you under the Franchise Agreement. One of our subsidiaries, RRI Financial, Inc., is the owner of the Red Roof Inn trademarks. It licenses to us the right to use the trademarks and grant franchisees the right to use them. The business address of RRI Financial, Inc. is 605 South Front Street, Columbus, Ohio 43215. See Item 13 of this Disclosure Document for further discussion of the trademarks and the licensing arrangements.
4 Ongoing Lawsuits
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Franchimp Summary Rating
8/10
Investment Accessibility
8/10
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Upfront Franchise Fees
Minimum: $53,000 Maximum: $125,900
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: $5,933,500 Maximum: $7,288,723
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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