Rodeway Inn
Choice Hotels International, Inc.
Company Information
1 Choice Hotels Circle, Suite 400Rockville, Maryland 20850
Choice Hotels International, Inc is a Delaware corporation formed on January 8, 1963, under the name Quality Inns International, Inc. They changed their corporate name to Choice Hotels International, Inc. on July 25, 1990. From November 1, 1996 to October 15, 1997, their corporate name was Choice Hotels Franchising, Inc. Their corporate name has been Choice Hotels International, Inc. since October 15, 1997. Their principal business address is 1 Choice Hotels Circle, Suite 400, Rockville, Maryland 20850. They began offering franchises under the trademark RODEWAY INN in 1990.
We began offering franchises under the trademark RODEWAY INN (“RODEWAY INN hotels”) in 1990. RODEWAY INN hotels provide budget segment hotels for value-oriented travelers that offer a welcoming and efficient environment at an economy price. Neither we, nor any current affiliate or predecessor, has owned or operated a RODEWAY INN hotel. Sunburst Hospitality Corporation, which was our affiliate until October 15, 1997, has owned and operated RODEWAY INN hotels. Your receipt of this disclosure document does not mean that you will be approved as a franchisee or that you may develop or open any of our franchised hotels. Before you may develop and open any of our franchised hotels, we must approve you as a franchisee, we must approve the location of your proposed hotel, you must attend and successfully complete our training programs, we and you must sign the Franchise Agreement (Exhibit D), and you must pay the affiliation fee. You should not acquire any interest in a site for a hotel franchise until, at the earliest, you are approved by us as a franchisee.
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Franchise Rating
Franchimp Summary Rating
10/10
Investment Accessibility
10/10
Franchise System Development
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Distribution of Rodeway Inn Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $20,000 Maximum: $200,000
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: $116,045 Maximum: $648,895
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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