Red Roof Inn franchise: cost, fees and total investment
Short answer: The Red Roof Inn franchise fee is $30,000 and the total initial investment ranges from $7,253,500 to $8,899,600, with about $1,535,000 in liquid cash required, based on franchise disclosure data compiled in October 2026. Confirm current figures in Items 5 and 7 of the Red Roof Inn FDD.
What are the Red Roof Inn franchise fees and investment?
The Red Roof Inn franchise requires a franchise fee of $30,000 and a total initial investment of $7,253,500 to $8,899,600. The franchise fee is one line inside the total investment, which also covers location, equipment, opening inventory and working capital.
| Franchise fee (FDD Item 5) | $30,000 |
|---|---|
| Total initial investment (FDD Item 7) | $7,253,500 to $8,899,600 |
| Minimum liquid cash | $1,535,000 |
| US locations | 619 |
| Industry | Hotels & Travel (Hotels & Lodging) |
| Headquarters | New Albany, Ohio |
| Founded | 1972 |
| Franchising since | 1996 |
How does the Red Roof Inn investment compare with other hotels & travel franchises?
Red Roof Inn's minimum investment of $7,253,500 is at or below the median minimum investment of $7,607,385 across the 195 hotels & travel franchises in the SelectFranchiseList database. 101 of the other 194 brands in this industry start at a higher investment. Its franchise fee starting at $30,000 compares with an industry median of $50,000.
By minimum investment, Red Roof Inn belongs with franchises over $500,000.
What should you verify in the Red Roof Inn FDD?
Verify six parts of the Red Roof Inn Franchise Disclosure Document before you sign, because figures change with every annual FDD:
- Item 5 and Item 6: the current franchise fee, royalty, marketing fund and technology fees.
- Item 7: the full investment range by expense line, including working capital.
- Item 19: whether Red Roof Inn discloses financial performance data, and which units it covers.
- Item 20: openings, closures and transfers, plus contacts for current and former franchisees.
- Item 21: the franchisor's audited financial statements.
- Item 12: whether your territory is protected.
The full list of Items is in the FDD guide. You must receive the FDD at least 14 calendar days before you sign a binding agreement or pay any money.
Which franchises are similar to Red Roof Inn?
These hotels & travel franchises have the closest minimum investment to Red Roof Inn:
| Franchise | Franchise fee | Total investment |
|---|---|---|
| Microtel Inn & Suites by Wyndham | $40,000 | $7,200,444 to $9,171,777 |
| Shilo Inn | $25,000 to $50,000 | $7,366,500 to $203,340,000 |
| Radisson Red | $75,000 | $7,050,440 to $41,791,390 |
| StayApt Suites | $40,000 | $7,529,900 to $12,904,400 |
| Baymont by Wyndham | $26,000 | $7,598,317 to $10,549,711 |
See every brand in hotels & travel franchises.
Frequently asked questions
How much does a Red Roof Inn franchise cost?
The total initial investment for a Red Roof Inn franchise ranges from $7,253,500 to $8,899,600, including a franchise fee of $30,000, according to franchise disclosure data compiled in October 2026. The exact amount depends on location, build-out and working capital, as shown in Item 7 of the FDD.
How much cash do you need to open a Red Roof Inn franchise?
Red Roof Inn lists a minimum of about $1,535,000 in liquid cash. Lenders usually finance part of the remaining investment, and the franchisor confirms its capital requirements during qualification.
How many Red Roof Inn locations are there?
Red Roof Inn reported 619 US locations in the data compiled in October 2026. Item 20 of the FDD shows openings, closures and transfers for the last three years.
How long has Red Roof Inn been franchising?
Red Roof Inn started offering franchises in 1996 after the company was founded in 1972.
Figures are compiled from franchise disclosure data and public franchise listings as of October 2026 and may have changed. Red Roof Inn and its trademarks belong to their owner; SelectFranchiseList is not affiliated with or endorsed by Red Roof Inn. This page is not an offer to sell a franchise. Only the franchisor's current FDD is authoritative.