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HomeTowne Studios by Red Roof franchise — is it worth it?
Low risk Growing network Item 19 disclosed
HomeTowne Studios by Red Roof, HomeTowne Inn, and Home Town Inn offer an extended-stay hotel franchise opportunity with a substantial initial investment ranging from $11.7 million to $14.5 million.
Everything below is free, read straight off HomeTowne Studios by Red Roof's registered filing, with where the numbers land against travel & hospitality peers. Weighing HomeTowne Studios by Red Roof against other options? Get a free shortlist of franchises that fit your budget.
Figures above are as disclosed in HomeTowne Studios by Red Roof's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 640927 — check it yourself. See every other Wisconsin-registered franchise.
Considering HomeTowne Studios by Red Roof? See what else fits your budget
Tell us your budget and the industries you're open to. We'll match you with 5–10 franchises whose own FDDs fit — ranked by earnings disclosure, growth and closure rate — and email you the list. HomeTowne Studios by Red Roof will be on it if it fits.
How much does a HomeTowne Studios by Red Roof franchise make?
HomeTowne Studios by Red Roof is one of the franchisors that answers this on the record: its most recent FDD makes an Item 19 financial performance representation — actual unit earnings figures, disclosed by the franchisor itself. The headline figure did not machine-read cleanly from this filing, so we don't print one; Item 19 of the source FDD has the tables. See every travel & hospitality brand that discloses earnings in the Hotel, travel & hospitality franchises with disclosed Item 19 earnings ranking.
HomeTowne Studios by Red Roof franchise profit vs. revenue
Revenue is not profit. An Item 19 almost always reports sales — what a location takes in — not what an owner keeps. Out of that number come HomeTowne Studios by Red Roof's 5.5% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a HomeTowne Studios by Red Roof franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "HomeTowne Studios by Red Roof franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure.
HomeTowne Studios by Red Roof lawsuits & legal history (FDD Item 3)
HomeTowne Studios by Red Roof's most recently filed Franchise Disclosure Document (2026) does disclose legal proceedings in Item 3 . Item 3 is the item where a franchisor must put its material legal history on the record. Two things it is not: it covers the franchisor and its predecessors, parents and affiliates, so a disclosed case is not necessarily a suit against HomeTowne Studios by Red Roof itself; and a disclosure is a fact, not a finding of wrongdoing — most entries are contract disputes with former franchisees, which every large system accumulates. Item 3 of the source FDD describes each case.
HomeTowne Studios by Red Roof closures & failure rate
Before you sign, HomeTowne Studios by Red Roof will hand you a list of current owners to call as references — and they choose who's on that list. It won't include the owners who quit, got bought out, or were forced out last year. The FDD does report that number, even though the reference list leaves those people off. Below is what HomeTowne Studios by Red Roof's most recent filing shows, and whether it's normal for a travel & hospitality of this kind.
The closest thing an FDD has to a failure rate is Item 20 — outlet openings, closures, terminations and non-renewals, reported by the franchisor. HomeTowne Studios by Red Roof's latest tables show a growing franchised network. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 2.2%, against a travel & hospitality median of 4.1% — at or better than the category. Net franchised outlets moved +8 to 53 in the latest reported year.
Who owns HomeTowne Studios by Red Roof?
HomeTowne Studios by Red Roof's franchise is offered by HomeTowne Studios, LLC — the franchisor named on the cover of its most recently filed Franchise Disclosure Document (2026), and the entity a franchisee actually signs with. That name comes straight off the filing at WI DFI; it identifies the franchisor, not necessarily the ultimate parent company behind it.
Travel & hospitality franchises at a similar investment level
Anyone weighing HomeTowne Studios by Red Roof is really weighing it against the other brands their money could go into. These are the closest by total initial investment (FDD Item 7), each with its own FDD-based page.
HomeTowne Studios by Red Roof franchise — frequently asked
Who owns HomeTowne Studios by Red Roof — who is the franchisor?
HomeTowne Studios by Red Roof's most recently filed FDD (2026) names HomeTowne Studios, LLC as the franchisor — the entity you would actually sign the franchise agreement with, as stated on the disclosure document itself. A registry filing names the franchisor, not necessarily its ultimate parent company.
How much does a HomeTowne Studios by Red Roof franchise cost?
HomeTowne Studios by Red Roof's most recently filed FDD (Item 7) puts the total estimated initial investment at $11,734,393 – $14,457,291 and a 5.5% royalty. That price is the franchisor's own estimate of what it takes to open, not a quote. Against travel & hospitality peers it sits in the lower quartile (median $3,332,700).
How much profit does a HomeTowne Studios by Red Roof franchise make?
HomeTowne Studios by Red Roof discloses unit earnings in Item 19, but that figure is revenue — sales — not profit. Royalties (5.5% of gross for HomeTowne Studios by Red Roof), the ad fund, rent, payroll and supplies all come out of it, and no FDD discloses what an owner nets. Any HomeTowne Studios by Red Roof franchise profit number quoted elsewhere is an estimate.
Does HomeTowne Studios by Red Roof disclose financial performance (Item 19)?
Yes — HomeTowne Studios by Red Roof reports unit-level earnings in Item 19. The headline figure did not machine-read cleanly, so check Item 19 of the source FDD for the numbers.
Are there lawsuits against HomeTowne Studios by Red Roof?
HomeTowne Studios by Red Roof's most recently filed FDD (2026) discloses legal proceedings in Item 3. Item 3 covers the franchisor, its predecessors, parents and affiliates — so a disclosed case is not necessarily a suit against HomeTowne Studios by Red Roof itself, and a disclosure is not a finding of wrongdoing.
Is HomeTowne Studios by Red Roof a good franchise to buy?
Nobody can answer that from HomeTowne Studios by Red Roof's numbers alone — it comes down to how its investment, earnings, litigation and franchisee churn stack up against travel & hospitality peers and against your own budget. Our read on this filing is low risk. Every figure behind that read is on this page for free. If you're comparing options, the free shortlist on this page matches you with 5–10 franchises that fit your budget and industry.
Get a free email when something changes on HomeTowne Studios by Red Roof or travel & hospitality: a new FDD registration, a new lawsuit, an outlet count that shifts, or Item 19 earnings going from undisclosed to disclosed. Pulled straight from the same state registries this page is built on.