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Red Roof Inn franchise — is it worth it?

Low risk Growing network Item 19 disclosed

Red Roof Inn offers a hotel franchise opportunity with a substantial initial investment ranging from $7.2 million to $8.9 million.

Everything below is free, read straight off Red Roof Inn's registered filing, with where the numbers land against travel & hospitality peers. Weighing Red Roof Inn against other options? Get a free shortlist of franchises that fit your budget.

Figures above are as disclosed in Red Roof Inn's most recent FDD (registered 2026). Source: Wisconsin Dept. of Financial Institutions — Franchise Registration · filing 640917 — check it yourself. See every other Wisconsin-registered franchise.

How much does a Red Roof Inn franchise make?

Red Roof Inn 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.

Red Roof Inn 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 Red Roof Inn's 5% royalty, the ad fund, rent, payroll, supplies and debt service. No FDD tells you a Red Roof Inn franchise's profit, because profit depends on your site, your rent and how you run it — so treat any "Red Roof Inn franchise profit" figure quoted elsewhere as someone's estimate, not a disclosure.

Red Roof Inn lawsuits & legal history (FDD Item 3)

Red Roof Inn'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 Red Roof Inn 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.

Red Roof Inn closures & failure rate

Before you sign, Red Roof Inn 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 Red Roof Inn'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. Red Roof Inn's latest tables show a growing franchised network. Its franchised-outlet closure rate — closures, terminations and non-renewals against outlets — is 4.3%, against a travel & hospitality median of 4.1% — worse than the category. Net franchised outlets moved +12 to 596 in the latest reported year.

Who owns Red Roof Inn?

Red Roof Inn's franchise is offered by Red Roof Franchising, 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 Red Roof Inn 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.

Red Roof Inn franchise — frequently asked