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Hotel franchise fees › Red Roof Inn

Red Roof Inn Franchise Fees 2025: Royalty, Marketing and Initial Fee

Red Roof Inn is an economy brand from Red Roof. Here is what it charges to join and to stay in the system, where the numbers come from, and how they compare with similar brands.

5%Royalty
4% (Marketing and Reservation Fee)Marketing or program fee
9%Royalty plus marketing

Red Roof Inn fees at a glance

Initial fee$27,000 for up to 100 rooms, plus $3,000 application fee
Royalty5%
Marketing or program fee4% (Marketing and Reservation Fee)
Royalty plus marketing9% of rooms revenue
FranchisorRed Roof
SegmentEconomy
Disclosure year2025

Note: 2025 FDD (issued April 14, 2025) on file with the Minnesota Department of Commerce. One FDD covers Red Roof Inn and Red Roof PLUS+.

Source: Read in Red Roof Inn’s 2025 Franchise Disclosure Document (FDD). Source 1

How Red Roof Inn compares

Red Roof Inn’s royalty and marketing fees add up to 9% of rooms revenue. That is above the 8.7% average for the 10 economy brands in our table with a comparable headline figure, the 8th-lowest of the 10.

Economy brandFranchisorRoyaltyMarketingHeadline
Microtel Inn & Suites by WyndhamWyndham6%2% (marketing and reservation contribution)8%
Econo LodgeChoice Hotels5%3.5% (Marketing and Reservation Fee)8.5%
Rodeway InnChoice Hotels5%3.5% (Marketing and Reservation Fee)8.5%
Super 8 by WyndhamWyndham5.5%3% (System Assessment Fee)8.5%
Howard Johnson by WyndhamWyndham5%3.5% (2% marketing contribution plus 1.5% room sales charge)8.5%
Travelodge by WyndhamWyndham5%3.5% (2% marketing plus 1.5% reservation fee), plus a daily charge of 5 to 10 cents per room8.5%
Spark by HiltonHilton5.5%3.5%9%
Red Roof PLUS+Red Roof5% of GRR4% of GRR9%
Days Inn by WyndhamWyndham5.5%3.8% (System Assessment Fee)9.3%
SureStay HotelBWH Hotels4% of gross rooms revenue4% of gross rooms revenue (sales & marketing fee)—

What the headline number leaves out

Royalty and marketing are only the start. Most brands also charge for reservations and distribution, loyalty-program assessments on member stays, required technology and property-management systems, training and quality assurance. Brands also negotiate: ramp-up royalty discounts, key money and conversion incentives are common. Ask Red Roof for its estimate of total fees as a share of rooms revenue, and read Items 5 and 6 of the current FDD before you sign. Our analysis of what owners really pay a brand puts the typical all-in bill at 10% to 13% of rooms revenue.

Other Red Roof brands

Red Roof PLUS+ · HomeTowne Studios by Red Roof · The Red Collection

Keep going

The Hotelier Times is a publisher, not a franchise adviser. Fees change; confirm every figure in the brand’s current Franchise Disclosure Document. Spot an error? Email nathan@hoteliertimes.com.

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