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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.
Red Roof Inn fees at a glance
| Initial fee | $27,000 for up to 100 rooms, plus $3,000 application fee |
|---|---|
| Royalty | 5% |
| Marketing or program fee | 4% (Marketing and Reservation Fee) |
| Royalty plus marketing | 9% of rooms revenue |
| Franchisor | Red Roof |
| Segment | Economy |
| Disclosure year | 2025 |
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 brand | Franchisor | Royalty | Marketing | Headline |
|---|---|---|---|---|
| Microtel Inn & Suites by Wyndham | Wyndham | 6% | 2% (marketing and reservation contribution) | 8% |
| Econo Lodge | Choice Hotels | 5% | 3.5% (Marketing and Reservation Fee) | 8.5% |
| Rodeway Inn | Choice Hotels | 5% | 3.5% (Marketing and Reservation Fee) | 8.5% |
| Super 8 by Wyndham | Wyndham | 5.5% | 3% (System Assessment Fee) | 8.5% |
| Howard Johnson by Wyndham | Wyndham | 5% | 3.5% (2% marketing contribution plus 1.5% room sales charge) | 8.5% |
| Travelodge by Wyndham | Wyndham | 5% | 3.5% (2% marketing plus 1.5% reservation fee), plus a daily charge of 5 to 10 cents per room | 8.5% |
| Spark by Hilton | Hilton | 5.5% | 3.5% | 9% |
| Red Roof PLUS+ | Red Roof | 5% of GRR | 4% of GRR | 9% |
| Days Inn by Wyndham | Wyndham | 5.5% | 3.8% (System Assessment Fee) | 9.3% |
| SureStay Hotel | BWH Hotels | 4% of gross rooms revenue | 4% 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
- Compare franchise fees for all 164 brands
- Price per key, cap rate and OTA cost calculators
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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.