ont 16-24 Your Hotel audit training) Desk Personnel) Direct Billing-Accounts Receivable, Back Office Computer, Outlook Express, 0 3 to 5 Your Hotel Purchasing, RingRedi, Intranet, Medallia, Guest Redi
From the filings
HomeTowne Studios by Red Roof
LodgingSoftware purchasing at HomeTowne Studios by Red Roof is controlled at the corporate level, with Senior Vice President of Technology Sharee Brell and Senior Vice President of Revenue Strategy Robert Goad shaping the tech stack. The brand already mandates a reservation platform/PMS, Guest Redi, RingRedi, Medallia, and a revenue management system. With 80 total units (53 franchised, 27 company-owned) and 17.8% year-over-year unit growth, the addressable market for vendors is modest but expanding.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8.5%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
the Hotels by the total room revenue generated by all occupied rooms at the Hotels. 5. Median is defined as the middle value of a sorted list of numbers. 6. Smith Travel Research (STR) is the leading
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
There is no contractual limitation to our right to receive and access this information.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
To the extent the Reports for any calendar month or partial calendar month are not furnished to Franchisor by Franchisee’s Computer System, as provided herein, Franchisee shall submit such Reports to Franchisor within twenty (20) days following the end of each calendar month.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We sublicense the Reservation Platform / PMS software to our franchisees.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor reserves the right at any time to require, and Franchisee agrees to conform to, any change in or presentation of the
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
35Item 8
The estimated proportion of any purchases and leases required to be made by franchisees from us or from Designated Suppliers is (a) 40% of total purchases and leases in establishing the franchised business and (b) 35% of total purchases and leases in operating the franchised business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
you must submit a request to us in writing, together with any evidence of conformity to our specifications that we may reasonably require, along with a $5,000 supplier review fee.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to purchase items from suppliers other than Designated Suppliers, you must submit a request to us in writing, together with any evidence of conformity to our specifications that we may reasonably require, along with a $5,000 supplier review fee.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
You must comply with the then-current Payment Card Industry Data Security Standards (“PCI/DSS”) as those standards may be revised by the PCI Security Standards Council, LLC or any successor organization
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor or its designated agents shall have the right at any time to examine and copy, at Franchisor’s expense, all books, records and tax returns of Franchisee related to the Hotel and, at Franchisor’s option, to have an independent audit made.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor shall have the right to add to or otherwise modify the Manuals from time to time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must submit to us a proposed site for the Hotel when you submit your Application.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee is not permitted to create, develop or manage its own property website or booking engine without authorization from Franchisor.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You must participate in the RediRewards Preferred Member Program and any other guest loyalty program that we require.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If a Cooperative is established for the area in which the Hotel is located during the term of this Franchise Agreement, Franchisee shall become a member no later than thirty (30) days after written notification by Franchisor that the Cooperative has commenced operation.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase certain brand specific and HomeTowne Studios logoed items, marketing materials, exterior and interior signage, the computer system, Reservation Platform / PMS, technology equipment, furnishings, fixtures and equipment for your Hotel from our Designated Suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase certain brand specific and HomeTowne Studios logoed items, marketing materials, exterior and interior signage, the computer system, Reservation Platform / PMS, technology equipment, furnishings, fixtures and equipment for your Hotel from our Designated Suppliers.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must retain the services of a supplier designated by us to interface your credit card processing with the Reservation Platform PMS.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisor may direct that all monthly payments required under this Section be made to a bank account designated by Franchisor by wire transfer, by automated clearinghouse (ACH) transfer, or by other means which Franchisor may specify from time to time.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The business must be directly supervised “on-premises” by a manager who has successfully completed our RED Advantage Training Program described in Item 11 and who is in compliance with the manager specifications and requirements set forth in the Manuals.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall not purchase, install, utilize or maintain any computer software, hardware or other telecommunications line that has not been previously approved in writing by Franchisor.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
There is no contractual limitation to our right to receive and access this information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may offer or require additional training during the term of the Franchise Agreement and charge a fee for attendance (which may be charged regardless of attendance).
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
Meetings and Currently, $800 to Upon demand You, your Manager or other approved Conferences $3,500, plus expenses executive, owner or employee may be required to attend our Annual Conference or Annual Brand Meeting and pay an attendance fee.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Is a minimum grand opening advertising spend required?Franchise agreement
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
The vendor opportunity at HomeTowne Studios
HomeTowne Studios by Red Roof operates 80 extended-stay lodging locations, 53 of which are franchised and 27 company-owned. The brand added units at a 17.8% clip year-over-year, signaling an expanding footprint that could create incremental software seats. While the total unit count is modest compared to large restaurant or retail chains, the centralized procurement structure means a single HQ decision can deploy a vendor across the entire system. The franchise is independently owned, with no parent company on file, so the buying center sits entirely within the brand’s Ohio headquarters.
The operator base is small: 12 mapped operators control roughly 14 located units, with only two multi-unit operators (each in the 2–9 unit band). The remaining 10 operators run a single location. This concentrated operator profile reinforces that technology decisions flow from the top rather than from a fragmented franchisee base. For software vendors, the pitch runs through the corporate office, not through individual owners.
Who controls software purchasing
The 2026 FDD lists five senior executives in Item 1. The most relevant for a software vendor are Sharee Brell, Senior Vice President of Technology, and Robert Goad, Senior Vice President of Revenue Strategy. Brell oversees the technology function and likely owns vendor evaluation and system architecture. Goad’s purview over revenue strategy ties directly to the mandated revenue management software system, making him a probable stakeholder for any tool that touches pricing, distribution, or demand forecasting.
Zack Gharib, President, and Matthew Hostetler, Chief Development Officer, may also weigh in on major capital or enterprise-wide commitments, particularly as the brand continues to grow. Timothy Lipka, SVP of Franchise Operations, bridges corporate mandates and franchisee execution. Any vendor that requires franchisee adoption will need Lipka’s team to drive compliance.
Mandated and current tech stack
The FDD mandates five technology categories. Guest Redi and RingRedi are named systems, likely covering guest management and ancillary operational workflows. Medallia by Medallia, Inc. is the mandated customer experience platform, which means the brand already has a voice-of-customer and reputation management vendor in place. The reservation platform/PMS and the revenue management software system are both mandated, but the FDD does not name the specific vendors for these two categories. That gap represents a potential opening if the current contracts are approaching renewal or if the brand is open to evaluating alternatives.
Because these systems are mandated rather than merely recommended, franchisees have no discretion to choose their own tools. A vendor that wins the corporate relationship gains system-wide deployment across all franchised and company-owned units.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract, so the formal procurement model—whether designated supplier, approved supplier, or open—is not publicly disclosed. However, the presence of multiple mandated systems strongly suggests a designated-supplier or tightly controlled approved-supplier framework. Vendors should expect a corporate-led RFP or direct negotiation process rather than a decentralized, franchisee-driven purchasing cycle.
Renewal timing offers another signal. The initial franchise term is 20 years, and Item 17 describes a 10-year renewal term. To renew, a franchisee must execute the then-current form of franchise agreement, which may contain materially different terms from the original agreement. That clause gives the franchisor leverage to update technology requirements at each renewal window. With 53 franchised units and a 20-year initial term, the first wave of renewals may still be years away, but any franchisee that signs a renewal triggers an opportunity to enforce updated tech mandates.
How to read the HomeTowne Studios FDD
The embedded PDF viewer below contains the full 2026 Franchise Disclosure Document. For software vendors, the most actionable sections are Item 1 (executives and ownership), Item 11 (mandated systems and vendors), and Item 17 (renewal conditions and term). Item 8, which would normally describe procurement restrictions, is absent from the extract, so vendors should request the complete FDD or engage directly with the technology leadership to understand supplier qualification requirements.
The brand’s unit economics—AUV and average unit volume—are not disclosed in the FDD, so vendors cannot model franchisee-level ROI from public data alone. The royalty rate is 5.5%, which is standard for the lodging segment and does not suggest unusual margin pressure that would constrain technology budgets.
For a ranked target list of franchise systems that match your software category, FranCloud can map mandate gaps, contract windows, and buyer contacts across the entire franchise economy.
Questions vendors ask
HomeTowne Studios by Red Roof, answered from the filing
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FDD alert
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Operator footprint
Who runs the locations
12 operators run 14 mapped locations. 2 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| MI | 3 |
|---|---|
| GA | 2 |
| TX | 2 |
| NJ | 2 |
| OH | 1 |
Ownership
The portfolio behind HomeTowne Studios by Red Roof
strategic_multibrand of Red Roof.
Sibling brands
Related Lodging brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.