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From the filings
HQ-led decisions
Red Roof Inn
Financial servicesRed Roof runs 623 Inns nationwide — 596 franchised, 27 affiliate-owned — on a 20-year initial term and a 5% royalty, with a financial performance representation in Item 19. It sits inside the Red Roof multibrand family alongside HomeTowne Studios by Red Roof and The Red Collection.
For software vendors selling into US franchise brands.
Live signals
Total units
623
596 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2026
Royalty
5%
of gross sales
Ad fund
4%
national + local
Initial fee
$27K
per unit
Investment range
$7.25M–$8.90M
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing
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.
9%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.
STRCoStar
for the Inns by the total room revenue generated by all occupied rooms at the Inns. 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
24 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 8 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
9.1.2 Upon Franchisor’s request, submit to Franchisor within ninety (90) days following the end of each fiscal year (in the form prescribed by Franchisor):
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
RRI – 04/26 FDD 37 Items That Must Be Purchased From RRF And Our Affiliates You are required to use our Reservation System.
Is there a franchisee advisory council, association or committee?
YesItem 11
We do from time to time review marketing and advertising plans and programs with the Red Roof Inn Franchise Advisory Council (the “FAC”), a council we established to advise us on a wide range of issues.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor may also establish and coordinate advertising, marketing and sales programs, guest satisfaction programs and other activities among System inns, including inns owned or operated by its Affiliates, on a local or regional basis and Franchisee shall participate in and comply with such programs and activities…
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?
39Item 8
The estimated proportion of any purchases and leases required to be made by franchisees from us or from Designated Suppliers is (a) 58% of total purchases and leases in establishing the franchised business and (b) 39% of total purchases and leases in operating the franchised business.
Does the franchisor charge a fee to evaluate a proposed supplier?
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.
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?
YesFranchise agreement
Franchisee shall 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, including (i) implementing (at Franchisee’s expense) all security requirements that the PCI Security…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
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 RRI - 04/26 Franchise Agreement 16 to the Inn 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
1. Approve the site for your Inn prior to approving 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?
YesFranchise agreement
Franchisee must participate in any guest loyalty programs that Franchisor may initiate and amend from time to time at its sole discretion (a “Preferred Members Program”), including, but not limited to, the “RediRewards” Preferred Member Program.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If your Inn is within the area of an existing Cooperative when the Inn opens for business, you must immediately join the Cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
In instances in which there is a Designated Supplier, we do not permit you to purchase such items or services from alternative sources.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase certain brand specific and Red Roof Inn logoed items, marketing materials, exterior and interior signage, the computer system, Reservation Platform / PMS, technology equipment, furnishings, fixtures and equipment for your Inn 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?
YesItem 8
You are required to use our Reservation System.
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 executive, Conferences $3,500, plus expenses 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 2 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Item 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
The vendor opportunity at Red Roof Inn
Red Roof runs 623 Inns nationwide — 596 franchised, 27 affiliate-owned — on a 20-year initial term and a 5% royalty, with a financial performance representation in Item 19. It sits inside the Red Roof multibrand family alongside HomeTowne Studios by Red Roof and The Red Collection.
Who controls software purchasing
Item 11 centers technology purchasing at Red Roof HQ. Franchisees must license the Reservation Platform/PMS directly from Red Roof or an affiliate and pay a software license fee; Red Roof generated $3,782,574 from that platform in 2025 (4.91% of its $77,088,942 in annual revenue), plus $392,171 (0.51%) from RediCall call-center services. Franchisees must also use the revenue-management software system Red Roof designates, maintain computer hardware and software meeting Red Roof's standards, obtain an EMV-compliant card reader and interface connection box, and retain a Red Roof-designated supplier to connect card processing to the PMS — plus pay for IT help-desk support. Senior Vice President of Technology Sharee Brell, President Zack Gharib, and Chief Development Officer Matthew Hostetler sit atop that structure per Item 2.
Tech named in the FDD, and what is actually required
The Reservation Platform/PMS and the designated revenue-management software system are both required by Item 11's own words. Medallia is named in the filing under Item 11; STR by CoStar is named under Item 19 — neither is stated as required here.
Procurement, renewals, and timing
Item 8 runs a Designated Supplier model covering the Reservation Platform/PMS software and the revenue-management software system, plus brand-specific logoed items, signage, and technology equipment — an estimated 58% of a new Inn's initial purchases and 39% of ongoing purchases. Franchisees can request an alternate supplier through a formal process carrying a $5,000 review fee. Renewal, per Item 17, requires a clean payment and compliance record, completed training, a general release, a fee equal to 50% of the then-current initial franchise fee, and signing Red Roof's then-current agreement for a further 10-year term. The 29 mapped operators run entirely single-unit, concentrated in Alabama (26) and Arkansas (3).
How to read the Red Roof Inn FDD
The embedded PDF viewer below is Red Roof's 2026 Franchise Disclosure Document. Item 11 has the exact PMS and revenue-management-software language; Item 8 has the designated-supplier percentages.
Talk to FranCloud for a ranked list of lodging franchise systems like Red Roof Inn.
Questions vendors ask
Red Roof Inn, answered from the filing
Senior Vice President of Technology Sharee Brell is the named technology executive; Item 11 requires every franchisee to license the Reservation Platform/PMS directly from Red Roof or its affiliate and pay licensing and IT-support fees to HQ.
Red Roof requires the Reservation Platform/PMS and a designated revenue-management software system, per Item 11's own words, plus an EMV-compliant card reader and a designated supplier to interface card processing. Medallia is named under Item 11; STR by CoStar is named under Item 19.
623 Inns — 596 franchised, 27 affiliate-owned — under the Red Roof multibrand parent, alongside HomeTowne Studios by Red Roof and The Red Collection.
Item 8 designates suppliers for the Reservation Platform/PMS and revenue-management software (both sublicensed from Red Roof), covering an estimated 58% of a new Inn's initial purchases and 39% of ongoing purchases; alternate suppliers cost a $5,000 review fee.
Renewal requires a clean payment record, a renewal application, training, a fee equal to 50% of the then-current initial franchise fee, and signing Red Roof's then-current agreement for a further 10-year term, inside a 20-year initial term.
The embedded PDF viewer below is Red Roof's 2026 Franchise Disclosure Document.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
Tell me when this brand refiles.
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Operator footprint
Who runs the locations
29 operators run 29 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit29
Top states by locations
| AL | 26 |
|---|---|
| AR | 3 |
Ownership
The portfolio behind Red Roof Inn
strategic_multibrand of Red Roof.
Sibling brands
Related Financial services brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.