Comfort Inn Franchise Cost, Revenue & Review 2026
- Investment
- $319K – $2.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 1.8%
- on 225 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Comfort Inn franchise requires a total initial investment of $319K – $2.3M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2024 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 1.8% charge-off rate across 225 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $319K – $2.3M
- 17th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 1,664
- 72nd pct Lodging
- SBA charge-off
- 1.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $319K – $2.3M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports Historical rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 86/100 (higher is better). SBA loan charge-off rate of 1.8% across 225 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +9 franchised outlets in the latest year (45 opened, 36 closed); 123 signed but not yet open (Item 20).
- LEGAL83 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Choice Hotels International, Inc.
- Parent company
- Choice Hotels International, Inc.
- FDD Item 1, page 10 of the 2024 FDD
- Predecessor
- Quality Courts Motels, Inc. (later Choice Hotels Franchising, Inc.); now Choice Hotels International, Inc.
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- DE
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.4B prior year
Same owner · FDD Item 1, page 10
12 other brands on this site name Choice Hotels International, Inc. as parent or ultimate parent in their own FDD.
- ASCEND HOTEL COLLECTIONA
- Clarion / Clarion PointeB
- Country Inn & Suites by RadissonB
- Econo LodgeB
- Everhome SuitesB
- MainStay SuitesA
- Park Inn by RadissonD
- RODEWAY INNB
- Radisson IndividualsC
- Sleep InnB
- Suburban StudiosB
- WoodSpring SuitesB
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
Franchisor of limited-service, upper mid-scale hotels operating under the COMFORT INN, COMFORT INN & SUITES, and COMFORT SUITES trademarks
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2024
Can you afford it, and what does the money buy?
Entry cost runs 85% below the typical lodging franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $244K | $2.2M |
| Total initial investment | $319K | $2.3M |
Source: Comfort Inn 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $319K – $2.3M
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Inventory (initial) | $24K – $136K |
What do units actually make?
Source: FDD 2024 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Comfort Inn is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Comfort Inn unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
An occupancy metric, not unit revenue
- Item 19 type
- Historical
- Sample size
- 1,600
- vs category median 98 · large
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
Compared against 175 Lodging brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
6.0% royalty + 3.5% ad fund — higher than the category average of 5.0%.
Disclosure
Item 19 reports Historical rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Comfort Inn Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,664
- Opened
- 45
- Last reporting year
- Closed
- 36
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 9
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 9
- Transferred
- 107
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 123
- 0.07 per open outlet · Item 20 Table 5
- Projected new
- 38
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
77 current owners across 14 states.
- AL 22
- AZ 18
- AR 13
- CA 9
- GA 4
- TX 3
- CO 1
- CT 1
- FL 1
- MO 1
- MS 1
- NM 1
- +2 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 225
- Loan volume
- $283.1M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 1.8%
- on 225 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 98.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 99
- Defaults
- 4
- Typical loan rate
- 5.7%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7211
- Jobs supported
- 1,064
- 0.4 per loan
- Lender concentration
- 9%
- top lender's share
Vintage analysis
Comfort Inn charge-off rate by loan vintage
Top lenders financing Comfort Inn franchisees
Showing 3 of 99 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Comfort Inn from SBA 7(a) FOIA data.
- Principal loss rate
- 1.2%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 5.66%
- Avg chargeoff amount
- $875K
- Lender concentration
- 9.3%
- Job velocity
- 0.4 per $100K
- Jobs supported
- 1,064
Top SBA lendersTop lender holds 9% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 21 | N/A | N/A | |
| 2 | 16 | N/A | N/A | |
| 3 | 10 | N/A | N/A | |
| 4 | 9 | N/A | N/A | |
| 5 | 8 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 30 | 0 | 0.0% |
| CACalifornia | 28 | 0 | 0.0% |
| GAGeorgia | 20 | 2 | 10.5% |
| OHOhio | 10 | 0 | 0.0% |
| SCSouth Carolina | 10 | 0 | 0.0% |
| ALAlabama | 9 | 0 | 0.0% |
| ILIllinois | 8 | 0 | 0.0% |
| MSMississippi | 8 | 0 | 0.0% |
| NCNorth Carolina | 7 | 0 | 0.0% |
| TNTennessee | 7 | 0 | 0.0% |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 1.8% charge-off rate across 225 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 1.8% — 89% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 Section I: 3 pending cases (Knuth class action in Canada re DMF fees; Jai Sai Baba franchisee discrimination suit/arbitration; T&T Management breach case). Section II: Large number of actions by Choice to recover unpaid royalties/liquidated damages from individual franchisees in prior fiscal year (2023), plus 1 IP enforcement action. Section III: 4 resolved cases including a $779,398 judgment against Choice in Highmark Lodging and $85,000 settlement in Kohl case.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements of Choice Hotels International, Inc. (parent franchisor) for years ended December 31, 2023, 2022, 2021 (Exhibit C), in thousands. FY2023 total revenues $1,544.165M include $784.16M of pass-through other revenues from franchised and managed properties; royalty/licensing/management fees $513.412M, initial franchise fees $27.787M. Net worth (total shareholders' equity) is low ($35.598M) due to $2.047B treasury stock against $1.756B retained earnings.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 83 |
View Item 3 litigation summary
Item 3 Section I: 3 pending cases (Knuth class action in Canada re DMF fees; Jai Sai Baba franchisee discrimination suit/arbitration; T&T Management breach case). Section II: Large number of actions by Choice to recover unpaid royalties/liquidated damages from individual franchisees in prior fiscal year (2023), plus 1 IP enforcement action. Section III: 4 resolved cases including a $779,398 judgment against Choice in Highmark Lodging and $85,000 settlement in Kohl case.
Items 10, 11
Training & Operations
- Training duration
- 3 days
- Ongoing training
- Required
- Site selection
- Franchisee selects site; franchisor must approve location
- Franchisor financing
- Offered
- Item 10
- POS system
- choiceADVANTAGE
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: choiceADVANTAGE
Item 20 · call current owners
Franchisee Contacts
78 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Comfort Inn franchise?
The total investment to open a Comfort Inn franchise ranges from $319K – $2.3M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Comfort Inn franchise owners earn?
Item 19 of the Comfort Inn FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Comfort Inn?
Comfort Inn is franchised by Choice Hotels International, Inc.. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Comfort Inn FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Comfort Inn FDD and qualifies whose outlets they describe.
What is Comfort Inn's franchise failure rate?
Based on SBA 7(a) loan data, Comfort Inn has a charge-off rate of 1.8% across 225 loans, meaning 1.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Comfort Inn franchise locations are there?
As of their most recent FDD filing, Comfort Inn has 1,664 total units in the United States, including 1,664 franchised units and 0 company-owned units. 45 new units were opened in the latest reporting year.
Is Comfort Inn a good franchise to buy?
FranchiseVerdict rates Comfort Inn as a A-grade franchise with a verdict score of 86 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.