Hometowne Studios By Red Roof Franchise Cost & 2026 FDD Data
79/100
Strongest tier
79 this brand65 Lodging medianlikely 73–85: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#188 of 3,069 graded brands
Why an A: Helped by financial health, unit growth, legal record and transparency. See all six factors
- Total investment
- $420K – $1.4M
- excl. land
- Avg gross sales
- partial, no system average
- SBA charge-off
- 1 resolved of 10 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Hometowne Studios By Red Roof franchise requires a total initial investment of $420K – $1.4M, excluding land, including a $30K franchise fee. Once open, the ongoing royalty is 5.5%. The 2026 FDD on file does not yield a unit-revenue figure we can publish. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: 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
Quick verdict · vs Lodging median
Top edge: green = better than the Lodging median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSItem 19 discloses hotel operating metrics (Average Daily Room Rate, Occupancy Rate, RevPAR, and Brand Contribution %) for 27 Affiliate-Owned, 51 Franchised, and 78 combined Hotels open at least one year during 2025 -- not whole-unit gross sales or net income figures, so avg_gross_sales/avg_net_income are not populated. 2025 figures: Franchised (51 hotels) avg Daily Room Rate $60.59, avg Occupancy 61.6%, avg RevPAR $37.30, avg Brand Contribution 36.5%; Affiliate-Owned (27 hotels) avg Daily Room Rate $53.31, avg Occupancy 69.8%, avg RevPAR $37.22, avg Brand Contribution 55.0%; Combined (78 hotels) avg Daily Room Rate $56.95, avg Occupancy 65.4%, avg RevPAR $37.26, avg Brand Contribution 45.2%.
- GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 8 (9 opened, 1 closed).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
AT STAKEOne unit at the Item 7 midpoint: $115K a year in payments on assumed SBA 7(a)-style terms.You put in about $177K of your own cash and personally guarantee a $710K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- The franchisor receives rebates or payments from suppliers you buy from (Item 8, required suppliers).
Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no pending lawsuit naming the franchisor and the full filing on file, and an Item 19 average from 78 units. Not on file here, so ask: SBA charge-off rate against the category median, jury-trial waiver and owner-operator rule.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 90% below the Lodging median ($8.5M).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
published investment is a conversion of an existing 65-room property. The same filing prices new construction separately at $11,734,393-$14,457,291.
Do you qualify? The filing states no minimum net worth or liquid capital. Ask HomeTowne Studios, LLC (Item 1: 7815 Walton Parkway, New Albany, Ohio 43054) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Application Fee/Initial Franchise Fee | $35K | $35K | |
| Opening Package | $2.5K | $2.5K | |
| Landscaping | $0 | $44K | |
| Facility Renovation | $117K | $475K | |
| Furniture, Fixtures, Soft Goods and Equipment | $120K | $417K | |
| Guest Wi-Fi System | $0 | $25K | |
| Signage | $6.5K | $56K | |
| Opening Inventory and Supplies | $5K | $17K | |
| Voice Telephone System | $0 | $24K | |
| Reservation Platform / PMS Software License Fee and Computer Systems including Front Desk and Back-Office | $16.5K | $22K | |
| Insurance | $0 | $73.5K | |
| Training Expenses | $5.5K | $9.1K | |
| Additional Funds | $112K | $154K | |
| Total initial investment | $420K | $1.4M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. 3% of Gross Room Revenues (subject to increase up to a maximum of 5%) | 3.0% of gross sales |
Technology feesThe filing's detailReservation Platform/PMS software license fee $15,000 (Item 5); recurring Reservation Platform/PMS, Help Desk, Hardware and Software Support fee currently $490/month plus $3.85/room/month (Item 6). | See the list |
| Transfer fee | $15,000 |
| Total fee loadnear the Lodging median of 8.5% | 8.5% of sales |
What do units actually make?
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Hometowne Studios By Red Roof unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $887K Item 7 midpoint is a $710K loan, paid over 10 years at 10.5%: $115K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Hometowne Studios By Red Roof's past SBA 7(a) loans averaged 7.3% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $177K Assumption (the part the loan does not cover of the $887K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $710K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Item 19 of the Hometowne Studios By Red Roof FDD discloses figures for part of the system but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Hometowne Studios By Red Roof unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
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.
Item 7 midpoint of $420K to $1.4M
Item 7's $112K to $154K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $710K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
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: 2026 FDD · filed by HomeTowne Studios, LLC
Financial performance
Item 19 discloses hotel operating metrics (Average Daily Room Rate, Occupancy Rate, RevPAR, and Brand Contribution %) for 27 Affiliate-Owned, 51 Franchised, and 78 combined Hotels open at least one year during 2025 -- not whole-unit gross sales or net income figures, so avg_gross_sales/avg_net_income are not populated. 2025 figures: Franchised (51 hotels) avg Daily Room Rate $60.59, avg Occupancy 61.6%, avg RevPAR $37.30, avg Brand Contribution 36.5%; Affiliate-Owned (27 hotels) avg Daily Room Rate $53.31, avg Occupancy 69.8%, avg RevPAR $37.22, avg Brand Contribution 55.0%; Combined (78 hotels) avg Daily Room Rate $56.95, avg Occupancy 65.4%, avg RevPAR $37.26, avg Brand Contribution 45.2%.
Percentile ranks within Lodging
Each rank is among the Lodging brands that report that figure (the count is under each bar).
vs Lodging medians
How Hometowne Studios By Red Roof 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.
Who are you contracting with?
HomeTowne Studios, LLC, owned by Red Roof Franchising, LLC.
Item 21 (audited financials) · audited statements · 2026 FDD
The franchisor's own finances
The franchisor paid out about 104% of its latest net income as dividends. A franchisor that keeps little of its own profit has less of a cushion if the system has a bad year; ask how support and the ad fund are funded.
The figures, with their pages
- Net income
- $13.4Mlatest year · FDD Item 21
- Dividends paid
- $14.0M104% of net income (our arithmetic) · FDD p.92
- Total assets
- $51.8MFDD Item 21
- Equity
- $26.7MFDD Item 21
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- HomeTowne Studios, LLC
- Parent company
- Red Roof Franchising, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- WRRH LP
- FDD Item 1, page 9 of the 2026 FDD
- Predecessor
- Crossland Suites
- Prior franchisor entity
- CEO title
- President
- Zack Gharib
- Incorporated in
- Delaware
- HQ
- 7815 Walton Parkway, New Albany, Ohio 43054
- Franchisor revenue
- $84.8M
- latest fiscal year in the 2026 FDD; $92.0M the year before
Same owner · FDD Item 1, page 9
2 other brands on this site name WRRH LP as parent or ultimate parent in their own FDD.
- Red Roof Inn (grade A)
- The Red Collection (grade B)
Grouped by the owner's name as each filing prints it (this page: the 2026 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
HomeTowne Studios, LLC franchises economy extended-stay and transient lodging hotels under the HomeTowne Studios by Red Roof, HomeTowne Studios & Suites by Red Roof, HomeTown Inn, and HomeTowne Inn brand names. Hotels feature full or queen beds, in-room kitchens/kitchenettes, on-site guest laundry, weekly housekeeping, and vending, typically without full-service amenities like restaurants or room service.
- CEO
- Zack Gharib
- Franchised outlets in
- 18 states and territories
- Item 20 Table 3, at year end
Is the system healthy?
+28 franchised outlets over the two years to 2025 (25 to 53, +112.0% in total, +45.6% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 27
- Corporate units in the system
- % franchised
- 66%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 19
- 0.24 per open outlet · Item 20 Table 5
- Projected new
- 9
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units rose from 25 in 2023 to 53 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) Table 3 · franchised outlets at year end
Where current outlets are
Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 18 statesNo current outlet
53 franchised outlets at year end in 18 states (Item 20 Table 3).
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 10
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $30.9M
- Average loan
- $3.1M
- loan volume divided by loans
- Charge-off rate
- 1 resolved of 10 loans: too few to judge
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 1 resolved of 10 loans: too few to judge
- Recent-loan charge-off
- 1 resolved of 10 loans: too few to judge
- Lenders
- 5
- Average interest rate
- 7.3%
- Jobs reported
- 111
- Lender concentration
- 40%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Borrower mix: of the 10 loans with a recorded business age, 1 (10%) went to startups or businesses under two years old and 9 (90%) to established businesses or ownership changes.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Hometowne Studios By Red Roof from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 83%
- Average interest rate
- 7.3%
- Lender concentration
- 40%
- Jobs reported
- 111
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| GBank | ||
| 4 | $15.7M | Not on file |
| Cadence Bank | ||
| 2 | $5.8M | Not on file |
| Wallis Bank | ||
| 2 | $2.9M | Not on file |
| The MINT National Bank | ||
| 1 | $1.5M | Not on file |
| Everwise Credit Union | ||
| 1 | $5.0M | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| TX Texas | 2 | 0 | Too few1 resolved |
| FL Florida | 1 | 0 | Too few0 resolved |
| IL Illinois | 1 | 0 | Too few0 resolved |
| IN Indiana | 1 | 0 | Too few0 resolved |
| MI Michigan | 1 | 0 | Too few0 resolved |
| NC North Carolina | 1 | 0 | Too few0 resolved |
| PA Pennsylvania | 1 | 0 | Too few0 resolved |
| SC South Carolina | 1 | 0 | Too few0 resolved |
| VA Virginia | 1 | 0 | Too few0 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Borrower profile
The SBA's own business-age labels (3)
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 79/100 (category median 65); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; statements are the parent's, so this stays near neutral; dividends paid equal to 104% of net income (Item 21; shown, not scored)
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Helps+28 franchised outlets over the two years to 2025 (25 to 53, +112.0% in total, +45.6% a year compounded); turnover 1.3%
- Scale Neutral53 franchised units, +27 company-owned (80 in all); franchising since 2018
- Legal HelpsNo litigation naming the franchisor in Item 3; a bankruptcy disclosed in Item 4 (an officer's)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (+1 point)Rounding: the score is kept as a whole number, which moved it by 1 point.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
1) HP Holding LLC/HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC (D.N.J., pending): former franchisee alleges breach of franchise agreement, tortious interference, and NJ Franchise Practices Act violations. 2) State of Maryland v. Red Roof Franchising, LLC (2014); Maryland Securities Commissioner consent order for offering/selling a franchise while registration renewal was pending; concluded. 3) Red Roof Franchising, LLC v. Janam Madison Lodging LLC et al. (2025); collection action filed by RRF against a franchisee in Georgia state court.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
HTS's General Counsel, Gerrod Bede, previously served as General Counsel of ASTECH Engineered Products, Inc. (n/k/a AEP Legacy, Inc.), which filed for Chapter 11 reorganization on July 15, 2022 (Case No. 22-10635-BLS, Bankr. Del.); a plan of liquidation was confirmed May 20, 2024 and the case closed January 2, 2026. No bankruptcy of the franchisor itself was disclosed.
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
The revenue figures are in the Franchisor tab, under The franchisor.
Franchisor entity revenue (not unit-level)
ⓘ 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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Litigation case detail3 matters · Item 3
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
Pending (1)
HP Holding LLC and HP Holding Hospitality LLC v. Red Roof Inns, Inc. and Red Roof Franchising, LLC
pendingBrought by a franchisee · Red Roof Franchising, LLC (RRF, our parent) and Red Roof Inns, Inc. (RRI, a higher parent) · filed 2023-10-05 · United States District Court for the District of New Jersey · 23-cv-20907-RMB-MJS
“… Civil Action No. 23-cv-20907-RMB-MJS (United States District Court for the District of New Jersey).”Page 13 of the 2026 FDD, Item 3
Concluded (1)
State of Maryland v. Red Roof Franchising, LLC
concludedGovernment or regulatory action · Red Roof Franchising, LLC (RRF, our parent) · filed 2014-09-24 · Securities Commissioner of Maryland · 2014-0330
“… No. 2014-0330 (Securities Commissioner of Maryland, September 24, 2014) As of September 24, 2014 the Securities Division of the Office of the Attorney General of Maryland (the “Securities Division”) initiated an”Page 13 of the 2026 FDD, Item 3
Status not stated in the filing (1)
Red Roof Franchising, LLC v. Janam Madison Lodging LLC et al
Brought by the franchisor · Red Roof Franchising, LLC (RRF, our parent) · filed 2025 · State Court of Rockdale County, Georgia · 2025-SV-4277
“… Case No. 2025-SV-4277 (State Court of Rockdale County, Georgia).”Page 14 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | Yes |
| Territory size | varies (as small as one or two blocks or as large as a small town) |
| Franchisor can compete | Yes |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Governing law | Ohio |
Items 10 (financing), 11 (training and support)
Training and operations
- On-the-job training
- 8 hrs
- Ongoing training
- Required
- Field support
- 8 hrs/yr
- On-site visits per year
- Time to open
- 3–9 mo
- From signing to launch, renovating an existing property, the format Item 7 headlines (newly built: 12 to 18 months) (FDD p.54)
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Reservation Platform / PMS
- Operating tech stack
Items 5 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
6 current outlets listed
Each record has a phone number and state. No franchisee names or cities. 6 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 6 of the 53 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Hometowne Studios By Red Roof franchise?
Per the 2026 FDD, the total investment to open a Hometowne Studios By Red Roof franchise ranges from $420K to $1.4M, with an initial franchise fee of $30K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include land.
What do Hometowne Studios By Red Roof franchise owners earn?
Item 19 of the Hometowne Studios By Red Roof 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 Hometowne Studios By Red Roof?
Hometowne Studios By Red Roof is franchised by HomeTowne Studios, LLC. Its parent company is Red Roof Franchising, LLC. The ultimate parent named in the FDD is WRRH LP. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Hometowne Studios By Red Roof 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 Hometowne Studios By Red Roof FDD and qualifies whose outlets they describe.
What is Hometowne Studios By Red Roof's franchise failure rate?
There is no published franchise failure rate, and Hometowne Studios By Red Roof has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Hometowne Studios By Red Roof franchise locations are there?
Per the 2026 FDD, Hometowne Studios By Red Roof has 53 franchised units and 27 company-owned (80 in all). In the latest year, the number of franchised outlets grew by 8 (9 opened, 1 closed).
Is Hometowne Studios By Red Roof a good franchise to buy?
FranchiseVerdict gives Hometowne Studios By Red Roof an A Verdict grade (Strongest tier) with a verdict score of 79 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit growth, legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Lodging franchises
Similar investment first, then by grade
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.