Rodeway Inn Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Rodeway Inn is a Choice Hotels economy-lodging franchise of budget roadside properties. Franchisees own and operate individual hotels, running front desk, housekeeping, and maintenance on Choice's systems.
FranchiseVerdict summary · 2026
A RODEWAY INN franchise requires a total initial investment of $109K – $702K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 4.0% charge-off rate across 339 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $109K – $702K
- 3rd pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 432
- 63rd pct Lodging
- SBA charge-off
- 4.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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 $109K – $702K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports average occupancy rate, average daily rate and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better). SBA loan charge-off rate of 4.0% across 339 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL98 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.
- Predecessor
- Quality Courts Motels, Inc.
- Prior franchisor entity
- CEO title
- Director, President and Chief Executive Officer
- Patrick S. Pacious
- Incorporated in
- Delaware
- HQ
- 915 Meeting Street, Suite 600, North Bethesda, Maryland 20852
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $1.5B
- vs $1.6B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Patrick S. Pacious
- Headquarters
- MD
- Founded
- 1939
- FDD year
- 2026
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 96% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Affiliation Fee | $25K | — | |
| Property Improvements | $42K | $326K | |
| Insurance | $3K | $88K | |
| Advertising | $3K | $40K | |
| Brand in a Boxnot refundable | $12K | $30K | |
| Opening Inventory of Supplies | $10K | $67K | |
| Permits, Licenses and Government Fees | — | — | |
| Immersion and Hospitality Training Feesnot refundable | $3K | $5K | |
| Mandatory On-Premise Signs | $20K | $100K | |
| Interior Design Waiver Feenot refundable | $0 | $20K | |
| Revenue Management Setup and Training Feenot refundable | $2K | $2K | |
| Working Capital Required Before Operations Begin | $10K | $25K | |
| Additional Funds for 3-Month Initial Period | $10K | $25K | |
| Total initial investment | $139K | $727K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $109K – $702K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $25K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $400 |
| Training fee | $5K |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $9K – $62K |
| Total fee load | 8.5% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for RODEWAY 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 RODEWAY 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: 2026 FDD
Financial Performance
An occupancy metric, not unit revenue
- Item 19 type
- average occupancy rate, average daily rate and RevPAR
- Sample size
- 388
- vs category median 98 · large
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
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
Total ongoing fee load of 8.5% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports average occupancy rate, average daily rate and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -14.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 22% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 averages
How Rodeway Inn Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 432
- Opened
- 35
- Last reporting year
- Closed
- 50
- Terminated
- 6
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 22.2%
- Net growth (3-yr)
- -14.1%
- Net unit change over 3 years
- 3-yr CAGR
- -14.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 35
- Closed (3yr)
- 42
- Terminated (3yr)
- 6
- Non-renewed (3yr)
- 2
- Transfers (3yr)
- 15
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 22
- Franchisor's next-year forecast
- Transfer rate
- 3.5%
- Owners selling to other franchisees
- Termination rate
- 4.4%
- Franchisor-initiated terminations
- Ceased ops
- 15.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 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.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 339
- Loan volume
- $520.7M
- Median loan
- $1.4M
- 50th percentile
- Charge-off rate
- 4.0%
- 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)
- 96.0%
- 5-yr charge-off
- 3.3%
- Loans approved 2021+
- Active lenders
- 103
- Defaults
- 7
- Typical loan rate
- 5.6%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 792
- 0.7 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Vintage analysis
Rodeway Inn charge-off rate by loan vintage
Top lenders financing Rodeway Inn franchisees
Showing 3 of 103 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.
Premium insight
SBA Lending Report
Deep-dive into Rodeway Inn's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 4.0% — 75% 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
Ten litigation matters but they are franchisor-wide Choice Hotels parent disputes, not Rodeway-specific, and financials are parent-level (net worth $181.2M, revenue $1.6B, net income $370M). No bankruptcy or going-concern; audited with Item 19. Negative net growth -14.1% is a secondary concern; not penalizing parent scale.
Litigation (Item 3)
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees; class not yet certified; anticipated dismissal pending; (2) Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc. - Approximately 90 franchisees alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and state franchise laws; case stayed pending individual arbitration as of March 19, 2021; (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of license agreement, breach of implied covenant of good faith and fair dealing, and misappropriation of guest data under Defend Trade Secrets Act; filed June 26, 2023; motion to dismiss filed November 6, 2023.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures are consolidated for Choice Hotels International, Inc. across all brands, not Rodeway Inn-specific
ⓘ 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: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 01MINOR10 suits but parent-wide (Choice Hotels), not brand-specific
- 02MINORParent-level financials: net worth $181.2M, net income $370M
- 03MINORNegative net growth -14.1%; audited, Item 19
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 98 |
View Item 3 litigation summary
Three pending cases: (1) Norma Knuth v. Radisson Hotels International, Inc. - Class action in Saskatchewan alleging wrongful collection of undisclosed destination marketing fees; class not yet certified; anticipated dismissal pending; (2) Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc. - Approximately 90 franchisees alleging discriminatory, anti-competitive practices and violations of RICO, Sherman Act, Civil Rights Act, and state franchise laws; case stayed pending individual arbitration as of March 19, 2021; (3) T&T Management, Inc. v. Choice Hotels International, Inc. and Country Inn & Suites by Radisson, Inc. - Licensee alleging breach of license agreement, breach of implied covenant of good faith and fair dealing, and misappropriation of guest data under Defend Trade Secrets Act; filed June 26, 2023; motion to dismiss filed November 6, 2023.
Items 10, 11
Training & Operations
- Classroom training
- 47 hrs
- On-the-job training
- 10 hrs
- Training location
- North Bethesda, Maryland
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Site selection
- franchisor
- 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
69 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RODEWAY INN · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RODEWAY INN franchise?
The total investment to open a RODEWAY INN franchise ranges from $109K – $702K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RODEWAY INN franchise owners earn?
No average owner earnings figure for RODEWAY INN is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the RODEWAY 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 RODEWAY INN FDD and qualifies whose outlets they describe.
What is RODEWAY INN's franchise failure rate?
Based on SBA 7(a) loan data, RODEWAY INN has a charge-off rate of 4.0% across 339 loans, meaning 4.0% 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 RODEWAY INN franchise locations are there?
As of their most recent FDD filing, RODEWAY INN has 432 total units in the United States, including 432 franchised units and 0 company-owned units. 35 new units were opened in the latest reporting year.
Is RODEWAY INN a good franchise to buy?
FranchiseVerdict rates RODEWAY INN as a B-grade franchise with a verdict score of 53 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.