How Much Does a Econo Lodge Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$175K – $955K
Franchise Fee
$30K
Royalty
5.0%
Ad Fund
3.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Econo Lodge is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Econo Lodge franchise requires a total investment of $175K – $955K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $25K to $60K.
Ongoing Costs
Beyond the initial investment, Econo Lodge franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Percentage of Gross Room Revenues). The advertising or brand fund contribution is 3.5% of gross sales.
Net Worth & Liquid Capital Requirements
Econo Lodge requires working capital of $25K – $60K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Econo Lodge does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Econo Lodge?
SBA Loans Issued
121
Default Rate
1.1%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Econo Lodge has 121 SBA-backed loans on record. The default rate is 1.1%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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