How Much Does a Ramada Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$238K – $24.6M
Franchise Fee
$35K
Royalty
5.0%
Ad Fund
3.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Ramada is $35K. 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 Ramada franchise requires a total investment of $238K – $24.6M. 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 $126K to $1.6M.
Ongoing Costs
Beyond the initial investment, Ramada franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 3.5% of gross sales. There is also a technology fee of $13K.
Net Worth & Liquid Capital Requirements
Ramada requires working capital of $126K – $1.6M 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?
Ramada 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 Ramada?
SBA Loans Issued
633
Default Rate
17.2%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Ramada has 633 SBA-backed loans on record. The default rate is 17.2%, which is near the franchise industry average. 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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