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FranchiseVerdict

How Much Does a Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$134K – $2.6M

Franchise Fee

$10K

Royalty

$25 per room

Ad Fund

$15 per room

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns is $10K. 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 Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise requires a total investment of $134K – $2.6M. 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 $90K to $175K.

Ongoing Costs

Beyond the initial investment, Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchisees pay ongoing fees. The royalty structure is: $25 per room. The ad fund contribution is: $15 per room.

Net Worth & Liquid Capital Requirements

Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns requires working capital of $90K – $175K 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?

Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns 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 Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns?

SBA Loans Issued

29

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns has 29 SBA-backed loans on record. The default rate is 0.0%, 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

Talk to current Scottish Inns, Red Carpet Inn, Master Hosts Inns, Passport Inn, Downtowner Inns franchise owners

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