HomeTowne Studios by Red Roof/HomeTowne Inn/HomeTown Inn
Hospitality · Hotels & Extended Stay
- Active units
- 25
- Royalty
- 5.5%
Franchised, year-end 2023
of weekly Net Sales
About HomeTowne Studios by Red Roof/HomeTowne Inn/HomeTown Inn
Detailed brand overview is not available yet for this profile.
Key terms
- Franchise fee
$30k
- Negotiated fee reductions
Fees are subject to negotiation; in 2023 initial franchise fees ranged from $10,000 to $30,000.
- Brand fund
3.0% of Net Sales
- Veteran discount
10000.0% off franchise fee — Development Incentive Program reduces the initial franchise fee by $10,000 for qualified Women-Owned and Veteran-Owned Businesses.
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations53
Franchised units open at year-end
- New openings9
Gross new units opened during the calendar year
- 1-year unit growth rate17.8%
Net unit growth versus prior year
- 3-year unit CAGR45.6%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio9.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$13.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate5.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.