HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn Franchise
Cost, fees, owner earnings, closure rate and litigation for a HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 performance: 27 affiliate-owned, 51 franchised hotels. Affiliate avg DRR $53.31, occupancy 69.8%, RevPAR $37.22, brand contribution 55.0%. Franchised avg DRR $60.59, occupancy 61.6%, RevPAR $37.30, contribution 36.5%. No assurance individual results match.
What a HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $11,734,393 – $14,457,291 | Item 7 — franchisor's own low/high estimate |
5.5% royalty, 3% marketing fee, 2% RediRewards, 0-25% distribution fees. Multiple ancillary fees disclosed.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn system size and owner turnover
| Total outlets | 80 |
| Ceased operations | 6 |
| Terminated by franchisor | 9 |
| Transferred to new owners | 7 |
| Closure rate | 7.5% of outlets |
2025: 4 net outlet decline; 12 affiliate closures; 9 franchisee terminations indicate market stress.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $11,734,393 | pricier than 98% of peers |
| Disclosure honesty | Grade B | more honest than 84% of other franchises franchises |
| Closure rate | 7.5% of outlets | worse than 83% of peers |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn
The franchisor's framing: 2025 performance: 27 affiliate-owned, 51 franchised hotels. Affiliate avg DRR $53.31, occu… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise — frequently asked
- How much does a HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise cost?
- The FDD lists a total initial investment of about $11,734,393–$14,457,291, including a $30,000 initial franchise fee.
- How much do HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise owners make?
- 2025 performance: 27 affiliate-owned, 51 franchised hotels. Affiliate avg DRR $53.31, occupancy 69.8%, RevPAR $37.22, brand contribution 55.0%. Franchised avg DRR $60.59, occupancy 61.6%, RevPAR $37.30, contribution 36.5%. No assurance individual results match. We grade this disclosure B for honesty.
- What are the HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise fees?
- HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn's FDD discloses a $30,000 initial franchise fee, a 5.5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. 5.5% royalty, 3% marketing fee, 2% RediRewards, 0-25% distribution fees. Multiple ancillary fees disclosed.
- What is the HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise profit margin?
- HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 performance: 27 affiliate-owned, 51 franchised hotels. Affiliate avg DRR $53.31, occupancy 69.8%, RevPAR $37.22, brand contribution 55.0%. Franchised avg DRR $60.59, occupancy 61.6%, RevPAR $37.30, contribution 36.5%. No assurance individual results match. Recurring fees alone take about 8.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise failure rate?
- 2025: 4 net outlet decline; 12 affiliate closures; 9 franchisee terminations indicate market stress.
- How many HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn locations are there?
- HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn's FDD reports 80 total outlets, with 6 that ceased operations in the most recent reporting year and 7 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn have complaints or lawsuits?
- HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn franchise worth it?
- It depends on the numbers, not the pitch. HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn scores B on disclosure honesty, carries about 8.5% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with HomeTowne Studios by Red Roof, HomeTowne Inn, Home Town Inn or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.