Scottish Inn, Red Carpet Inn, Master Host Inn Franchise
Cost, fees, owner earnings, closure rate and litigation for a Scottish Inn, Red Carpet Inn, Master Host Inn franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Scottish Inn, Red Carpet Inn, Master Host Inn discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor makes no financial performance representations; declines to authorize projections; directs concerns to management.
What a Scottish Inn, Red Carpet Inn, Master Host Inn franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $10,000 | Item 5 — paid up front, before you open |
| Royalty | 2.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1.875% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 4.375% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $134,195 – $2,611,995 | Item 7 — franchisor's own low/high estimate |
$40/month fixed fee ($25 royalty, $15 marketing); 21% royalties paid to Red Carpet Inns International.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Scottish Inn, Red Carpet Inn, Master Host Inn system size and owner turnover
| Total outlets | 191 |
| Ceased operations | 0 |
| Terminated by franchisor | 13 |
| Transferred to new owners | 4 |
| Closure rate | 0.0% of outlets |
13 terminations, 10 net outlet decline in 2025; 21% decline since 2023.
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 Scottish Inn, Red Carpet Inn, Master Host Inn worth it? — how it compares to 436 similar franchises
| Ongoing fees | 4.375% of sales | lower than most (median 8%) |
| Startup cost | from $134,195 | about average (median $138,750) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 1.5%) |
| Disclosed lawsuits | 6 | more litigious than 86% of peers |
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 Scottish Inn, Red Carpet Inn, Master Host Inn
The franchisor's framing: Franchisor makes no financial performance representations; declines to authorize projectio… 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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Scottish Inn, Red Carpet Inn, Master Host Inn franchise — frequently asked
- How much does a Scottish Inn, Red Carpet Inn, Master Host Inn franchise cost?
- The FDD lists a total initial investment of about $134,195–$2,611,995, including a $10,000 initial franchise fee.
- How much do Scottish Inn, Red Carpet Inn, Master Host Inn franchise owners make?
- Scottish Inn, Red Carpet Inn, Master Host Inn discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Scottish Inn, Red Carpet Inn, Master Host Inn franchise fees?
- Scottish Inn, Red Carpet Inn, Master Host Inn's FDD discloses a $10,000 initial franchise fee, a 2.5% royalty on gross sales, a 1.875% advertising-fund contribution, for roughly 4.375% of gross sales in recurring fees before rent, labor, or debt service. $40/month fixed fee ($25 royalty, $15 marketing); 21% royalties paid to Red Carpet Inns International.
- What is the Scottish Inn, Red Carpet Inn, Master Host Inn franchise profit margin?
- Scottish Inn, Red Carpet Inn, Master Host Inn discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Scottish Inn, Red Carpet Inn, Master Host Inn franchise failure rate?
- 13 terminations, 10 net outlet decline in 2025; 21% decline since 2023.
- How many Scottish Inn, Red Carpet Inn, Master Host Inn locations are there?
- Scottish Inn, Red Carpet Inn, Master Host Inn's FDD reports 191 total outlets, with 0 that ceased operations in the most recent reporting year and 4 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Scottish Inn, Red Carpet Inn, Master Host Inn have complaints or lawsuits?
- Scottish Inn, Red Carpet Inn, Master Host Inn discloses 6 legal matters 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 Scottish Inn, Red Carpet Inn, Master Host Inn franchise worth it?
- It depends on the numbers, not the pitch. Scottish Inn, Red Carpet Inn, Master Host Inn scores F on disclosure honesty, carries about 4.375% of sales in ongoing fees, and discloses 6 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 Scottish Inn, Red Carpet Inn, Master Host Inn or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.