Choice Hotels Franchise Cost & Fee

01.02.2019
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Choice Hotels Franchise Cost & Fee

As in many services sector, franchising also widespread in the hotel industry. The most qualified hotels like choice hotels brands sell franchising to reach all over the world. The system is developed approximately 80 years ago and Choice Hotels International was the leading brand. As time passes, new innovations emerged. Most of the high-quality hotels have started to offer different alternatives for different budget.

Choice Hotels Franchise Cost & Fee

Choice Hotels Franchise Cost & Fee

Information About Choice Hotels

The roots of the company back to 1939 with a roadside hotels chain. Choice Hotels with today’s vision and institutionalization is established in 1963 in Maryland and extending with franchising by 1968.

The Company is one of the largest lodging companies in the world with,

  • More than 6,800 hotels,
  • Representing more than 500,000 rooms,
  • Locating in more than 40 countries.

Using the market segmentation strategy, the company serves for a variety of customers. The range changes from full-service hotels to limited services; mid-scale to upscale segments; properties for businesses to leisure travelers.

Moreover, choice hotels franchise support provides franchising opportunities in the US as well as abroad.

How Does The System work?

The franchisor is Choice Hotels International, Inc. The trademarks offered by the Company are:

  • Comfort Inn; Comfort Inn & Suites; Comfort Suites
  • Cambria Suites
  • Quality Inn; Quality Inn & Suites; Quality Suites; Quality Hotel; Quality Resort
  • Clarion Hotel; Clarion Inn, Clarion Inn & Suites; Clarion Resort; Clarion Collection Hotel
  • Sleep Inn; Sleep Inn & Suites;
  • Rodeway Inn; Rodeway Inn & Suites
  • Econo Lodge; Econo Lodge Inn & Suites;
  • Mainstay Suites
  • Suburban Extended Stay Hotels
  • Ascend Collection

The franchisees get right to own and/or operate the hotel under one of the trademarks listed above. The franchise is not required to operate directly in the Hotel. Instead, a General Manager should be hired to control everything.

choice hotels brands

choice hotels brands

The 2018 Franchise Disclosure Document (FDD) including choice hotels franchise agreement is available in hard copy, compact disc, and PDF which can be sent via e-mail. In other words, to get full FDD, you should contact the Company.

The Advantages of Choice Hotels Franchising

There are many advantages to start a hotel operation with being a part of a big Choice Hotels family.

  • Become a part of a worldwide family serving with more than 6,800 hotels.
  • In 2017, with 14,7M rooms booked and $7.02B delivered from reservations.
  • Every year, more than 20M customers book from a brand of the Company.
  • Customer satisfaction is the main element behind the success which makes customers search for Choice Hotels franchisee wherever they go. For instance, The Lowest Price Guarantee Program makes guarantee the lowest price whenever customer reserve from ChoiceHotels.com.
  • Motivation increasing number of guests with raising the standards, advertising campaigns, The Choice Privileges Programs to reward customers.
  • Benefit from the different ways of the central advertising campaigns using TV, e-mail, web, mobile, social media and printed materials.
  • Benefit from industry-leading agreements.

What Should I Do?

  • Choose your market: If you want to operate a hotel as a franchisee of Choice Hotel, first of all, you should choose your market. For instance, if you are willing to serve richer segments you can apply Quality Royale Franchise. Quality Inn, on the other hand, is for the moderately priced for three-star market and Comfort Inn is a new budget franchise for the two-star market.
  • You should contact the Company and demand FDD.
  • In this document, you will find the qualifications as well as financial requirements. You should meet these requirements.
  • If you don’t want to a full-time operation of the hotel, find a qualified General Manager who will be responsible for everything related to business. S/he should also complete all the training required by the Company.
  • Before starting your business, it is better to look for successful Choice Hotels franchisees to get an idea on dos and donts.
  • In each step, one of the most significant guides should be customer reviews. Read and response them.
choice hotels royalty fee

choice hotels royalty fee

Training And Support

The company offers different types of training programs:

  • The Total Lodging by Choice (TLC) Orientation Program: It is a mandatory training for all owners and General Managers of new hotels. If you convert your hotel or transfer it from someone else, you and the general manager of your hotel are also required to complete this program. TLC Orientation takes place 10 times a year. In each time, the training includes 39 hours of class in the center of the Company.
  • Certification program for General Managers: In each hotel, there should be a certified General Manager. The training is offered by the Company under the Hospitality Operations Success Training (HOST). It is mandatory for all owners and General Managers and for all type of franchises. The courses take place four days and 30 hours of classroom and 24 hours of on-the-job training. The cost of the training will not exceed $999 while the General Manager’s travel, accommodation, and meals excluded.
  • ChoiceADVANTAGE: It is mandatory for all General Managers, Assistant General Managers, and front office managers. The training is online and held at your hotel. The program consists of 1016 hours of classroom training and 15-26 hours of on-the-job training.
  • CHESS training: It is optional, recommended to sales professionals and a three-day sales workshop. The main aim is increasing the skills. The program consists of role-playing, personal sakes skill building, and human interaction techniques. The fee of the program is $499 per personal.

Costs and Profits

The cost and profit from starting Choice Hotel Franchise depend on many factors mainly the location and the market segment you prefer.

On average you need $200,000 liquid assets and $750,000 net worth. The investment may change from $1,500,000 to $15,500,000. The franchise fee is $10,000, but changes depending on the brand. The franchise fee may be financed by the Company as a credit with 0% interest rate. You are expected to pay choice hotels royalty fee as a portion of your grand sales.The Company also offers Minority Developer Incentive Programs that encourage to start minorities business with Choice Hotels.

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