, the budget hotel brand franchised by Choice Hotels International today launched a new fee structure that greatly enhances ease of entry into the Rodeway Inn system - and jumpstarts the brand’s growth potential in the burgeoning budget hotel segment. “With its solid positioning in the budget hotel marketplace and its affiliation with one of the world’s largest lodging franchisors, Rodeway Inn is poised for significant long-term growth,” said Kevin Bradt, senior director, brand strategy for the Choice Hotels economy brands. “This new fee structure gives the brand an edge over its competitors in the segment and makes the ROI potential for Rodeway Inn extremely compelling for current and prospective franchisees.”
Effective immediately, the fee structure for Rodeway Inn is as follows:
—A flat fee of $25 per room, per month is charged to franchisees for the first two years, followed by annual increases of $1.00 over the next four years. This represents a change from the revenue percentage fee structure previously in place for the brand.
—The initial fee to franchise with Rodeway Inn is reduced to $5,000, a significant reduction from previous fee(s) and approximately $1,000 less than some competitors in the segment.
—Mutual windows have been reduced from five years to one year, giving franchisees greater flexibility in their businesses and control over their franchising decisions.
According to Bradt, there is one element of the new business model for Rodeway Inn that does not change. “Rodeway Inn franchisees will continue to enjoy the benefits of affiliation with the marketing, reservations and field support powerhouse that is Choice Hotels International,” he said.