FDD Analysis Report
Econo Lodge
Choice Hotels International, Inc.
Key Metrics At-a-Glance
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of gross sales
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of gross sales
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N/A
Not disclosed
About This Franchise
5 min read## Executive Summary
Econo Lodge is a well-established economy hotel brand under Choice Hotels International, serving budget-conscious travelers with reliable accommodations since 1969. With 643 US locations and attractive conversion economics, Econo Lodge offers franchisees an accessible entry point into hotel ownership.
## Investment Overview
| Investment Component | Amount | |---------------------|--------| | Total Investment Range | 186,000 - 1,050,000 | | Conversion 63-room | 208,275 - 938,645 | | Affiliation Fee New | 250 per room minimum 25,000 | | Affiliation Fee Transfer | 500 per room minimum 30,000 | | Brand Activation Fee | 8,000 - 17,000 | | Royalty Fee | 5 percent of monthly sales | | Marketing Fee | 4 percent of monthly sales | | Liquid Capital Required | 2,000,000 | | Veteran Discount | 15 percent | | Contract Term | 10 years |
## Financial Performance
Econo Lodge serves the economy segment with consistent budget traveler demand, Choice Privileges loyalty integration, competitive ADR in economy segment, and conversion-friendly economics.
## Training and Support
Choice Hotels provides comprehensive support including Initial Training of 96 hours with 49 hours classroom and 47 hours on-the-job, Pre-Opening Support with systems implementation, Revenue Management with pricing tools, Marketing Support with national campaigns, Third-Party Financing options available, and Choice Privileges Integration connecting to 70 plus million members.
## Network Statistics
Econo Lodge operates a significant US network with 643 US locations, 100 percent franchised with zero corporate-owned, franchising since 1990, Choice Hotels International parent since 1963, and focus on conversion properties.
## Competitive Analysis
Strengths include lowest investment threshold in segment, 15 percent veteran discount, Choice Privileges loyalty access, conversion-focused with low barrier to entry, and established brand recognition.
Weaknesses include economy segment margin pressure, 9 percent combined ongoing fees, competition from budget chains, and older property challenges.
Key Competitors include Motel 6 with G6 Hospitality support, Days Inn with Wyndham backing, Red Roof Inn as independent economy brand, and Rodeway Inn as sister Choice brand.
## Risk Factors
1. Economy Segment: Lower rates limit revenue potential 2. Property Condition: Conversion properties may need updates 3. Competition: Numerous budget options available 4. Brand Positioning: Economy perception challenges 5. Economic Sensitivity: Budget travelers very price sensitive
## Investment Recommendation
Target Investor Profile includes first-time hotel investors, veterans seeking accessible entry, and conversion opportunity seekers. Econo Lodge is ideal for investors seeking lowest cost entry into hotel ownership, 15 percent veteran discount, Choice Hotels support, and conversion-friendly economics.
Suitability Score is 6 out of 10. Econo Lodge offers the most accessible entry into hotel ownership with attractive conversion costs and veteran benefits.
Ongoing Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Royalty | See FDD of Gross Revenue | - |
| Brand Fund | See FDD of Gross Revenue | - |
Item 19: Financial Performance Representations
No Financial Performance Representations
This franchisor does not provide Item 19 financial performance representations. Approximately 35% of franchisors choose to disclose this information.
Recommendation: Request financial information directly from existing franchisees listed in Exhibit I during your due diligence. Contact 10-15 franchisees to gather revenue and profitability data before making an investment decision.
Learn more about Item 19 disclosures →Risk Assessment
Items to Review
No notable items identified
Positive Indicators
Review FDD for positive factors
Due Diligence Recommendations
Contact 10-15 existing franchisees to gather operational and financial insights
Franchisee interviews are the most valuable source of information about day-to-day operations and realistic financial expectations.
Have a franchise attorney review the Franchise Agreement
Professional legal review can identify unfavorable terms and potential negotiation points.
Research local market conditions and competition
Understanding your specific market is essential for success, regardless of system-wide performance.
Download Complete FDD
Access the full Franchise Disclosure Document including all 23 items, exhibits, and financial statements.
Learn More About FDDs
New to franchise investing? Our educational guides will help you understand what to look for in the Econo Lodge FDD.
The Ultimate Guide to FDDs
Learn how to read and analyze Franchise Disclosure Documents
Understanding Item 7: Initial Investment
How to evaluate franchise investment costs
FDD Item 5: Initial Fees Explained
What you pay upfront to become a franchisee
Item 20: Franchisee Information
Analyze system growth and contact franchisees
About Econo Lodge Franchise
Econo Lodge is a franchise that offers entrepreneurs the opportunity to own and operate their own business within an established system. As of the 2026 Franchise Disclosure Document, the franchise continues to expand its footprint nationwide. This analysis provides prospective franchisees with key insights from the FDD to support informed investment decisions.
Econo Lodge Franchise Cost
The total initial investment required to open a Econo Lodge franchise ranges from See FDD for details. This investment includes the initial franchise fee of See FDD for details, along with expenses for real estate, equipment, inventory, training, and working capital to sustain operations during the initial period. Ongoing fees include a royalty fee of See FDD of gross sales. Prospective franchisees should review Item 7 of the FDD for a complete breakdown of estimated initial investment costs.
Econo Lodge Item 19 Financial Performance
Econo Lodge does not provide financial performance representations in Item 19 of their FDD. Approximately 35% of franchisors choose to disclose this information. Without franchisor-provided financial data, prospective franchisees should contact existing franchisees directly to gather information about revenue, expenses, and profitability. The franchisee contact list in Exhibit I provides names and contact information for current and former franchise owners.
Econo Lodge Franchise Growth and System Health
The Econo Lodge franchise system has shown stable performance based on unit count data from Item 20 of the FDD. Prospective franchisees should examine the historical data on unit openings, closings, and transfers to understand the system's trajectory and identify any concerning trends.
Econo Lodge Franchise Investment Considerations
The Econo Lodge FDD contains important disclosures that prospective franchisees should carefully review before making an investment decision. Key factors to evaluate include the franchise fee structure, ongoing royalty requirements, territory rights, termination history, and franchisor support systems. Every franchise investment carries risk, and this analysis should be combined with professional legal and financial advice. Review the complete FDD and speak with current franchisees to gain a comprehensive understanding of the opportunity.
Due Diligence Recommendations for Econo Lodge
Before investing in a Econo Lodge franchise, prospective franchisees should:
- Contact multiple existing franchisees to gather operational and financial insights
- Have a franchise attorney review the Franchise Agreement and all exhibits
- Research local market conditions and competitive landscape
- Develop a detailed business plan with realistic financial projections
- Verify all information provided by the franchisor independently
Download the Econo Lodge FDD
Access the complete Econo Lodge Franchise Disclosure Document, including all 23 Items, exhibits, franchise agreement, and audited financial statements. FreeFDDs™ provides free access to FDDs to promote franchise transparency and help prospective franchisees make informed decisions. The FDD contains critical information that should be reviewed in its entirety before making any investment decision.
Disclaimer
This analysis report is provided for informational purposes only. The data presented has been extracted from the Franchise Disclosure Document and may contain errors or omissions.
Prospective franchisees should conduct their own due diligence, review the complete FDD document, and consult with qualified legal and financial advisors before making any investment decisions.