FDD Analysis Report
Quality Inn
Choice Hotels International, Inc.
Key Metrics At-a-Glance
See FDD
See FDD
See FDD
of gross sales
See FDD
of gross sales
See FDD
See FDD
N/A
Not disclosed
About This Franchise
5 min read## Executive Summary
Quality Inn is one of the foundational brands of Choice Hotels International, serving travelers seeking dependable mid-scale accommodations at competitive prices. With over 1600 US locations and decades of brand recognition, Quality Inn offers franchisees a proven business model with attractive conversion opportunities.
## Investment Overview
| Investment Component | Amount | |---------------------|--------| | Conversion 75-room | 316,945 - 2,045,895 | | Initial Franchise Fee | 45,000 | | Alternate Fee Range | 25,000 - 50,000 | | Royalty Fee | 5 percent of monthly sales | | Alternate Royalty | 3.5 to 5.25 percent | | Marketing Fee | 4 percent of monthly sales | | Alternate Advertising | 1.25 to 3.5 percent | | Liquid Capital Required | 1,000,000 plus | | Contract Term | 20 years |
## Financial Performance
Quality Inn delivers mid-scale segment performance with consistent occupancy from Choice Privileges members, competitive ADR in mid-scale segment, conversion-friendly economics, and proven operating model.
## Training and Support
Choice Hotels provides comprehensive support including Initial Training of 134 hours with 68 hours classroom and 66 hours on-the-job, Pre-Opening Support with systems implementation, Revenue Management with pricing tools, Marketing Support with national campaigns, and Choice Privileges Integration connecting to 70 plus million loyalty members.
## Network Statistics
Quality Inn operates an extensive US network with 1621 US locations, 100 percent franchised with zero corporate-owned, franchising since 1968, Choice Hotels International parent, and brand variants including Quality Inn Quality Inn and Suites Quality Suites and Quality Hotel.
## Competitive Analysis
Strengths include extensive network footprint, Choice Privileges loyalty access, conversion-focused with lower investment, 5 percent royalty competitive in segment, and established brand since 1968.
Weaknesses include 20-year term with no renewal provision, 9 percent combined ongoing fees, competitive mid-scale segment, and older property challenges.
Key Competitors include Comfort Inn as sister Choice brand, La Quinta by Wyndham with competitive fees, Days Inn in economy segment, and Best Western with zero royalty structure.
## Risk Factors
1. Contract Term: 20-year commitment with no renewal 2. Competition: Numerous mid-scale options available 3. Property Age: Many conversions need updates 4. Segment Pressure: Mid-scale pricing competition 5. Brand Positioning: Quality versus economy perception
## Investment Recommendation
Target Investor Profile includes conversion opportunity seekers, mid-scale market investors, and first-time hotel owners. Quality Inn is ideal for investors seeking established mid-scale brand, low-cost conversion opportunities, Choice Privileges loyalty access, and comprehensive franchisor support.
Suitability Score is 6.5 out of 10. Quality Inn offers accessible entry into hotel ownership through conversions with established brand recognition.
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 Quality Inn 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 Quality Inn Franchise
Quality Inn 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.
Quality Inn Franchise Cost
The total initial investment required to open a Quality Inn 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.
Quality Inn Item 19 Financial Performance
Quality Inn 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.
Quality Inn Franchise Growth and System Health
The Quality Inn 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.
Quality Inn Franchise Investment Considerations
The Quality Inn 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 Quality Inn
Before investing in a Quality Inn 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 Quality Inn FDD
Access the complete Quality Inn 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.