FDD Analysis Report
Sleep Inn
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
Sleep Inn is a modern mid-scale hotel brand from Choice Hotels International, designed for the practical traveler seeking quality accommodations at reasonable prices. With 427 US locations and a focus on new construction, Sleep Inn offers franchisees a consistent brand experience with Choice Hotels comprehensive support.
## Investment Overview
| Investment Component | Amount | |---------------------|--------| | Total Investment Range | 5,923,880 - 8,294,745 | | Alternate Range | 7,322,750 - 9,173,695 | | High Range | 7,430,000 - 9,360,000 | | Initial Franchise Fee | 40,000 - 45,000 | | Royalty Fee | 6 percent of monthly sales | | Marketing Fee | 4 percent of monthly sales | | Liquid Capital Required | 3,000,000 | | Veteran Discount | 10 percent | | Contract Term | 10 years | | Renewal Term | 10 years |
## Financial Performance
Sleep Inn delivers consistent mid-scale performance with new construction consistency across properties, Choice Privileges loyalty member occupancy, competitive ADR in mid-scale segment, and proven brand standards.
## Training and Support
Choice Hotels provides comprehensive support including Initial Training covering operations and brand standards, Pre-Opening Support with systems implementation, Revenue Management with pricing optimization, Marketing Support with national campaigns, Third-Party Financing relationships established, and Choice Privileges Integration connecting to 70 plus million members.
## Network Statistics
Sleep Inn operates a focused US network with 427 US locations, 100 percent franchised with zero corporate-owned, franchising since 1987, Choice Hotels International parent, and new construction focus for consistency.
## Competitive Analysis
Strengths include new construction consistency, Choice Privileges loyalty access, 10 percent veteran discount, comprehensive franchisor support, and modern brand positioning.
Weaknesses include higher investment than conversion brands, 10 percent combined ongoing fees, competitive mid-scale segment, and new construction timeline.
Key Competitors include Comfort Inn as sister Choice brand, Hampton by Hilton with premium positioning, Holiday Inn Express with IHG support, and La Quinta by Wyndham with lower fees.
## Risk Factors
1. Investment Level: New construction requires significant capital 2. Construction Risk: Delays and cost overruns possible 3. Competition: Numerous mid-scale options available 4. Market Entry: Timing to open affects returns 5. Economic Cycles: Mid-scale affected by economic changes
## Investment Recommendation
Target Investor Profile includes new construction developers, mid-scale market investors, and veterans seeking franchise ownership. Sleep Inn is ideal for investors seeking consistent new construction brand, Choice Privileges loyalty access, veteran-friendly ownership, and modern mid-scale positioning.
Suitability Score is 7 out of 10. Sleep Inn offers a quality new construction option in the mid-scale segment with Choice Hotels support and consistency across the brand.
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 Sleep 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 Sleep Inn Franchise
Sleep 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.
Sleep Inn Franchise Cost
The total initial investment required to open a Sleep 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.
Sleep Inn Item 19 Financial Performance
Sleep 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.
Sleep Inn Franchise Growth and System Health
The Sleep 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.
Sleep Inn Franchise Investment Considerations
The Sleep 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 Sleep Inn
Before investing in a Sleep 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 Sleep Inn FDD
Access the complete Sleep 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.