How much does a Rodeway Inn franchise cost?
The 2026 Rodeway Inn Franchise Disclosure Document estimates $108,795 to $702,495 to convert an existing, operating hotel with 57 guestrooms. The range is for a Rodeway Inn Conversion Hotel, not a ground-up build, and it already includes $10,000 to $25,000 of Additional Funds for the first three months after opening. Real estate, real estate taxes, and several property-specific obligations are outside the estimate.
This official range assumes a 57-room hotel that is already operating with real estate, furniture, fixtures and equipment, staff, and existing marketing in place. The 2026 FDD says $31,495 to $81,795 of the total is payable to Choice or its affiliates. Source: 2026 FDD cover and Item 7, pp. 37–39.
Data basis: Choice Hotels International, Inc.; Rodeway Inn Franchise Disclosure Document issued April 1, 2026, as amended May 20, 2026; Rodeway Inn Conversion Hotel based on 57 guestrooms; cost-relevant Items 5, 6, 7, 8, 10, 11, and 17; checked July 14, 2026. A matching public copy of this FDD was not located on an official franchise-controlled domain, so FDD Item and page citations below are intentionally unlinked.
The brand and franchisor can be checked through the official Choice Hotels franchise development website and the official Rodeway Inn brand page. The FTC Franchise Rule explains the federal disclosure framework; it does not validate the franchisor’s estimates.
Capital snapshot
What is included in the initial investment range?
For the 2026 57-room Conversion Hotel estimate, Item 7 includes conversion improvements, insurance, opening advertising, Brand in a Box, opening supplies, training, signs, working capital before opening, and Additional Funds for the first three months. The largest disclosed range is Property Improvements at $42,300 to $326,200, but the condition of the hotel and its customized Property Improvement Plan can push actual costs outside that band.
Bars are scaled to the $326,200 maximum for Property Improvements. Exact labels, not bar length, are controlling.
Interpretation: the disclosed variation is dominated by the hotel’s Property Improvement Plan, signs, insurance, and opening supplies. Source: 2026 FDD, Item 7, p. 37. The chart omits the Affiliation Fee formula and Permits, Licenses and Government Fees because those rows are not expressed as comparable low/high ranges.
Premises, insurance, marketing, and opening supplies
These costs are generally paid to contractors, insurers, media, suppliers, or Qualified Vendors before opening. The payment recipient matters because third-party refund terms can differ from amounts paid to Choice Hotels International, Inc.
| Item 7 category | 2026 range | Timing and payee | FDD page |
|---|---|---|---|
| Property Improvements | $42,300–$326,200 | As incurred before opening; contractor, suppliers, or Qualified Vendor | p. 37 |
| Insurance | $2,500–$87,500 | As incurred before opening; insurance carriers | p. 37 |
| Advertising | $2,500–$40,000 | As incurred before opening; advertising media | p. 37 |
| Opening Inventory of Supplies | $10,000–$67,000 | As incurred before opening; suppliers or Qualified Vendor | pp. 37, 39 |
| Mandatory On-Premise Signs | $20,000–$100,000 | As incurred before opening; Qualified Vendor | p. 37 |
Source for the table: 2026 FDD, Item 7, pp. 37–39.
Systems, training, permits, and operating capital
Item 7 separates cash needed before opening from Additional Funds used after opening. Both are part of the official total, so the $10,000 to $25,000 Additional Funds range should not be added a second time. The row identifies recurring fees, suppliers, employees, and utilities during the three-month initial period; it does not identify owner compensation as an included amount.
| Item 7 category | 2026 range | Timing and payee | FDD page |
|---|---|---|---|
| Brand in a Box | $11,650–$30,000 | Before opening; Choice | pp. 24, 37–38 |
| Permits, Licenses and Government Fees | Varies | As incurred before opening; local jurisdiction or contractor | p. 37 |
| Immersion and Hospitality Training Fees | $3,345–$5,295 | Before opening; Choice | pp. 24, 37, 39 |
| Interior Design Waiver Fee | $0–$20,000 | On request before opening; payable even if waiver is denied | pp. 23, 37 |
| Revenue Management Setup and Training Fee | $1,500 | Before opening; Choice | p. 37 |
| Working Capital Required Before Operations Begin | $10,000–$25,000 | Before opening; suppliers, employees, utilities, consultants | pp. 37, 39 |
| Additional Funds for 3-Month Initial Period | $10,000–$25,000 | After opening; recurring fees and other operating expenses | pp. 37, 39 |
Source for the table: 2026 FDD, Items 5 and 7, pp. 23–24 and 37–39.
Brand in a Box components: Item 7 identifies pre-opening photography at $1,500 to $4,000, required choiceADVANTAGE hardware at $4,900 to $14,000, and the choiceADVANTAGE software license and onboarding at $5,250 to $7,250. The training range combines Choice Onboard at $1,950 and HOST at $1,395, with higher totals possible for additional attendees; travel, lodging, and meals remain separate.
Do not reconstruct the official total by mechanically adding the rows. The Affiliation Fee is presented as a per-room formula with a minimum, the permits row says “Varies,” and the printed line-item endpoints do not cleanly reconcile to the official $108,795 to $702,495 total. The buyer-protective approach is to preserve the stated total and obtain a property-specific written cost schedule.
Why can the actual conversion cost fall outside Item 7?
The 2026 official range is built around an operating 57-room hotel, but the FDD leaves several major property variables unresolved. The customized Property Improvement Plan, deferred maintenance, labor, real estate, and the condition of existing furniture, fixtures and equipment can materially change the amount required.
Customized Property Improvement Plan
The $42,300 to $326,200 range is based on a typical Property Improvement Plan. Choice provides a plan unique to the hotel after application, and local contractor and material costs can move the actual amount outside the range.
Deferred maintenance and labor
The Property Improvements estimate excludes deferred maintenance such as the parking lot, HVAC, and exterior, and it excludes required labor for those improvements. Source: 2026 FDD, Item 7, p. 38.
Real estate is excluded
Purchase or lease cost, real estate taxes, and location-specific property terms are not included. Item 7 says those amounts cannot be estimated with certainty.
New construction is a different cost contract
Rodeway Inn generally does not offer new-construction opportunities. If one is offered, construction, architectural plans, inspections, soil tests, lending and legal fees, market studies, and environmental studies can place the investment above or outside the conversion range.
- Existing FF&E condition: if furniture, fixtures and equipment do not meet standards, the FDD separately estimates $3,500 to $4,500 per room to reach standards.
- Training travel: required Choice Onboard and HOST fees exclude travel, lodging, and meals.
- Shipping and interfaces: Brand in a Box excludes shipping, and additional choiceADVANTAGE interfaces or integrations can increase the disclosed amount.
- Re-licensing circumstance: a change of ownership may add the $995 Re-Licensed Hotel Training fee.
When is the money paid?
Under the 2026 conversion disclosures, the first nonrefundable payment can arise at application, the Affiliation Fee is due by agreement signing, most conversion costs are paid before opening, and Additional Funds support the first three months after opening. Brand in a Box is unusual because Choice may bill the mandatory amount in one lump sum or over 12 monthly invoices without interest.
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Application and initial review
Choice collects a nonrefundable $5,000 Application Fee and credits it toward the Affiliation Fee. If Choice does not grant the franchise or countersign the Franchise Agreement, the Affiliation Fee is refunded less the $5,000 Application Fee. Source: 2026 FDD, Item 5, p. 22.
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Franchise Agreement signing
The conversion Affiliation Fee is $250 per room with a $25,000 minimum. Item 5 says the full amount is due no later than signing and becomes nonrefundable after Choice signs the Franchise Agreement, while Item 7 labels the timing “upon application.” Confirm the invoice date in writing.
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Conversion and pre-opening period
Property Improvements, insurance, advertising, Brand in a Box, Opening Inventory of Supplies, permits, training, Mandatory On-Premise Signs, any Interior Design Waiver Fee, the Revenue Management Setup and Training Fee, and pre-opening Working Capital are due before opening or as incurred.
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Opening and first three months
Item 7 allocates $10,000 to $25,000 of Additional Funds for recurring fees and other operating expenses after opening. Monthly Royalty, Marketing and Reservation, technology, association, and usage-based program charges then begin according to Item 6.
Brand in a Box is mandatory but may not require one immediate cash payment. Item 5 states that the approximately $11,650 to $30,000 amount, excluding shipping, may be paid in a lump sum or billed over 12 months with no interest. That billing option changes timing, not the Item 7 category or the buyer’s total obligation.
Which Rodeway Inn fees continue after opening?
Under the 2026 FDD, the two core monthly system fees are a 5.0% Royalty Fee and a 3.5% Marketing and Reservation Fee, each calculated on the preceding month’s Gross Room Revenues. Because both use the same disclosed base, their combined stated rate is 8.5% of that base. Rewards, distribution, commissions, technology, meetings, and optional services use different bases and must not be folded into that 8.5% figure.
The scale runs from 0% to 10%. The combined bar is a derived calculation from two compatible 2026 FDD rates.
Derived calculation: 5.0% + 3.5% = 8.5% of the preceding month’s Gross Room Revenues. Source rates: 2026 FDD, Item 6, p. 25; Gross Room Revenues definition, p. 36. The 8.5% total excludes every fee with a different transaction, booking, room, attendee, or program basis.
What does Gross Room Revenues mean for these fees?
The FDD defines Gross Room Revenues as revenue from the rental, sale, use, or occupancy of sleeping rooms or meeting rooms, including specified no-show, early-departure, late-checkout, day-use, attrition, cancellation, and business-interruption-insurance proceeds. It excludes legally required taxes and specified non-room revenue such as telephone calls, movie rentals, vending, room service, and food and beverage sales. Source: 2026 FDD, Item 6, p. 36.
Which fixed or room-based charges recur?
Several ongoing charges are fixed, room-based, attendee-based, or annual rather than a percentage of Gross Room Revenues. They remain separate from the Royalty Fee and Marketing and Reservation Fee.
| Recurring fee | Disclosed amount | Basis and timing | FDD page |
|---|---|---|---|
| Property Technology & Service Fee | $8.35/room | Monthly; $400 minimum and $700 maximum | p. 28 |
| CrowdStrike | $35 | Monthly; mandatory security software and services | p. 28 |
| RODEWAY Owners Association Dues | $30 | Monthly | p. 29 |
| Educational Resources Program | $600 | Annual, billed quarterly | p. 30 |
| Annual Convention Registration | $1,700/attendee | Annual, plus travel, lodging, and living expenses; late fee $500 | p. 30 |
| Regional Franchise Meeting | $149 | Annual, plus travel, lodging, and living expenses | p. 30 |
Source for the table: 2026 FDD, Item 6, pp. 28–30.
For the FDD’s 57-room assumption, $8.35 × 57 produces a derived Property Technology & Service Fee of $475.95 per month, which is inside the disclosed $400 minimum and $700 maximum. This arithmetic is not a separate franchisor estimate.
Which booking and program fees vary with use?
These charges depend on the booking channel, loyalty participation, or transaction. They cannot be converted into a reliable annual dollar budget without hotel-specific activity that the FDD does not provide.
- Rewards Program Fee
- 5% of room revenue generated by Choice Privileges rewards-program members; p. 25.
- Choice Accelerate
- 3% of Gross Room Revenues from qualifying consumed direct-online bookings; certain international marketing and meta-advertising stays may be charged up to 10% instead; p. 25.
- Travel Agent Commissions
- Currently 10% to 15% for applicable commissionable reservations, plus a $0.48 processing fee for commissions handled through the centralized program; p. 26.
- Third-Party Distribution
- $1.00 for each consumed reservation through specified directly connected online travel agents and connectivity providers; p. 26.
- Global Distribution System
- Currently $7.70 for each reservation received through an applicable GDS agreement; p. 27.
- Platform Marketing Distribution
- Up to a 15% commission for consumed reservations generated through Choice’s third-party marketing platform; p. 27.
- Airline Frequent Traveler Program
- 5% of room revenue generated by airline frequent travelers; p. 25.
- Global Sales and Government Programs
- 2.7% of room revenue from consumed Global Sales business and 2.25% of room revenue from consumed FedRooms or Department of Defense program stays; p. 27.
- Points and Processing Charges
- Programs processing is $0.12 per eligible transaction when the specified alternative fee is not charged, and several Choice Privileges point reimbursements are approximately $0.005 per point; pp. 26, 31–33.
Source for the definitions: 2026 FDD, Item 6, pp. 25–33.
Optional and participation-based programs
- ChoiceROCS: $635 to $1,400 per month by service tier; optional.
- ChoiceMAX: $130 to $180 per month by room count, plus a $1,500 setup, training, or reinstatement fee when applicable; optional participation.
- ResConnect: $3.00 per transferred call, with an early-exit charge of $500 for each month remaining in the initial term; optional, subject to the FDD’s auto-enrollment provision.
- Marketing Cooperative: $1 per room annually; voluntary and region-dependent.
- AHLA and AAA: $3.30 per room annually for AHLA dues with an opt-out opportunity, and $1,300 to $2,600 annually for qualifying AAA-designated hotels with an annual opt-out.
Source: 2026 FDD, Item 6, pp. 28–33. RevUp and additional consultation services are also disclosed as variable amounts and cannot be quantified from the FDD alone.
Which fees arise only after a specific event or problem?
Transfer, delay, insurance, audit, noncompliance, default, and termination events can create substantial charges that are not part of a routine opening budget. These obligations are relevant because some are fixed, while others depend on room count, remaining contract months, a lender request, or the cost of correcting a problem.
- Construction or renovation extension: $5,000 for each approved additional three-month period; p. 23.
- Interior design waiver: $20,000 at the time of request, payable whether or not Choice grants the waiver; p. 23.
- Transfer of 50% or more: the then-current Affiliation Fee or $15,000, whichever is greater, plus a $3,000 Property Improvement Plan Fee; pp. 30–31.
- Transfer of less than 50%: a $7,500 Assumption Fee or a $3,000 Change of Ownership charge, depending on the transaction described in Item 6; pp. 30–31.
- Comfort Letter for a lender: $2,500, with a $500 expedite fee for a one-to-three-day request; p. 31.
- Failure to maintain required insurance: $500 to $100,000 as an Insurance Reimbursement Fee, with the FDD warning that market rates can fall outside the range; p. 32.
- Audit deficiency: anticipated audit cost of $1,000 to $6,000; a willful deficiency or one exceeding 5% can also require the shortfall, 1.5% interest, and full audit expenses; p. 34.
- Reservation-system reinstatement: $5,000 before reinstatement after suspension caused by default; p. 35.
- Early termination after breach: liquidated damages use a room-count or Gross Room Revenues formula and up to 36 months; Item 6, p. 35. No dollar estimate is stated because the required inputs are property-specific.
Source for the trigger list: 2026 FDD, Items 5 and 6, pp. 23 and 30–35.
Item 5 states a $375-per-room fee, with a $15,000 minimum, for “transfers and renewals,” while Item 17 says there is no renewal provision after the standard 20-year term. A buyer should obtain written clarification on whether a future continuation would be treated as a replacement agreement, re-licensing, transfer, or another transaction, and which then-current fee would apply. Sources: 2026 FDD, Item 5, p. 22; Item 17, p. 65.
Does Rodeway Inn disclose liquid-capital or net-worth requirements?
No explicit dollar minimum for Liquid Capital, Net Worth, or Non-Borrowed Funds was found in the reviewed 2026 FDD. The document refers to Choice’s then-current qualifications, standard credit review, creditworthiness, collateral, and possible Personal Guarantees. Those underwriting concepts are not substitutes for a published cash threshold.
Affiliation Fee Promissory Note
Choice may, in its sole discretion and after credit approval, finance the Affiliation Fee without interest. The note is generally due in one lump sum within three months, can accelerate on default, and can carry an 18% default annual rate. Owners may have to sign personally. Source: Item 10, pp. 43–44.
Selected Capital Support
Choice may provide strategic properties with discretionary capital support funded shortly after opening. The amount depends on creditworthiness and other factors; forgiveness generally occurs over the Franchise Agreement term if no default occurs. Source: Item 10, pp. 44–45.
Ascentium Capital LLC
The FDD describes non-exclusive conventional or lease financing from $5,000 to $500,000, generally for up to 100% of collateral value and for 12 to 72 months. Rates, liens, and Personal Guarantee requirements depend on underwriting. Source: Item 10, pp. 46–47.
PMC Commercial Trust
The FDD describes conventional and SBA financing, generally $500,000 to $5,000,000 and 70% to 85% of collateral value, with terms up to 25 years. The SBA 7(a) loan page explains the federal program generally; it does not confirm approval or the lender-specific terms. Source: Item 10, pp. 47–48.
What incentive can reduce the net capital burden?
The 2026 FDD describes an Incentive Program for qualifying applicants who meet Choice’s standards and broaden access to hotel ownership, including honorably discharged U.S. veterans. For a hotel using the Rodeway marks, the 10-year forgivable note is $1,000 per room, capped at $50,000, and is paid after the Opening Date. A five-year option provides 50% of that amount, capped at $25,000. A qualifying re-licensing transaction may receive a 50% discount on the then-current Affiliation Fee. Eligibility, approval, default terms, and program availability remain discretionary. Source: Item 10, pp. 45–46.
Financing does not change the official Item 7 cost. It changes who supplies cash and when repayment is due. None of the disclosed Choice, Ascentium Capital LLC, PMC Commercial Trust, or Incentive Program arrangements guarantees approval, and several can require collateral, a Personal Guarantee, or repayment after default.
What should be confirmed before setting a Rodeway Inn capital budget?
The most important missing number is the hotel-specific Property Improvement Plan, not a generic midpoint of the FDD range. A complete budget should reconcile the exact room count, existing property condition, pre-opening payments, first-three-month reserves, ongoing fee bases, and any written financing or incentive terms.
The verified starting point is therefore $108,795 to $702,495 for a 57-room conversion, with property improvements as the largest disclosed range driver. The Affiliation Fee, Total Estimated Initial Investment, Additional Funds, and ongoing percentage fees answer different capital questions and should remain separate. The decisive unresolved amount is the property-specific work required to bring the existing hotel, its FF&E, signs, systems, insurance, and supplies into current Rodeway Inn standards.
For a plain-language explanation of how to review disclosure categories and agreements, use the FTC Franchise Rule Compliance Guide. It is a general government guide, not a source for Rodeway Inn financial figures.