Choice Hotels Franchise Cost & Fees

Date of Incorporation: 1963

Franchising Since: 1968

Headquarters: Silver Spring, Maryland

Business Description: The franchisor is Choice Hotels International, Inc. Choice Hotels does business under the following primary Choice Hotels trademarks among others: Comfort Inn, Comfort Inn & Suites, Comfort Suites, Cambria Suites, Quality Inn, Quality Inn & Suites, Quality Suites, Quality Hotel, Quality Resort, Clarion Hotel, Clarion Inn, Clarion Inn & Suites, Clarion Suites, Clarion Resort, Clarion Collection Hotel, Sleep Inn, Sleep Inn & Suites, Rodeway Inn, Rodeway Inn & Suites, Econo Lodge, Econo Lodge Inn & Suites, Mainstay Suites, Suburban Extended Stay Hotel, And Ascend Collection.

Franchise Offer: The franchisor offers the rights to own and/or operate a hotel business under one of the trademarks and associated marks of a Choice Hotels brand.

Financial Assistance: In Choice Hotels’ sole discretion and on approval of the franchisee’s credit, the affiliation fee may be financed at an interest rate of 0%. Note payment is due in one full lump sum generally within three months after the note is signed. The note may be accelerated upon default and provides for a waiver of presentment, demand for payment, notice of dishonor, protest, and includes a confession of judgment clause. Personal guarantees may be required. The note contains no pre-payment penalty. The franchisor also offers Minority Developer Incentive Programs.

Training and Assistance: Below is a listing of some of the training programs Choice Hotels offers:

• The Total Lodging by Choice (TLC) Orientation Program is mandatory for all owners and General Managers of new hotels, conversions and transfers to new owners and must be completed to Choice Hotels’ satisfaction. TLC Orientation is held 10 times a year at company headquarters in Silver Spring, Maryland. TLC Orientation consists of approximately 39 hours of classroom training.
• Franchisees also must have a certified General Manager at their hotel. Certified General Manager training under the Hospitality Operations Success Training (HOST) will be provided by the franchisor. The training is mandatory for all owners and General Managers of new properties, conversions and transfers to new owners and also must be completed to Choice Hotels’ satisfaction. The cost of the training class will not exceed $999, plus the General Manager's travel, lodging and meals to attend the four day training class. The HOST program consists of approximately 30 hours of classroom training and 2-4 hours of on-the-job training.
• ChoiceADVANTAGE training is mandatory for all General Managers, assistant General Managers and front office managers and must be completed to our satisfaction. The training is held at your hotel preferably in a meeting room with High Speed Internet Access. ChoiceADVANTAGE consists of 10-16 hours of classroom training and 15-26 hours of on-the-job training.
• The CHESS training program is optional and is designed to help sales professionals sharpen their sales skills through interactive role playing, personal sales skill building and human interaction techniques. The training program is a three-day sales workshop. The owner, the General Manager, and any other members of the hotel staff are permitted to attend this training. The fee for CHESS is $499 per attendee.

Obligations and Restrictions: Choice Hotels does not require the franchisee to personally participate in the direct operation of the franchised hotel nor does the franchisor make any recommendation regarding the franchisee’s personal participation in the direct operation of the franchise business. However, the franchisee must have a certified General Manager at the hotel that has satisfactorily completed all required training.

Total Number of Units: Choice Hotels has over 6,100 locations in approximately 40 countries.

Date of FDDs: 2011

The above information has been compiled from the FDDs of Choice Hotels along with online sources.

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