Choice Hotels Franchise Costs, Fees & FDD

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Year Business Began: 1963

Franchising Since: 1968

Headquarters: Rockville, Maryland

Estimated Number of Units: 7,500 (locations in 46 countries across all brands)

Franchise 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, Quality Inn, Quality Inn & Suites, Quality Suites, Quality Hotel, Clarion Hotel, Clarion Inn, Clarion Inn & Suites, Clarion Suites, Clarion Resort, Clarion Collection, Clarion Pointe, Sleep Inn, Sleep Inn & Suites, Rodeway Inn, Rodeway Inn & Suites, Econo Lodge, Econo Lodge Inn & Suites, Mainstay Suites, Suburban, Suburban Studios, Ascend Hotel Collection, Woodspring Suites, And Everhome Suites.
Training Overview: Franchisees must comply with the franchisor's training requirements by ensuring that they and the hotel’s general manager(s) attend (at the times required) the then-current training programs, including the annual national convention for hotels authorized to use the system. Attendance at the Choice Onboard Orientation Program is mandatory. Franchisees must have a certified general manager at their hotel. The franchisor will provide its Certified General Manager training under its HOST program. In addition, the franchisor will provide training Sales Certification Program. Franchisees will also participate in the Educational Resources Program, which provides training on various topics through the franchisor's online learning management system. Additional training may be required based on individual hotel needs.

Territory Granted: The franchisor grants franchises for specific sites only. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. However, the franchisor may, depending on local market conditions or other factors such as the franchisee's prior history with the franchisor (if any) and number of hotels franchised by the franchisor, grant exclusive territories in which no other hotel of the same brand will be franchised or operated, for a period of time that the franchisor determines.

Obligations and Restrictions: The franchisor does not require franchisees to personally participate in the direct operation of the franchised hotel nor does it make any recommendation regarding the franchisee's personal participation in the direct operation of the franchise business. However, franchisees must have a certified General Manager at the hotel. Goods or services offered at the hotel must be consistent with high moral and ethical principles. Franchisees must offer accommodations and accompanying goods and services that comply with the franchisor's rules and regulations and applicable local, state, and federal law.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. There is no provision for renewal after the 20 year term expires.

Financial Assistance: In the franchisor's sole discretion, and on approval of the franchisee's credit, it may offer to finance the affiliation fee. The franchisor has also entered into non-exclusive qualified vendor agreements with a number of third party named in the FDD to provide loans to qualified franchisees at the third-party company's discretion.

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

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