Business Description

Choice Hotels® is a leading hotel franchisor with over 65 years experience in developing brand concepts and services that are designed to optimize hotel performance. Our single focus is on the return on investment for our owners and growing our brands strategically. Brand concepts include Comfort Inn®, Comfort Suites®, Quality®, Sleep Inn®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, Econo Lodge®, Rodeway Inn® and our new hotel membership program, Ascend Collection®. We offer brands for conversion and new build opportunities. * Source of operating units data - applicable Franchise Disclosure Document dated April 1, 2010: Your fees/terms may fall outside the ranges listed. Please contact Choice Hotels at (800)547.0007 to receive the latest Franchise Disclosure Document for the brands that you are interested in or visit choicehotelsfranchise.com for more details.

Franchisor Background

Year Established:  1941

Franchising Since:  1941

Operating Units:
Franchised Units:	6,032	100%
Company-Owned Units:	3	0%
Total Operating Units:	6,035	100.0%
Minority Representation Units Owned by Minorities: African-American: 31 Asian-American: 2400+ Hispanic: 23 Native American: 6 Other: 0 Specific Minority   Program(s) in place: -Standard Minority Incentive (up to $125,000) -Sleep Inn Brand Minority Incentive (up to $155,000) -Relicensing Minority Incentive (50% discount on affiliation fee) -Choice Hotels African American Owners Alliance & the Choice Hotels Hispanic Owners Alliance - Networking vehicle to assist existing minorities within the Choice Hotels system and help new owners join the system.
Geographic Distribution: U.S.: 4,908 81.3% In 50 States Canada: 280 4.6% In 10 Canadian Provinces International: 847 14% In 31 Foreign Countries   Total: 6,035 99.9.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. California	370
2. Florida	257
3. Texas	395

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:
Minimum Net Worth:	$Varies
Cash Investment:	$20-30% Costs
Total Investment:	$2.3-14.6M
Average Total Investment:	$8450K
Fees:
Initial Franchise Fee:	$10-60K
Average Franchise Fee:	$0K
On-Going Royalty:	4.25-5.65%
Average Royalty:	0%
Advertising Fee:	2.5-3.85%

Average Number of Employees: Varies Full-time, Varies Part-time

Space Needs (in square footage): Varies

Preferred Sites: Free-standing Building

Other Sites: New Construction Sites

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	4
Formal Education:	2
Psychological Profile:	1
Personal Interview(s):	1
Terms of Contract
Term of Initial Contract:	20 Year(s)
Term of Renewal Period:	NA Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	No
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	1556
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Indirect
Marketing Support:
Co-Op Advertising:	Yes
National Advertising:	Yes
Regional Advertising:	Yes
Local Advertising:	Yes
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified
On-Going Support:
Central Data Processing:	Included in Fees
Central Purchasing:	Included in Fees
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Not Applicable
Inventory Control:	Included in Fees
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Included in Fees
Training:
Expansion Plans
Projected New Units Over Next 12 months: U.S.: Yes, All United States Canada: Yes, All Canada Overseas: Yes, All Countries	Request Franchisor Info   Submit an online form to receive information from Choice Hotels International.