Business Description

CHOICE HOTELS is the leading hotel franchisor with more than 60 years' experience in developing brands and services that optimize hotel performance. Our single focus is on enhancing the return on investment for our owners and growing our brands strategically. Brands include COMFORT INN, COMFORT SUITES, QUALITY, SLEEP INN, CLARION, MAINSTAY SUITES, ECONO LODGE, and RODEWAY INN, and our new boutique brand extension, CLARION COLLECTION. Either convert an existing location or build a new one.

Franchisor Background

Year Established:  1941

Franchising Since:  1962

Operating Units:
Franchised Units:	4,810	99.9%
Company-Owned Units:	3	0.1%
Total Operating Units:	4,813	100.0%
Minority Representation Units Owned by Minorities: African-American: 32 Asian-American: 2591 Hispanic: 33 Native American: 6 Other: 0 Specific Minority   Program(s) in place: CHOICE HOTELS is currently offering a special incentive to attract African-American, Native American and Hispanic entrepreneurs to the world of hotel ownership. CHOICE ill provide $1,500 per room up to $125,000 in incentives for a new, converted or relicensed brank hotel or $750 per room up to $50,000 for a similarly franchised economy brand hotel to minority developers holding a 50% ownership stake. Allowance payable upon official opening. CHOICE is committed to diversifying its franchise base.
Geographic Distribution: U.S.: 3,636 75.6% In 50 States Canada: 260 5.4% In 10 Canadian Provinces International: 914 19% In 0 Foreign Countries   Total: 4,810 100.0%

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

Density	Units
1. Texas	258
2. Florida	205
3. California	251

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:	$2.3-12.6M
Average Total Investment:	$7450K
Fees:
Initial Franchise Fee:	$25-50K
Average Franchise Fee:	$38K
On-Going Royalty:	2.75-5.1%
Average Royalty:	4%
Advertising Fee:	1.75% Rev.

Average Number of Employees: Varies Full-time, 0 Part-time

Space Needs (in square footage): 31,000-33,000

Preferred Sites: Free-standing Building

Other 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:	5 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	1500
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	Yes
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	No
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
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: 400+ 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.