Comfort Inn Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$780,645 - $15,869,195
Franchise Fee
$5,000
Min Cash Required
$15,000
Total US Locations
1,663
Business Summary
Choice Hotels International, Inc. franchises hotels under the Comfort Inn, Comfort Suites, and Comfort Inn & Suites brand names. These are limited-service, upper mid-scale hotels designed to offer a warm atmosphere and helpful service. They provide amenities like breakfast, in-room coffee, and high-speed internet access. Comfort Inn typically features a minimum of 60 rooms, Comfort Inn & Suites offers 25-50% suites, and Comfort Suites are all-suite hotels with oversized rooms.
Corporate History
Choice Hotels International, Inc.'s business began in 1939 as Quality Courts United, a membership association formed by seven independent motel owners in Florida. This group formalized into a for-profit corporation named Quality Courts Motels, Inc. in 1963, introducing a training school and central reservations system. The company changed its name to Choice Hotels International, Inc. in 1990 and has since expanded its franchise system by developing additional hotel brands and entering new markets. Choice Hotels International, Inc. has been franchising hotels under the Comfort brand since 1981 and expanded internationally from approximately 1958 through subsidiaries and master franchising. In 2022, Choice Hotels International, Inc. acquired Radisson Hospitality, LLC, adding several Radisson brands to its portfolio.
Financial Overview
Investment Range
$780,645 - $15,869,195
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$65,000
Minimum Cash Required
$15,000
Royalty %
6%
Marketing %
3.5%
Equipment Costs (Low)
$600,000
Equipment Costs (High)
$2,411,000
Working Capital
$27,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Choice Hotels International, Inc. has audited financial statements with an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the financial position and results of operations. However, as of December 31, 2024, Choice Hotels International, Inc. reported a negative total shareholders' equity of $(45,271) thousand, meaning the company's liabilities exceed its assets. The company also has significant long-term debt, totaling $1,768,526 thousand as of the same date. The auditors did not express a going concern qualification.
Financing Details
Choice Hotels International, Inc. offers several direct financing options. The Affiliation Fee Promissory Note allows franchisees to finance the affiliation fee without interest, generally due in one lump sum within three months. Selected Capital Support is available at Choice Hotels International, Inc.'s sole discretion for properties with strategic importance; this is typically a 10 or 20-year forgivable promissory note, funded after the hotel opens, with interest only accruing upon default. An Incentive Program provides $2,500 per room (up to a maximum of $250,000) for qualifying entrepreneurs and veterans, evidenced by a 10-year forgivable promissory note, with a 5-year option at half the amount; again, interest applies only in case of default. Choice Hotels International, Inc. also has non-exclusive Qualified Vendor agreements with third-party lenders such as PMC Commercial Trust, Balboa Capital Corporation, and Ascentium Capital LLC, which may offer conventional and lease financing for various costs, though Choice Hotels International, Inc. does not directly provide these loans but receives annual flat payments from these lenders for marketing access.
Performance Metrics
Total US Locations
1,663
Franchised Units
1,663
Corporate Units
0
Franchising Since
1981
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
90
Litigation Summary
Choice Hotels International, Inc. is involved in 90 disclosed litigation and arbitration cases. Four cases are currently pending: Norma Knuth v. Radisson Hotels International, Inc., et al. (filed 2014) regarding alleged wrongful collection of destination marketing fees in Canada, seeking $403 million; Jai Sai Baba, LLC, et al. v. Choice Hotels International, Inc., et al. (filed 2020) by franchisees alleging discriminatory and anti-competitive practices, breach of contract, and fraud, currently stayed pending arbitration; T&T Management, Inc. v. Choice Hotels International, Inc., et al. (filed 2023) alleging breach of license agreement and guest data misappropriation; and CS Anaheim Hotel Investments, LLC v. Choice Hotels International, Inc. (filed 2024) alleging a fraudulent rebate scheme and breach of contract. Additionally, Choice Hotels International, Inc. initiated 82 new arbitration or federal court actions in 2024 to recover outstanding debts from franchisees. Four cases were resolved in the prior fiscal year (2024): Sender Kohl v. Choice Hotels International, Inc. (2018 arbitration) settled for $85,000; a final judgment of $779,398.40 was entered against Choice Hotels International, Inc. in Highmark Lodging, LLC, et al. v. Choice Hotels International, Inc., et al. (2021 arbitration); in Dahya Investments Incorporated, et al. v. Choice Hotels International, Inc., et al. (2021 arbitration), Choice was to pay $882 while Dahya was to pay Choice $603,483; and in Choice Hotels International, Inc. v. DIP Hospitality, LLC, et al. (2021 arbitration), Choice prevailed on claims for $256,051.37, while DIP Hospitality, LLC prevailed on a wrongful termination claim for $4,411,678.56 and was awarded $430,125.87.
Bankruptcy History
Choice Hotels International, Inc. has no bankruptcy information required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Choice Hotels International, Inc.'s standard franchise agreement for Comfort hotels does not offer a provision for renewal after the initial 20-year term expires. However, for properties that are not newly constructed, both the franchisee and Choice Hotels International, Inc. have a mutual right to terminate the agreement on the 5th, 10th, and 15th anniversaries of the opening date, with 12 months prior written notice, provided all fees are current. If a franchisee participates in the Developer Incentive Program with a 5-year promissory note, they waive their right to terminate without cause on the 5th anniversary. The franchisee has no inherent right or option to renew the agreement or extend its term.
Training & Support Program
Franchisor Assistance
Choice Hotels International, Inc. provides extensive support to its Comfort franchisees, both before and after opening. Before a hotel opens, Choice Hotels International, Inc. offers site selection approval, reviews and comments on architectural designs, and provides opening services support through an Onboarding Project Director. This director assists with project milestones, introduces organizational support, enrolls the hotel in marketing programs, coordinates training, and helps prepare for the initial Quality Assurance Review. Mandatory training programs include a 20-hour 'Choice Onboard' orientation (in-person in Maryland or Arizona) for owners and general managers, and a 27-hour virtual 'Hospitality Operations Success Training (HOST)' for managerial staff. Optional sales training and re-licensing training are also available. For technology, Choice Hotels International, Inc. provides the 'choiceADVANTAGE®' property management system, including software licenses, onboarding, project management, and credit card interfaces, along with ongoing remote support, enhancements, and online training. After opening, Choice Hotels International, Inc. administers quality assurance programs through periodic visits and guest satisfaction surveys, providing advice on compliance and addressing deficiencies. It also operates a national, international, and regional marketing and reservation system, funded by franchisee fees, which includes advertising, promotional programs, and directories. Franchisees can utilize the 'SmartMarketing' program for local advertising materials. Choice Hotels International, Inc. also supports voluntary regional marketing cooperatives and may assemble franchisee advisory councils.
Initial Training Hours
47
Training Location
North Bethesda, Maryland or Scottsdale, Arizona
Ongoing Support
After opening, Choice Hotels International, Inc. provides ongoing support through its Quality Assurance program, which includes periodic visits to hotels and guest satisfaction surveys to evaluate compliance. The franchisor advises on necessary changes and may impose consequences for failure to improve quality. Choice Hotels International, Inc. also maintains a national, international, and regional marketing and reservation system, funded by a monthly Marketing and Reservation Fee. This system handles advertising, promotional programs, publicity, and market research, and provides directories and other distribution channels. Franchisees can also participate in optional regional marketing cooperatives and use the SmartMarketing program for local advertising. Choice Hotels International, Inc. supports franchisee advisory councils. Technically, franchisees receive ongoing remote support, enhancements, and updates for the 'choiceADVANTAGE®' property management software, along with online training resources. Choice Hotels International, Inc. also reviews requests for changes in room count.
Franchise Requirements
Ideal Candidate Profile
Choice Hotels International, Inc. seeks franchisees who meet its current qualifications, including a standard credit review. Ideal candidates are majority owners actively engaged in the deal process. If an individual, they should have characteristics and background that contribute to broadening access to the hospitality industry, or be honorably discharged veterans. They must demonstrate educational, managerial, and business standards, possess good moral character, business reputation, credit rating, and have the experience, aptitude, and ability to operate a hotel, along with adequate financial resources and capital. While prior hospitality and franchising experience is not strictly required before training, the ability to meet managerial and business standards is important for approval.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Choice Hotels International, Inc. grants an Area of Enhanced Protection to each Comfort hotel, provided it remains in good standing. The size of this area is determined by the hotel's market category (e.g., Primary/Airport, Highway, Urban, Resort, Suburban, Small Town Metro) and is expressed in radial miles from the hotel. For instance, a Primary/Airport hotel might have a 1-mile radius of protection, while a Secondary market hotel might have a 5-mile radius, and a Tertiary market hotel a 7-mile radius. Additionally, Choice Hotels International, Inc. has notification areas for same-brand applications outside the enhanced protection area, with radii of 7, 10, or 15 radial miles depending on the applying franchise's market category.
Staffing Notes
Each Comfort hotel location must have a certified General Manager. This General Manager is required to complete the Hospitality Operations Success Training (HOST) program, which consists of self-paced online lessons, live interactive virtual workshops, and exams. The General Manager does not need to hold an ownership interest in the hotel to operate the business. Additionally, at least one other hotel staff member in a managerial role must be present on the hotel premises and be HOST certified. The franchisee is entirely responsible for training all other employees in the day-to-day operation of the Comfort hotel.