Country Inn & Suites by Radisson Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$808,145 - $17,623,395
Franchise Fee
$7,500
Total US Locations
419
Business Summary
Country Inn & Suites by Radisson offers franchisees the right to construct and operate a hotel under its brand name and primary business trademark. The hotels provide generous hospitality with touches of home, designed to cater to both business and leisure travelers. Franchisees utilize the brand's distinctive identity, trade dress, methods, and system to operate their hotel business, which can involve either new construction or the conversion of an existing property.
Corporate History
Country Inn & Suites by Radisson's parent company, Choice Hotels International, Inc., began its business in 1939 when seven independent motel owners in Florida formed an association to share best practices. In 1941, this group formalized as Quality Courts United, becoming the nation's first hotel chain. The organization evolved into a for-profit corporation, Quality Courts Motels, Inc., in 1963, and subsequently changed its name to Choice Hotels International, Inc. in 1990, and again in 1997. Choice Hotels International, Inc. expanded its system through new hotel brands and market penetration. In 2013, it launched SkyTouch Solutions, LLC, offering cloud-based technology to hoteliers. The Country Inn & Suites by Radisson brand was acquired by Choice Hotels International, Inc. in August 2022 as part of its purchase of Radisson Hospitality, LLC, gaining brand rights in the Americas. The brand itself, through its predecessor Country Inn & Suites by Radisson, Inc., began granting franchises in 1987 under previous names before adopting "Country Inn & Suites by Radisson" in 2017. Choice Hotels International, Inc. started directly offering franchises under the COUNTRY marks in April 2023.
Financial Overview
Investment Range
$808,145 - $17,623,395
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$65,250
Royalty %
6%
Marketing %
3.5%
Equipment Costs (Low)
$626,300
Equipment Costs (High)
$15,805,300
Working Capital
$65,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Choice Hotels International, Inc., the parent company of Country Inn & Suites by Radisson, is financially healthy with audited consolidated financial statements showing net income of $299.665 million in 2024, $258.507 million in 2023, and $332.152 million in 2022. Total revenues reached $1,584.839 million in 2024. The company maintains cash and cash equivalents of $40.177 million as of December 31, 2024. Its independent auditor, Ernst & Young LLP, issued an unqualified opinion, indicating the financial statements are presented fairly. While Choice Hotels International, Inc. has significant long-term debt of $1,768.526 million and reported a total shareholders' (deficit) equity of $(45.271) million at the end of 2024 (meaning liabilities exceeded assets), no "going concern" qualifications or specific concerns about its ability to continue operations were noted by the auditors.
Financing Details
Country Inn & Suites by Radisson, through Choice Hotels International, Inc., offers various financing options. Choice Hotels International, Inc. may, at its sole discretion and based on the franchisee's credit approval, finance the initial affiliation fee without interest. This financing is typically provided via a promissory note, with the full amount due in a lump sum within three months. Additionally, Choice Hotels International, Inc. may offer selected capital support to franchisees developing strategically important properties. This support is documented by a forgivable promissory note, typically amortized over 10 to 20 years, with forgiveness contingent on the franchisee maintaining good standing under the Franchise Agreement. Interest is only applied if a default occurs, at a rate of prime plus two percent. An Incentive Program is also available for qualifying underrepresented entrepreneurs and honorably discharged veterans. This program provides $2,500 per room (up to a maximum of $250,000) through a 10-year forgivable promissory note. A 5-year note, offering 50% of the 10-year incentive (up to $125,000), is an alternative option. Forgiveness for these notes is amortized, and interest accrues only upon default. For franchisees re-licensing an existing Country Inn & Suites by Radisson hotel, a 50% discount on the affiliation fee is offered instead of the Incentive Program. Beyond direct financing, Choice Hotels International, Inc. has non-exclusive agreements with third-party lenders such as PMC Commercial Trust, Balboa Capital Corporation, and Ascentium Capital LLC, who may offer conventional or lease financing. These loans can range from $5,000 to $5,000,000, cover various costs including affiliation fees, construction, and equipment, and typically require collateral and personal guarantees. Choice Hotels International, Inc. receives annual flat payments from these third-party lenders for access to its marketing channels.
Performance Metrics
Total US Locations
419
Franchised Units
416
Corporate Units
3
Franchising Since
1987
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
72
Litigation Summary
Choice Hotels International, Inc., the franchisor for Country Inn & Suites by Radisson, has been involved in several legal matters. Currently, Country Inn & Suites by Radisson has four pending cases. One, filed in 2014, involves allegations of wrongful collection of undisclosed destination marketing fees in Canada, seeking $403 million in damages. Another, filed in 2020 by approximately ninety current and former franchisees, alleges discriminatory and anti-competitive practices, Racketeer Influenced and Corrupt Organizations Act, Sherman Act, Civil Rights Act, and state franchise law violations, as well as breach of contract, fraud, and seeking various damages and injunctive relief; this case is currently stayed pending individual arbitration. A third pending case, filed in 2023, involves a franchisee claiming breach of contract and misuse of guest data, with a motion to dismiss currently awaiting decision. The fourth pending case, filed in 2024, alleges a fraudulent rebate scheme, misuse of system fees, misrepresentation of the system, and breach of contract, with Choice Hotels International, Inc. seeking to compel arbitration. In the past fiscal year (2024), Choice Hotels International, Inc. initiated 64 arbitration or district court actions primarily to recover unpaid royalties, liquidated damages, and other debts from franchisees. Additionally, there were four resolved cases in recent years, including a 2018 breach of contract case settled for $85,000 in 2021, and three arbitrations from 2021 that concluded in 2024, one resulting in a $779,398.40 judgment against Choice Hotels International, Inc. and another where Choice Hotels International, Inc. was awarded $256,051.37 but also had to pay the franchisee over $4.4 million for wrongful termination.
Bankruptcy History
Country Inn & Suites by Radisson has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Country Inn & Suites by Radisson does not provide for renewal after the initial 20-year term expires. Both the franchisee and Choice Hotels International, Inc. have the right to terminate the Franchise Agreement on the 10th and 15th anniversaries of the Opening Date by giving 12 months prior written notice, provided all fees and charges are current.
Training & Support Program
Franchisor Assistance
Country Inn & Suites by Radisson, through Choice Hotels International, Inc., offers extensive assistance to its franchisees. Pre-opening support includes site selection approval, review of preliminary and final architectural drawings to ensure they meet brand standards, and project monitoring by an Onboarding Project Director and Opening Services Manager who help meet contractual milestones, coordinate training, and enroll hotels in marketing programs. Training consists of a mandatory 3-day 'Choice Onboard' program ($1,950) for owners and general managers, covering topics from brand history to e-commerce, held at corporate locations in North Bethesda, Maryland or Scottsdale, Arizona. A 'Hospitality Operations Success Training (HOST)' program ($1,395) is also mandatory for general managers, offered virtually with self-paced lessons, workshops, and exams on hotel operations. Re-licensing training ($995) is required for changes in ownership. Optional sales certification training is available. Post-opening, Choice Hotels International, Inc. provides ongoing quality assurance programs, including periodic hotel visits and guest satisfaction surveys, offering advice on compliance and necessary changes. A national, international, and regional advertising and marketing program, funded by the monthly Marketing and Reservation Fee, promotes the brand and drives reservations through a centralized Reservation System. Franchisees have access to the 'ChoiceConnect' intranet, SmartMarketing tools, and a dedicated Area Director for day-to-day support. The mandatory choiceADVANTAGE® property management and reservation system (with initial software license fees of $8,750-$10,750 and monthly support fees of $519-$855) is provided, requiring specific hardware and interfaces to be refreshed every 48 months. Choice Hotels International, Inc. offers 24/7 remote support, software enhancements, and mandates chip-enabled credit card acceptance hardware and specific EMV software.
Initial Training Hours
47
Training Location
North Bethesda, Maryland or Scottsdale, Arizona (virtual option also available)
Ongoing Support
After opening, Country Inn & Suites by Radisson franchisees receive ongoing quality assurance support through periodic hotel visits and guest satisfaction surveys, with recommendations for corrective actions to maintain standards. The franchise manages extensive national, international, and regional advertising and marketing programs, funded by the monthly Marketing and Reservation Fee, which promote the brand and drive guest reservations through its centralized Reservation System. Franchisees also have ongoing access to the 'ChoiceConnect' intranet, SmartMarketing tools, and a dedicated Area Director who serves as their primary liaison for daily operational questions. The central reservation system is continually developed and maintained. Additionally, franchisees must participate in the Educational Resources Program, costing $1,500 annually, which provides access to online training through Choice University, and can attend optional regional workshops. For technology, 24/7 remote support is provided for the choiceADVANTAGE® software, along with ongoing enhancements and updates.
Franchise Requirements
Ideal Candidate Profile
Country Inn & Suites by Radisson seeks franchisees who meet its current qualifications, which include a standard credit review. For its Incentive Program designed to broaden access to hotel ownership, Country Inn & Suites by Radisson looks for underrepresented entrepreneurs or honorably discharged United States military veterans. These candidates must be majority owners, actively engaged in the deal process, and capable of demonstrating a background that contributes to expanding participation in the franchise system and hospitality industry. While Country Inn & Suites by Radisson does not require franchisees to personally participate in the direct operation of the hotel, it is mandatory to have a certified General Manager on staff.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Territory Size Requirements
Country Inn & Suites by Radisson grants franchises for specific sites only, and franchisees do not receive an exclusive territory. Country Inn & Suites by Radisson reserves the right to grant other franchises or open company-owned hotels under any brand name at any location. While the franchisor may, in its discretion, grant exclusive territories based on local market conditions or other factors, no standard size or geographic requirements are specified for these potential exclusive territories. The general Incremental Impact Policy, which defines territorial radii for other brands, does not apply to Country Inn & Suites by Radisson hotels.
Staffing Notes
Country Inn & Suites by Radisson requires each franchised hotel to have a certified General Manager. At least one hotel staff member in a managerial role must complete the Hospitality Operations Success Training (HOST) program and be present on the hotel premises.