Comfort Inn Franchise Opportunity

Franchise Opportunity: Comfort Inn, Comfort Suites, and Comfort Inn & Suites

Initial Investment and Fees

Application and Affiliation Fee

• New Franchises: $500 per room, minimum $50,000.
• Transfers and Renewals: $750 per room, minimum $65,000.
• Application Fee: $5,000, non-refundable, credited towards affiliation fee.
• Refund Policy: Affiliation fee (less application fee) refundable if franchise not granted or agreement not countersigned​​.

Extension Fee

• Extension Fee: $5,000 for an additional 3 months if construction or renovations delayed​​.

Property Management System

• Cost: Between $8,750 and $15,750 (varies with hotel room number and interfaces selected).
• Monthly Support Fee: Additional, see Item 6 for details​​.

Re-Licensing Training Fee

• Fee: $995 for hotels with 50% or greater change in ownership​​.

Orientation / Hospitality Training

• Onboard Training Fee: $1,850.
• HOST Training Fee: $1,395.
• Additional Attendees: 50% discount (max $875)​​.

Uniformity of Fees

• No financing offered for affiliation, extension, property management system, and training fees​​.

Ongoing Fees

Royalty and System Fees

• Royalty Fee: 6.0% of Gross Room Revenues (GRR).
• System Fee: 3.5% of GRR​​.

Rewards and Distribution Programs

• Rewards Program Fee (Choice Privileges): 4.5% - 5.5% of revenue from program members.
• Airline Frequent Traveler Program Fee: 5% of revenue from airline frequent travelers​​.

Commissions

• Affiliate and Enhanced Reservations Program Commissions: Up to 10% for reservations through Affiliate Program or Choice Hotels Enhanced Reservations Program (CHERP)​​.
• Marketing Processing Fee: $0.48 per transaction for Affiliate FedRooms GSA fees​​.
• Third Party Distribution Fee: $0.12 per transaction for Reward Program or CHERP fees; $3.00 for each consumed reservation through directly connected online travel agents and DerbySoft​​.

Additional Fees

• Travel Agent Commissions: 10% - 12% through Travel Agent Centralized Commission Program​​.
• GDS/DHISCO Fee: $7.70 per reservation through GDS or DHISCO​​.
• Gift Card Redemption Processing Fee: 2.5% of the value of the gift card​​.

Property Management System Support Fee

• Monthly Fee: $423 - $698, varies with room count​​.

Database Clean Up Fee

• Fee: $500 as incurred​​.

Other Fees

• Choice Hotels Owners Council Dues: $60 monthly.
• Meeting and Training Fees: Vary, include convention and additional training programs​​.

Additional Training and Services

• Re-Licensing Hotel Training: $995.
• Room Count Change Fee: Minimum $1,000.
• Extension Fee: $5,000 per 3-month extension.
• Assumption Fee: $7,500.
• Commitment to Your Satisfaction Program: Cost varies.
• Property Improvement Plan Fee: $3,000.
• ChoiceMAX Pricing Optimization System: $45 - $350 based on room count.
• Comfort Letter Fee: $2,500 (plus $500 expedite fee if needed within 1-3 days)​​.

Choice Privileges Programs

• Welcome Recognition Program: $0.005 per Choice Privileges point or cost of the gift.
• Reserved Parking Signs: Approximately $25 per sign.
• ChoiceMAX Revenue Management Program: $415 - $1,595 monthly​​.

Insurance and Taxes

• Insurance Reimbursement Fee: $500 - $100,000.
• Taxes: As assessed by authorities.
• ChoiceMAX Training and Set Up Fee: $1,000 - $2,500.
• Optional Sales Certification Training Program: $500 per attendee.
• SmartMarketing Fee: $15 - $45​​.

Design Services

• Architectural Design Review & Construction Services Fee: Not to exceed $15,000.
• Interior Design Waiver Fee: Not to exceed $15,000​​.

Key Takeaways

• The franchise offers a comprehensive fee structure, covering initial and ongoing expenses.
• A variety of training programs are available, including re-licensing training and sales certification.
• Marketing and reservation programs are well-supported with distinct fees and commissions.
• Property management and support fees depend on room count and services chosen.
• Participation in the Choice Privileges program comes with specific costs and benefits.