Red Lion is a hotel franchise brand operated by Sonesta RL Hotels Franchising Inc., offering two tiers: Red Lion Inn & Suites and Red Lion Hotel. The brand serves midscale travelers with comfortable, well appointed accommodations for both…
Total Investment
$656K – $39.2M
Franchise Fee
$40,000 (Red Lion Inn & Suites, 125 rooms) or $60,000 minimum / $300 per Guest Room (Red Lion Hotel, 250 rooms minimum $75,000)
Royalty Rate
5% of Gross Rooms Revenue Gross Sales
Total Units
58
Franchising Since
N/A
🌻About Red Lion Franchise
Red Lion is a hotel franchise brand operated by Sonesta RL Hotels Franchising Inc., offering two tiers: Red Lion Inn & Suites and Red Lion Hotel.
The brand serves midscale travelers with comfortable, well appointed accommodations for both business and leisure stays.
The system includes 56 franchised locations and 2 company owned properties, representing a well established footprint in the hospitality industry.
💰Red Lion Franchise Cost & Fees
Minimum Investment
$656K
Average Investment
$19.9M
Maximum Investment
$39.2M
Fee Type
Amount
Notes
Initial Franchise Fee
$40,000 (Red Lion Inn & Suites, 125 rooms) or $60,000 minimum / $300 per Guest Room (Red Lion Hotel, 250 rooms minimum $75,000)
One-time payment upon signing
Royalty Fee
5% of Gross Rooms Revenue of gross sales
Ongoing; paid monthly
Total Investment Range
$655,995 – $39,155,145
Includes build-out, inventory, working capital
The investment range of $656K–$39.2M reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 5% of Gross Rooms Revenue of gross sales.
📊Red Lion Franchise Earnings — Item 19
!
Red Lion does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Red Lion does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
⚖Red Lion Litigation & Risk Flags
✓
Clean Litigation RecordRed Lion has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
📈Red Lion System Growth
Total Units
58
Franchised
56
Company-Owned
2
Red Lion currently operates 56 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
❓Red Lion Franchise — FAQ
The total investment to open a Red Lion franchise ranges from $655,995 to $39,155,145, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000 (Red Lion Inn & Suites, 125 rooms) or $60,000 minimum / $300 per Guest Room (Red Lion Hotel, 250 rooms minimum $75,000). The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Red Lion charges a royalty fee of 5% of Gross Rooms Revenue of gross sales. These fees are paid on an ongoing basis.
You can download the Red Lion Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Red Lion to ensure you have the most up-to-date version.
Red Lion does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Red Lion has been offering franchise opportunities. The FDD shows an investment range of $655,995-$39,155,145, a 5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 (Red Lion Inn & Suites, 125 rooms) or $60,000 minimum / $300 per Guest Room (Red Lion Hotel, 250 rooms minimum $75,000) and the total investment ranges from $655,995 to $39,155,145 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Red Lion and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Red Lion or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com
R
Red Lion
Total Investment
$656K – $39.2M
💰 Costs & Fees
Franchise Fee$40,000 (Red Lion Inn & Suites, 125 rooms) or $60,000 minimum / $300 per Guest Room (Red Lion Hotel, 250 rooms minimum $75,000)
Royalty5% of Gross Rooms Revenue
FinancingNot Available
🏢 System Overview
Total Units58
Earnings Claim (Item 19)No
📄 Contract Terms
⚖️ Legal & Risk
Pending LitigationClean
Bankruptcy HistoryNone
Download the Full Red Lion FDD
2024 · Public Registry Document
Free · No paywall · Instant FDD report
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