How much does an Econo Lodge franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Choice Hotels' Econo Lodge disclosure document, issued April 1, 2026 and amended May 20, 2026, estimates $194,595 to $1,106,595 to convert a 68-room hotel to an Econo Lodge the owner already holds. The affiliation fee is $350 per room with a $35,000 minimum. The royalty is 5.0 percent and the marketing and reservation fee 3.5 percent of gross room revenues.[1]
Key takeaways
- Affiliation fee: $350 per room for a hotel new to the system, $500 per room for a transfer or renewal, $35,000 minimum either way.[1]
- Royalty: 5.0 percent of gross room revenues. Marketing and reservation fee: 3.5 percent.[1]
- Choice Privileges fee: a flat 5 percent of room revenue from rewards members.[1]
- Term: 20 years with no renewal provision. Either side may terminate on the 5th, 10th or 15th anniversary with 12 months' notice.[1]
- Fees change every year. Choice's current FDD and the signed franchise agreement govern, not this page.
What is different about the Econo Lodge FDD?
Several Econo Lodge charges are lower than the same lines in Choice's Quality FDD of the same date: a 5.0 percent royalty, a $25 per room liquidated damages rate and a $1.00 third-party distribution fee.[1][3]
Choice files one disclosure document per brand on a shared template, so the structure matches its other brands. The numbers that move are these. The royalty is 5.0 percent at Econo Lodge and 5.25 percent at Quality. The per-room rate inside the liquidated damages formula is $25 at Econo Lodge and $70 at Quality. The third-party distribution fee is $1.00 per consumed reservation at Econo Lodge and $4.00 at Quality. The property technology fee is $8.35 per room per month at Econo Lodge and $9.65 at Quality.[1][3]
Two programs that are mandatory at Quality are optional here: the ChoiceMAX pricing software and the ResConnect call program. The Choice Privileges fee is a flat 5 percent at Econo Lodge, where Quality's runs 4.5 to 5.5 percent with enrollment performance.[1][3] Choice says it does not generally offer new construction franchises for Econo Lodge (Item 7, p. 41).[1] This page does not rank the brands. The shared mechanics are explained once on the hotel franchise cost hub.
What does Choice charge up front for an Econo Lodge franchise?
The 2026 Econo Lodge FDD lists an affiliation fee of $350 per room for a hotel new to the system and $500 per room for a transfer or renewal, with a $35,000 minimum in both cases.[1]
A non-refundable $5,000 application fee is credited toward the affiliation fee. If Choice does not grant the franchise, it refunds the affiliation fee less that $5,000. Choice states that affiliation fees on new Econo Lodge agreements in the 12 months ending December 31, 2025 ranged from $1,000 to $25,000, and that it has reduced the fee in certain circumstances without any obligation to do so (Item 5, p. 24).[1]
The first opening inspection is free, and each re-inspection after a failed one is $1,500. The mandatory Brand in a Box program costs about $11,650 to $30,000 and covers the choiceADVANTAGE property management system license, its hardware and other pre-opening items. Required training runs $3,345 to $5,295 per person before travel. An extension of the renovation deadline is $5,000 per three months, and a waiver from the approved interior design schemes is $20,000 (Item 5, pp. 24-26).[1]
What are the ongoing Econo Lodge franchise fees?
Choice's 2026 Item 6 lists a 5.0 percent royalty and a 3.5 percent marketing and reservation fee, both on the preceding month's gross room revenues.[1]
The royalty and liquidated damages are the only fees Choice says are not subject to change (Item 6, pp. 26-27, 38).[1] The Choice Privileges fee is 5 percent of room revenue from rewards members. Choice Accelerate is 3 percent of gross room revenue from stays booked through direct online channels. Third-party distribution is $1.00 per consumed reservation from directly connected online travel agents, and global distribution system reservations are currently $7.70 each (Item 6, pp. 27-29).[1]
The property technology and service fee is $8.35 per room per month, with a $400 minimum and a $700 maximum. ChoiceMAX pricing software is optional at $130 to $180 per month with a $1,500 set-up fee for hotels that take it, and ChoiceROCS revenue management service is optional at $635 to $1,400 per month. The optional ResConnect program is $3.00 per call transferred (Item 6, pp. 30-32, 35).[1] These charges apply to different bases, so they cannot be added into one rate.
How much does it cost to convert a motel to an Econo Lodge?
Choice's 2026 Item 7 estimates $194,595 to $1,106,595 to convert a 68-room hotel, which Choice states as $2,862 to $16,273 per room.[1]
Property improvements are the largest line at $72,100 to $583,700. Choice bases it on a typical property improvement plan and says it excludes deferred maintenance such as the parking lot, HVAC and exterior, and excludes the labor for the improvements. Signs run $20,000 to $100,000 and opening supplies $11,000 to $73,600 (Item 7, pp. 40-41).[1]
The total assumes the hotel is open and operating with its own real estate, furniture, fixtures and equipment and staff. If the furniture, fixtures and equipment do not meet Choice's standards, Choice estimates another $4,500 to $6,000 per room (Item 7, p. 42).[1] Choice issues a customized plan on application. Financing for this work is covered at brand conversion financing and PIP and renovation loans. The plan itself is defined at PIP.
How long is an Econo Lodge franchise agreement, and can I get out early?
The Econo Lodge franchise term is 20 years from the opening date, the FDD lists no renewal provision, and both parties hold termination rights on set anniversaries.[1]
Either the franchisee or Choice may terminate on the 5th, 10th or 15th anniversary of the opening date with at least 12 months' written notice, and the franchisee must keep paying all fees through the end. An owner who takes Choice's incentive program waives the 5th anniversary window unless the incentive note is a five-year note, and Choice waives its own in the same case. For a replacement agreement on an existing Econo Lodge, Choice may offer a term shorter than 20 years (Item 17, pp. 68-69).[1]
If Choice terminates for the franchisee's default after opening, liquidated damages are the greater of $25 per room per month, or the average monthly gross room revenues for the last 12 months times the royalty rate, in each case multiplied by the months until the next penalty-free termination date, capped at 36 months. Before opening, the amount is the room count times 36 months times $25. Continued use of the marks after termination costs $2,500 per day (Item 6, p. 38).[1]
What happens to the Econo Lodge franchise when I sell the motel?
A buyer of a controlling interest signs Choice's then current franchise agreement and pays a relicensing fee equal to the then current affiliation fee.[1]
Item 6 sets the transfer fee for 50 percent or more of the equity at the then current affiliation fee or $35,000, whichever is greater, and Choice's consent is needed for any transfer of more than 5 percent. The buyer also pays a $3,000 property improvement plan fee and $995 for relicensing training. A transfer of less than 50 percent carries a $7,500 assumption fee and a $3,000 change of ownership fee (Item 5, p. 24; Item 6, pp. 32-34; Item 17, p. 70).[1]
A lender comfort letter is $2,500, plus $500 if needed within one to three days (Item 6, p. 33).[1] Choice-flagged hotels on the market are listed at Choice Hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.
What does Choice's Item 19 say about Econo Lodge performance?
Choice's 2026 Item 19 reports that 562 Econo Lodge hotels in its performance sample averaged 46.2 percent occupancy, a $70.43 average daily rate and $32.55 RevPAR in 2025.[1]
There were 599 open Econo Lodge hotels in the United States at December 31, 2025, all franchised. The sample is the 562 that were operating on or before January 1, 2025, excluding hotels that repositioned from another Choice brand during 2025, had at least 30 days of incomplete data, or were interrupted for more than 30 consecutive days. The median RevPAR was $30.64, the range was $6.27 to $100.88, and 245 hotels, or 43.6 percent, met or exceeded the average (Item 19, pp. 72-73).[1]
Choice also reports an average total Choice enterprise contribution of 57.9 percent of gross room revenues and an average Choice Privileges contribution of 33.8 percent. The enterprise figure counts online travel agent bookings made through Choice's negotiated relationships. A second table covers the 215 sample hotels with a guest recommendation score above the brand average, which averaged $37.73 RevPAR. Item 20 shows the franchised count falling from 643 to 599 during 2025 (Item 19, pp. 73-74; Item 20, p. 75).[1]
Choice states that the figures come from information franchisees provided, and that they do not reflect cost of sales or operating expenses that must be deducted to obtain net income or profit (Item 19, p. 75).[1] This page draws no profit conclusion from them. The measures are defined at RevPAR and ADR.
Econo Lodge and Econo Lodge Inn and Suites franchise fees, 2026 FDD issued April 1, 2026, as amended May 20, 2026
| Fee | Amount | Where in the FDD |
|---|---|---|
| Affiliation fee, hotel new to the system | $350 per room, $35,000 minimum; $5,000 application fee credited toward it[1] | Item 5, p. 24 |
| Affiliation fee, transfer or renewal | $500 per room, $35,000 minimum[1] | Item 5, p. 24 |
| Royalty fee | 5.0% of gross room revenues[1] | Item 6, p. 26 |
| Marketing and reservation fee | 3.5% of gross room revenues[1] | Item 6, p. 27 |
| Choice Privileges rewards program fee | 5% of room revenue from rewards members[1] | Item 6, p. 27 |
| Choice Accelerate (direct online bookings) | 3% of gross room revenue from stays booked through direct online channels[1] | Item 6, p. 27 |
| Third-party distribution and GDS | $1.00 per consumed reservation; GDS currently $7.70 per reservation[1] | Item 6, pp. 28-29 |
| Property technology and service fee | $8.35 per room per month, $400 minimum, $700 maximum[1] | Item 6, p. 30 |
| Revenue management (optional) | ChoiceMAX $130 to $180 per month; ChoiceROCS $635 to $1,400 per month[1] | Item 6, p. 31 |
| Re-inspection before opening | $1,500 for each re-inspection after a failed first inspection[1] | Item 5, p. 24 |
| Transfer fee, 50% or more of equity | Then current affiliation fee or $35,000, whichever is greater[1] | Item 6, p. 33 |
| Property improvement plan fee on transfer | $3,000[1] | Item 6, p. 33 |
| Liquidated damages, after opening | Greater of $25 per room per month or average monthly gross room revenues times the royalty, times months to the next termination window, up to 36[1] | Item 6, p. 38 |
| Estimated initial investment, 68-room conversion | $194,595 to $1,106,595; $2,862 to $16,273 per room; assumes the hotel is already owned and operating[1] | Item 7, p. 41 |
Worked example
Hypothetical: a year of Econo Lodge brand fees on assumed room revenue
Hypothetical. Assume a 68-room Econo Lodge earns $800,000 of gross room revenues in a year. The revenue figure and the member share below are assumptions for arithmetic. They are not forecasts and they are not figures from the FDD.
Affiliation fee at signing: 68 rooms x $350 = $23,800, which is under the minimum, so $35,000.[1]
Royalty fee at 5.0 percent: $800,000 x 0.05 = $40,000.[1]
Marketing and reservation fee at 3.5 percent: $800,000 x 0.035 = $28,000.[1]
Together: $68,000, or 8.5 percent of room revenue.
Property technology and service fee: 68 rooms x $8.35 = $567.80 per month, inside the $400 to $700 band, or $6,813.60 for the year.[1]
If $250,000 of that revenue comes from Choice Privileges members, the rewards program fee at 5 percent is $12,500.[1]
On the same assumptions, with 36 months to the next termination window, the revenue side of the liquidated damages formula is $800,000 / 12 x 0.05 x 36 = $120,000. That is more than $25 x 68 rooms x 36 months = $61,200, so $120,000 would apply.[1] Choice Accelerate, per-reservation charges, commissions and training come on top and depend on the hotel's booking channels, so they are not estimated here.
Frequently asked
- How much does an Econo Lodge franchise cost?
- Choice's 2026 FDD lists a $350 per room affiliation fee with a $35,000 minimum, a 5.0 percent royalty and a 3.5 percent marketing and reservation fee. Item 7 estimates $194,595 to $1,106,595 to convert a 68-room hotel the owner already holds.[1]
- What percent of revenue does Choice Hotels take from an Econo Lodge?
- A 5.0 percent royalty plus a 3.5 percent marketing and reservation fee on gross room revenues. The 5 percent Choice Privileges fee, Choice Accelerate, technology and per-reservation charges are billed on other bases on top.[1]
- Can I build a new Econo Lodge?
- Choice says in the 2026 FDD that it does not generally offer new construction franchises for Econo Lodge, and that if it did, construction costs would be higher than the conversion estimate.[1]
- I'm buying an Econo Lodge. What does the relicensing cost?
- For 50 percent or more of the equity, the then current affiliation fee or $35,000, whichever is greater. The transfer rate is $500 per room. Add a $3,000 property improvement plan fee and $995 for relicensing training.[1]
- Can I leave Econo Lodge before the 20 years are up?
- The 2026 FDD gives termination windows on the 5th, 10th and 15th anniversaries of opening, with 12 months' written notice. Choice holds the same rights. Taking an incentive can waive the 5th anniversary window.[1]
- Does the Econo Lodge conversion estimate include new furniture?
- Not in full. The total assumes the hotel's furniture, fixtures and equipment already meet standards. If they do not, Choice estimates another $4,500 to $6,000 per room. Deferred maintenance and labor are also excluded.[1]
- Will these Econo Lodge fees be the same next year?
- Not necessarily. Choice says all fees except the royalty and liquidated damages are subject to change, and it reissues the FDD every year. The current FDD and the signed agreement govern.[1]
Who wrote this
Hospitality Associate, Matthews Hotel Markets
(512) 839-6999nate.solomon@matthews.comLinkedIn
Reviewed by Luke Thompson, VP & Director, Capital Markets.
Sources
- Econo Lodge Franchise Disclosure Document (issued April 1, 2026, as amended May 20, 2026): Item 5, pp. 24-26; Item 6, pp. 26-39; Item 7, pp. 40-42; Item 17, pp. 68-72; Item 19, pp. 72-75; Item 20, p. 75. Minnesota CARDS document 36786-202606-03, file number 3576, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
- Quality Franchise Disclosure Document (issued April 1, 2026, as amended May 20, 2026): Item 6, pp. 27-33, 37, 40. Minnesota CARDS document 36789-202606-03, file number 48, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
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Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.