How much does a Quality Inn franchise cost in 2026?

Choice files one disclosure document per brand on a shared template, so most of the fee table reads the same from brand to brand. The numbers that move are the royalty, the affiliation fee, the technology fee and the liquidated damages rate. In the 2026 filings read for this page, the royalty is 5.25 percent at Quality, 5.5 percent at Sleep Inn and 5.0 percent at Econo Lodge, and the marketing and reservation fee is 3.5 percent at all three.^[1][3][4]

The per-room rate inside the liquidated damages formula is $70 at Quality, $80 at Sleep Inn and $25 at Econo Lodge.^[1][3][4] The Quality Item 7 is built on a 75-room conversion. The Sleep Inn Item 7 is built on an 84-room new building and says Choice cannot estimate a conversion.^[1][3] The shared mechanics are explained once on the hotel franchise cost hub.

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 Quality agreements in the 12 months ending December 31, 2025 ranged from $2,500 to $65,450, and that it has reduced the fee for multi-unit owners, larger properties and owners leaving other chains, without any obligation to do so (Item 5, p. 25).^[1]

The mandatory Brand in a Box program costs about $15,150 to $30,000 and covers the choiceADVANTAGE property management system license, its hardware and other pre-opening items. Choice will bill it over 12 months with no interest. 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, payable whether or not it is granted (Item 5, pp. 25-27).^[1]

Gross room revenues include sleeping rooms, meeting rooms and banquet rooms, guaranteed no-show revenue, early departure and late checkout fees, and business interruption proceeds. Food and beverage sales and taxes are excluded. Choice may raise the marketing and reservation fee for inflation or cost increases if the increase applies to all or most of its U.S. hotels. The royalty and liquidated damages are the only fees Choice says are not subject to change (Item 6, pp. 27-28, 40-41).^[1]

The Choice Privileges fee is 4.5 to 5.5 percent of room revenue from rewards members, varying with the hotel's enrollment performance. Choice Accelerate is 3 percent of gross room revenue from stays booked through direct online channels. Third-party distribution is $4.00 per consumed reservation from directly connected online travel agents, and global distribution system reservations are currently $7.70 each. The mandatory ResConnect program is 3.50 percent of the gross room revenue its team books for the hotel (Item 6, pp. 28-30, 37).^[1]

The property technology and service fee is $9.65 per room per month, with a $625 minimum and a $925 maximum. The ChoiceMAX pricing software is mandatory at $235 to $360 per month with a $2,500 set-up fee. ChoiceROCS revenue management service is optional at $635 to $1,400 per month (Item 6, pp. 31, 33).^[1] These charges apply to different bases, so they cannot be added into one rate.

Property improvement is the largest line at $159,000 to $1,186,000. 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 $27,300 to $153,000. The table excludes the cost of buying or leasing real estate (Item 7, pp. 42-43).^[1]

The total assumes the hotel is open and operating with its own furniture, fixtures and equipment. If those do not meet Choice's standards, Choice estimates another $5,000 to $7,000 per room to bring them up (Item 7, p. 44).^[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.

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 Quality hotel, Choice may offer a term shorter than 20 years (Item 17, p. 72).^[1]

If Choice terminates for the franchisee's default after opening, liquidated damages are the greater of $70 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 $70. Continued use of the marks after termination costs $2,500 per day, and reinstatement to the reservation system after a suspension is $5,000 (Item 6, p. 40).^[1]

Item 6 sets the transfer fee for 50 percent or more of the equity at the then current affiliation fee or $45,000, whichever is greater. The buyer also pays a $3,000 property improvement plan fee for the inspection and the plan that is written into the buyer's agreement, $995 for relicensing training, and a $500 property management system database clean-up fee. A transfer of less than 50 percent carries a $7,500 assumption fee and a $3,000 change of ownership fee (Item 5, p. 25; Item 6, pp. 32, 34-36; Item 17, p. 73).^[1]

The buyer must meet Choice's qualifications for new franchisees, and the hotel must meet the then current brand image and standards (Item 17, p. 73).^[1] A lender comfort letter is $2,500, plus $500 if needed within one to three days (Item 6, p. 35).^[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?.

There were 1,566 open Quality hotels in the United States at December 31, 2025, all franchised. The sample is the 1,498 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 $43.83, the range was $8.32 to $133.99, and 726 hotels, or 48.5 percent, met or exceeded the average (Item 19, pp. 76-77).^[1]

Choice also reports an average total Choice enterprise contribution of 74.2 percent of gross room revenues and an average Choice Privileges contribution of 44.9 percent. The enterprise figure counts online travel agent bookings made through Choice's negotiated relationships. A second table covers the 719 sample hotels with a guest recommendation score above the brand average, which averaged $51.01 RevPAR (Item 19, pp. 77-78).^[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. 78).^[1] This page draws no profit conclusion from them. The measures are defined at RevPAR and ADR.

Guide

How much does a hotel franchise cost?

Other questions in this guide

• How much does a Sleep Inn franchise cost in 2026?
• How much does an Econo Lodge franchise cost in 2026?
• How much does a Comfort Inn or Comfort Suites franchise cost in 2026?
• How do I finance converting my hotel to a new brand?
• How do I finance a hotel PIP or renovation?
• Should I buy a branded or independent hotel?

Terms defined in the glossary

• Franchise Disclosure Document (FDD)
• Hotel Franchise Agreement
• PIP (Property Improvement Plan)
• Franchise Comfort Letter

Our own data

• Matthews Hotel Markets rate sheet