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Red Roof Inns Inc.

A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else. A franchise agreement will usually specify the given territory the franchisee retains exclusive control over the area protection, as well as the extent to which the franchisee will be supported by the franchisor.

Red Roof Inn was incorporated by founder James R. Trueman in 1972. It started franchising in 1996. Its first Inn opened in Columbus, Ohio, with a single room rate of 8.50 dollars in 1973. Today, Red Roof Inn has more than 350 locations and serves millions of guests each year and employs over 6,000 people. Over the last 30 years, the lodging company's commitment to quality growth has contributed to the creation of the Red Roof Inn identity, which represents value, consistency, and excellent service.

They provide special service like economy business lodging service for their good service, some cost or fee structure available like as total investment of 2.6 to 3.4 million dollars, franchise fee of 30 thousand dollars, ongoing royalty fee of 4.5 percent, term of agreement of 20 years which is renewable with a renewal fee of 50 percent of current franchise fee. Due to their excellent service they have achieved rank such as Franchise 500 rank of 253 in 2006, 231 in 2005, 354 in 2004 and 202 in 2003.

Red Roof Inn continues to grow through franchising, acquisitions and new development. With all the continuous hard efforts of all the members of the firm has made it one of the best in the business and has helped them reach to the pinnacle where others can only imagine of reaching. Customer support is one of their primary objective and they strive very hard to fulfill this objective. The market demands quality and they strive to give their customers what they demand.

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