Business Description

Accor Hotels is one of the largest owner/operators of economy lodging in the United States. Accor North America is a division of Accor, with 168,000 people in 140 countries, employing approximately 690 people at the corporate offices including the call centers. Approximately 13,000 are employed at Motel 6 and Studio 6 combined.

Franchisor Background

Year Established:  1972

Franchising Since:  1996

Operating Units:
Franchised Units:	100	29.6%
Company-Owned Units:	238	70.4%
Total Operating Units:	338	100.0%
Geographic Distribution: U.S.: 338 100% In 43 States Canada: 0 0% In 0 Canadian Provinces International: 0 0% In 0 Foreign Countries   Total: 338 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Florida	22
2. Ohio	35
3. Texas	21

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements

Investment:
Minimum Net Worth:	$1.5MM
Cash Investment:	$100-500K
Total Investment:	$2.7-3.1MM
Average Total Investment:	$2900K
Fees:
Initial Franchise Fee:	$30K
Average Franchise Fee:	$30K
On-Going Royalty:	4.5%
Average Royalty:	4%
Advertising Fee:	4%

Average Number of Employees: 2-4 Full-time, 4-10 Part-time

Space Needs (in square footage): 15,000+

Preferred Sites: Free-standing Building

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	1
Formal Education:	1
Psychological Profile:	1
Personal Interview(s):	3
Terms of Contract
Term of Initial Contract:	15/20 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	No
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	No
Support and Training
International Franchise Association:	Yes
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Member
Size of Corporate Staff:	690
Site Selection Assistance?	No
Lease Negotiation Assistance?	No
Financial Assistance?	Yes, Direct
Marketing Support:
Co-Op Advertising:	Yes
National Advertising:	No
Regional Advertising:	No
Local Advertising:	No
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	Owner's Orientation, Manager's Orientation
On-Going Support:
Central Data Processing:	Included in Fees
Central Purchasing:	At Additional Cost
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	At Additional Cost
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Included in Fees
Training:
1. Dallas, TX for Owner's Orientatio	2 Days
2. Dallas, TX for Manager Orientation	2 Weeks
Expansion Plans
Projected New Units Over Next 12 months: 15 U.S.: Yes, All United States Canada: Yes, All Canada Overseas: No	Request Franchisor Info   Submit an online form to receive information from Red Roof Inns.