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Passport Inn

Passport Inn

Franchising since 1977 · 6 locations

The initial franchise fee is $6,000. Passport Inn currently operates 6 locations (6 franchised). PeerSense FPI health score: 34/100.

Franchise Fee

$6,000

Total Units

6

6 franchised

FPI Score
Medium
34

Proprietary PeerSense metric

Limited
Capital Partners
6lenders available

Active capital sources verified for Passport Inn financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Emerging (3-9 loans)

Medium Confidence
34out of 100
Limited

SBA Lending Performance

SBA Default Rate

14.3%

1 of 7 loans charged off

SBA Loans

7

Total Volume

$7.5M

Active Lenders

6

States

3

Top SBA Lenders for Passport Inn

What is the Passport Inn franchise?

The Passport Inn franchise operates within the expansive and highly dynamic Hotels (except Casino Hotels) and Motels category, presenting a distinct and focused opportunity for entrepreneurial individuals seeking entry into the robust hospitality industry. As a brand, the Passport Inn franchise has meticulously established a presence with 5 total units, signifying a deliberate and perhaps cautiously managed expansion strategy across various key geographic regions. This existing portfolio of operational locations strategically positions the Passport Inn franchise as a foundational entity within the broader market, actively providing essential lodging services to a broad spectrum of travelers who prioritize convenience and value. The FPI Score of 34, a critical independent metric provided by PeerSense, serves as a crucial quantitative indicator, offering prospective investors a preliminary, objective assessment of the Passport Inn franchise’s comparative standing in the intensely competitive franchise landscape. This specific numerical score, derived from a comprehensive and multi-faceted evaluation process, encompasses various pertinent aspects of the franchise system, ranging from the efficacy of its support structures to the reported satisfaction levels of its existing franchisees, thereby furnishing a valuable and actionable benchmark for initial due diligence and comparative analysis. The specific market segment targeted by the Passport Inn franchise, which explicitly excludes the specialized and often complex operations of casino-integrated properties, instead focuses intently on capturing the vast and consistent demand for conventional overnight accommodations. This includes diligently serving the diverse needs of business travelers who require convenient access to commercial hubs and corporate centers, leisure tourists who are actively exploring new destinations and cultural sites, and transient guests who seek reliable and comfortable rest stops along major interstate routes and travel corridors. The brand’s strategic market position is inherently shaped by its unwavering commitment to delivering a consistent, high-quality, and satisfactory guest experience across all of its 5 operational units, which is paramount for fostering repeat business, cultivating strong guest loyalty, and generating positive word-of-mouth referrals within its local communities. The core operational philosophy underpinning the Passport Inn franchise is centered on the efficient provision of essential amenities and services that consistently meet or exceed contemporary traveler expectations for comfort, cleanliness, safety, and overall value, thereby building enduring brand loyalty from the ground up within its targeted demographic. The journey of the Passport Inn franchise, from its initial conceptualization to its current operational scale with 5 units, reflects a measured and adaptive approach to growth in a sector that demands both substantial capital investment and exceptionally meticulous operational management, alongside a keen understanding of market dynamics. Each of the 5 Passport Inn franchise locations contributes significantly to the overall brand identity and market recognition, serving as vital and strategic touchpoints in the company's evolving narrative within the highly competitive hospitality sector, striving to enhance its overall brand equity and market penetration. The brand actively seeks to optimize its offering to resonate deeply with contemporary traveler needs and evolving preferences, ensuring its continued relevance and sustained appeal in a rapidly changing industry landscape. This focused approach allows the Passport Inn franchise to maintain operational control and consistency as it plans its future trajectory.

The hospitality industry, where the Passport Inn franchise operates, represents a colossal global market driven by various factors including economic growth, increasing leisure travel, and the ongoing demand for business accommodations. The Hotels (except Casino Hotels) and Motels category is a fundamental pillar of this industry, characterized by its accessibility and widespread necessity. This segment often serves as the entry point for many travelers, offering a range of options from budget-friendly stays to more refined experiences, all without the specific focus on gaming or entertainment complexes associated with casino hotels. The market size for the broader hotel and lodging sector consistently demonstrates substantial annual revenues, with projections indicating steady growth driven by both domestic and international travel trends. For instance, the U.S. hotel industry alone accounts for hundreds of billions of dollars in annual revenue, supporting millions of jobs and contributing significantly to local economies. The demand for lodging fluctuates seasonally and regionally, influenced by major events, holiday periods, and local economic conditions, requiring a keen understanding of market dynamics from operators like the Passport Inn franchise. Emerging trends such as the increasing preference for digital booking platforms, the emphasis on contactless guest experiences, and the rising importance of sustainable practices are continually reshaping the operational landscape for all hotels, including the 5 units of the Passport Inn franchise. Furthermore, advancements in property management systems and revenue optimization technologies are becoming indispensable tools for maximizing occupancy rates and average daily rates (ADR) across the industry. The Passport Inn franchise, with its existing presence, navigates this complex environment by adhering to established service standards and adapting to technological shifts to remain competitive. The segment’s robust nature, characterized by consistent demand for lodging, provides a stable foundation for a Passport Inn franchise, allowing it to cater to an enduring consumer need for temporary accommodation. The competitive landscape within this category is diverse, encompassing both large international chains and smaller independent establishments, all vying for guest loyalty and market share. Understanding these broad industry forces is crucial for evaluating the long-term viability and growth potential of the Passport Inn franchise.

Investing in a Passport Inn franchise involves a comprehensive financial commitment, typical of the capital-intensive nature of the hotel and motel sector. While specific figures for initial franchise fees or royalty rates are not provided in summary, the general structure of hotel franchising dictates various investment components that a prospective franchisee must anticipate. These usually commence with a franchise application fee, followed by an initial franchise fee that grants the rights to use the brand's trademarks, systems, and operational methodologies. Beyond these brand-specific fees, the primary investment for a Passport Inn franchise, as with any hotel, lies in the acquisition or development of real estate. This can involve purchasing land and constructing a new property, or acquiring an existing hotel property and renovating it to meet the brand's standards. Construction costs for a new hotel can range significantly based on location, size, and amenities, often extending into the millions of dollars. For an existing property, renovation costs would similarly vary, but would be crucial for ensuring alignment with the Passport Inn franchise's brand image and guest expectations. Another substantial portion of the investment is allocated to furniture, fixtures, and equipment (FF&E), which includes everything from beds and televisions in guest rooms to lobby furnishings, kitchen equipment, and laundry facilities. This also extends to technology infrastructure, such as property management systems (PMS), point-of-sale (POS) systems, and robust internet connectivity solutions, all essential for modern hotel operations. Furthermore, working capital is a critical initial requirement, covering pre-opening expenses such as initial inventory, staff recruitment and training, utility deposits, and initial marketing efforts before the hotel generates sufficient revenue. Insurance, including property, liability, and workers' compensation, represents another ongoing cost that must be factored into the initial financial planning for a Passport Inn franchise. While specific down payment requirements or financing arrangements for the Passport Inn franchise are not detailed, prospective franchisees typically secure financing through conventional commercial loans, often requiring a significant equity contribution. The total investment range for a hotel franchise like Passport Inn can therefore span from several hundred thousand dollars for a smaller renovation project to multiple millions for new construction, reflecting the scale and scope of the hospitality business. Prospective investors should meticulously review the full Franchise Disclosure Document to obtain precise figures for all fees and estimated investment ranges associated with establishing and operating a Passport Inn franchise.

The operational model for a Passport Inn franchise is fundamentally structured around providing a consistent and high-quality lodging experience across its 5 units, adhering to established brand standards and operational procedures. At its core, the daily operations of a Passport Inn franchise involve comprehensive front-desk management, handling guest check-ins and check-outs, managing reservations, and addressing guest inquiries or concerns around the clock. Housekeeping services are paramount, ensuring that all guest rooms and public areas meet rigorous cleanliness and hygiene standards, which are continuously evolving with industry best practices and guest expectations. Property maintenance is another critical function, encompassing routine repairs, preventative maintenance schedules for mechanical systems, and upkeep of grounds to ensure a safe, functional, and aesthetically pleasing environment for guests. For a Passport Inn franchise, adherence to these operational protocols is key to maintaining guest satisfaction and brand reputation. In terms of support, a franchisor typically provides a multi-faceted framework designed to assist franchisees in successfully launching and operating their businesses. This generally includes initial comprehensive training programs covering all aspects of hotel operations, from reservation systems and customer service protocols to revenue management strategies and local marketing techniques. For the Passport Inn franchise, such training would be instrumental in equipping new franchisees and their staff with the necessary skills and knowledge. Ongoing support often extends to operational guidance, access to a proprietary technology stack including reservation platforms and property management software, and assistance with marketing and branding initiatives at both national and local levels. The FPI Score of 34 for the Passport Inn franchise, as an independent assessment, would implicitly reflect the perceived effectiveness and availability of such support mechanisms from the franchisor. Furthermore, franchisors typically provide detailed operational manuals, brand standards guides, and access to preferred vendor networks for supplies and services, which can offer cost efficiencies and ensure quality consistency across all locations of the Passport Inn franchise. Regular communication channels, including regional meetings, online portals, and dedicated field support personnel, also form integral parts of the ongoing support structure, helping franchisees navigate challenges and capitalize on opportunities within their exclusive territories. The goal of this extensive support system is to empower franchisees of the Passport Inn franchise to operate efficiently and profitably, leveraging the strength of the brand's established systems and market presence.

Evaluating the financial performance of a Passport Inn franchise requires an understanding of general hotel industry metrics, as specific financial performance representations (FPRs) for the Passport Inn franchise are not publicly available in summary. However, profitability in the hotel sector, including for a Passport Inn franchise, is primarily driven by key performance indicators such as occupancy rate, average daily rate (ADR), and revenue per available room (RevPAR). Occupancy rate, representing the percentage of available rooms sold over a period, is directly influenced by market demand, pricing strategies, and the effectiveness of marketing and sales efforts. A higher occupancy rate naturally translates to greater revenue generation. The average daily rate (ADR) reflects the average rental income earned per occupied room per day, indicating the pricing power of the Passport Inn franchise within its specific market. RevPAR, calculated by multiplying occupancy rate by ADR, is often considered the most important metric for gauging a hotel's overall financial health and operational efficiency. Revenue streams for a Passport Inn franchise typically include room rentals as the primary source, potentially supplemented by ancillary services such as vending, laundry facilities, or limited food and beverage offerings, depending on the property's amenities. Cost structures in the hotel industry are diverse and include significant operational expenses such as labor costs for front desk staff, housekeeping, and maintenance personnel, which can represent a substantial portion of total expenditures. Utility costs, including electricity, water, and gas, are also considerable and fluctuate with seasonal demand and energy prices. Property taxes, insurance premiums, maintenance and repair expenses, and marketing contributions to the franchisor are additional recurring costs that impact the net profitability of a Passport Inn franchise. The FPI Score of 34, while not a direct financial indicator, provides an independent assessment that can indirectly reflect aspects influencing financial viability, such as perceived franchisee support and overall system strength. Effective revenue management strategies, including dynamic pricing and channel management, are crucial for optimizing RevPAR and maximizing profitability for each of the 5 Passport Inn franchise locations. Managing expenses diligently without compromising guest experience is also vital. While specific historical earnings or projected revenues for a Passport Inn franchise are not provided, prospective investors would typically seek detailed financial performance representations within the Franchise Disclosure Document

FPI Score

34/100

SBA Default Rate

14.3%

Active Lenders

6

Key Highlights

Data Insights

Key performance metrics for Passport Inn based on SBA lending data

SBA Default Rate

14.3%

1 of 7 loans charged off

SBA Loan Volume

7 loans

Across 6 lenders

Lender Diversity

6 lenders

Avg 1.2 loans per lender

Passport Inn — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2024

1 approvals — best year on record for Passport Inn.

Top SBA State

Texas

6 SBA-financed Passport Inn locations — the densest operator footprint.

Average Loan Size

$1.0M

Median $1.4M — use as a sizing anchor when modeling your own $Passport Inn unit.

Lender Concentration

75%

Concentrated

Share of Passport Inn approvals captured by the top 3 SBA lenders.

Passport Inn's SBA lending pipeline peaked in 2024 (1 approvals). The last five fiscal years account for 14% of cumulative volume ($859K approved). Operator density is highest in Texas with 6 SBA-financed locations. Average funded ticket sits at $1.0M, with the median at $1.4M. Lender mix is concentrated: the top three SBA lenders account for 75% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$400K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$5,176

Principal & Interest only

Locations

Passport Innunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Passport Inn