Quality Inn
The total investment to open a Quality Inn franchise ranges from $316,945 to $2.0M. The initial franchise fee is $40,000. Ongoing royalties are 5% plus a 7.9% advertising fee.
What is the Quality Inn franchise?
Quality Inn is a midscale hotel brand under Choice Hotels International, Inc. It began in Florida in 1939 as Quality Courts United, a marketing cooperative formed by seven motor court owners. Two years later, it became the first hotel chain in the United States. Stewart Bainum’s Park Consolidated Motels acquired it in 1968, after which it became Quality Courts, Inc. In 1972, it was renamed Quality Inns International, Inc. Quality Inn is headquartered in North Bethesda, Maryland, U.S., and has 870 franchised units in the most recent franchise data. The broader Choice Hotels system includes more than 1,800 hotels worldwide, with reports listing 1,899 locations as of December 31, 2024, and more than 2,000 globally by 2025. Choice Hotels International, Inc. is listed on the New York Stock Exchange as CHH and oversees nearly 7,500 hotels and approximately 630,000 rooms across 46 countries and territories. President and Chief Executive Officer Patrick Pacious leads the company. Quality Inn grew from seven motor courts in 1939 to 100 hotels by 1952 and 1,000 domestic properties in 2010, giving buyers a long operating history to review.
The Hotels except Casino Hotels category represents a multi billion dollar global market supported by leisure travel, business travel, road trips, and demand for overnight accommodation. Midscale hotels often appeal to travelers seeking value during changing economic conditions. Quality Inn’s origins in the motor court concept fit the continued popularity of road travel, while an aging vehicle fleet can increase the need for accessible overnight stays. Rising disposable incomes in emerging markets support international travel, and domestic tourism continues to benefit from demand for experiences. Choice Hotels operates in more than 40 countries and 46 territories, showing the size of the market available to the brand family. Hotel franchises can offer tangible asset ownership, recurring revenue potential, and established brand recognition. The sector includes large brand families such as Choice Hotels International, Inc., with nearly 7,500 hotels, alongside many independent operators. Choice Hotels gives Quality Inn access to marketing, reservation systems, and operating resources. In 2025, the company signed a 70 unit distribution agreement in China expected to generate more than 100 Comfort and Quality hotels. It also signed a 50 unit Quality Suites agreement in France that nearly doubled its footprint from 57 to 107 franchised hotels.
The initial Quality Inn franchise fee is $40,000. Other reported franchise fee figures range from $10,750 to $50,000, with additional figures of $35,000 and $45,000, depending on factors such as property type and market. Total initial investment ranges from $316,945 to $2.05 million. The property format, new construction or conversion, land costs, location, and build out or renovation needs can materially affect the amount required. Some sources cite total investment as high as $10 million, while the $316,945 to $2.05 million range represents the stated franchise data profile. They support brand development, marketing, and Choice Hotels’ reservation systems. The investment requires substantial capital but provides access to Choice Hotels’ nearly 7,500 hotels and approximately 630,000 rooms. The company is led by President and CEO Patrick Pacious. The starting investment of $316,945 can be lower than that of many premium hotel brands, although buyers still need serious financial capacity. The opportunity is generally eligible for Small Business Administration financing for qualified investors.
Quality Inn franchise operations require active property management. Owners must coordinate staff for 24 hour front desk coverage, housekeeping, and property upkeep. Staffing levels depend on local labor conditions and property size. Properties are commonly conversions of existing hotels or new construction, while the brand’s motor court history reflects flexibility across property types and sizes. Choice Hotels provides training covering brand standards, operating procedures, the global reservation system, and revenue management. The Franchise Disclosure Document outlines the training duration and hands on hours. Franchisees also receive access to reservation technology, national marketing funded by the 7.9% advertising fee, property management tools, guest relationship systems, digital marketing platforms, and field consultant guidance. Choice Hotels’ scale can support supply chain cost efficiencies. Hotel franchises generally use a property location agreement rather than a broad geographic territory, so a Quality Inn property does not face direct competition from another Quality Inn in the immediate vicinity. Choice Hotels encourages multi unit ownership. A semi absentee structure may be possible with a capable general manager, but initial setup and sustained performance often require an engaged owner operator.
Choice Hotels International, Inc. is publicly traded on the New York Stock Exchange as CHH and releases reports covering its overall portfolio, which includes Quality Inn. The company oversees nearly 7,500 hotels and approximately 630,000 rooms across 46 countries. Midscale properties supported by recognized brands can produce healthy margins when owners control operations and guest service. Quality Inn has a Strong Loan Activity Score of 69, based on independent research metrics covering the franchise system. Its growth record includes seven motor courts in 1939, 100 hotels by 1952, 1,000 domestic properties in 2010, and 1,600 domestic properties by 2018. The brand recorded 44 openings in 2024 and awarded 57 U.S. agreements in 2025, a double digit increase. International agreements included the 70 unit China distribution deal and the 50 unit Quality Suites agreement in France. A Quality Inn property also opened in Rajkot, India, in 2025. These developments show continued investment by Choice Hotels and its operators, though buyers should assess property level economics independently.
Quality Inn began with seven motor courts in 1939, reached 50 hotels by 1946 and 100 by 1952, and grew its affiliate network to 340 by 1959. The network reached almost 600 locations by 1963, while association membership exceeded 24,000 rooms by 1969. The brand reached 1,000 domestic properties in 2010 and 1,600 in 2018. It recorded 44 openings in 2024 and 57 U.S. agreements in 2025. Choice Hotels signed a 70 unit distribution agreement in China in 2025, projected to generate more than 100 Comfort and Quality hotels over the following four years. In France, a 50 unit Quality Suites agreement increased the company’s footprint from 57 to 107 franchised hotels and added more than 4,800 rooms. A property opened in Rajkot, India, in 2025. Quality Inn benefits from recognition built since 1939 and from Choice Hotels’ nearly 7,500 hotels, marketing resources, reservation systems, and supply chain scale. The brand’s Strong Loan Activity Score of 69 provides another indicator of franchise system performance. Choice Hotels is also investing in reservation technology and guest loyalty programs. Quality Inn serves the midscale segment across 46 countries and territories.
A prospective Quality Inn franchisee should have business judgment and a basic understanding of hospitality operations. Direct hotel experience is not always required because Choice Hotels provides training, but candidates need management ability, staff oversight skills, and the capacity to manage revenue for a substantial asset. The total initial investment of $316,945 to $2.05 million indicates a need for considerable financial capacity and access to capital. Choice Hotels often encourages multi unit ownership, particularly among experienced hospitality operators. Quality Inn operates worldwide, with expansion in the United States and international markets including France, China, India, Poland, and Canada. Properties can operate in urban, suburban, and highway adjacent locations serving business and leisure travelers. The period from signing an agreement to opening commonly ranges from 12 to 24 months, depending on new construction or conversion, permitting, and construction schedules. The franchise agreement term is 20 years. Renewal terms are described in the Franchise Disclosure Document and generally require current brand standards and a renewal fee. Transfers and resales follow the franchise agreement, with franchisor approval and applicable transfer fees required.
Quality Inn is a midscale hotel franchise backed by Choice Hotels International, Inc. Its history extends to 1939, and recent activity includes 44 openings in 2024 and 57 U.S. agreements awarded in 2025. The Strong Loan Activity Score of 69 provides an additional measure of system performance. Choice Hotels’ international activity includes agreements in China and France in 2025 and a property opening in Rajkot, India, in 2025. Franchise support includes a global reservation system, marketing funded by a 7.9% advertising fee, and technology for property and guest management. The $40,000 franchise fee and total investment range of $316,945 to $2.05 million place Quality Inn within a mid tier hotel investment profile. The 20 year agreement offers a long operating period, while the business remains subject to location, occupancy, operating costs, and property condition. PeerSense helps franchise buyers review SBA lending history, the Loan Activity Score, location maps with Google ratings, available FDD financial data, and side by side franchise comparisons. PeerSense introduces buyers to SBA and conventional lenders for financing discussions and does not lend or approve loans.
Loan Activity Score
69/100
SBA Default Rate
5.3%
Active Lenders
288
According to its Franchise Disclosure Document or public business records, Quality Inn has 819 locations, all owned by franchisees. Public SBA loan records show 288 lenders made 1,191 loans to franchisees of Quality Inn. PeerSense calculates Quality Inn's score as 69 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2025 Franchise Disclosure Document.
Franchising since 1939 · 819 locations
$316,945 to $2.0M
$40,000
819
819 franchised
Proprietary PeerSense metric
StrongDistinct lenders in public SBA records for Quality Inn
1,191
Total SBA loans
$2.1M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Quality Inn
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
5.3%
vs 10.3% peer avg
SBA Loans
1,191
Total Volume
$2456.5M
Active Lenders
288
41 selective
States
48
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Quality Inn based on SBA lending data
SBA Default Rate
5.3%
5.0% below peer avg
SBA Loan Volume
1,191 loans
Across 288 lenders
Lender Diversity
288 lenders
Avg 4.1 loans per lender
Investment Tier
Premium investment
$316,945 to $2,045,895 total
Quality 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
2015
87 approvals. The best year on record for Quality Inn.
Top SBA State
Texas
84 SBA financed Quality Inn locations, the densest operator footprint.
Average Loan Size
$2.1M
Median $2.5M. Use as a sizing anchor when modeling your own Quality Inn unit.
Lender Concentration
17.4%
Highly Diversified
Share of Quality Inn approvals captured by the top 3 SBA lenders.
Quality Inn's SBA lending pipeline peaked in 2015 (87 approvals). The last five fiscal years account for 26% of cumulative volume ($833M approved). Operator density is highest in Texas with 84 SBA financed locations. Average funded ticket sits at $2.1M, with the median at $2.5M. Lender mix is highly diversified: the top three SBA lenders account for 17.4% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$3,281
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Quality Inn, unit breakdown
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman