Red Carpet Inn
The total investment to open a Red Carpet Inn franchise ranges from $653,100 to $2.1M. The initial franchise fee is $60,000. Ongoing royalties are 12% plus a 2% advertising fee.
What is the Red Carpet Inn franchise?
Red Carpet Inn is a hotel and motel business that provides overnight lodging to travelers. The 2026 Franchise Disclosure Document lists an estimated total initial investment of $653,100 to $2,120,000 and an initial franchise fee of $60,000.
The royalty is 12 percent of sales, and the advertising or brand fund fee is 2 percent. The franchise agreement runs for 10 years.
Red Carpet Inn was founded in 1969 and is headquartered in FL.
Loan Activity Score
49/100
SBA Default Rate
6.5%
Active Lenders
46
According to its Franchise Disclosure Document or public business records, Red Carpet Inn has 50 locations, all owned by franchisees. Public SBA loan records show 46 lenders made 62 loans to franchisees of Red Carpet Inn. PeerSense calculates Red Carpet Inn's score as 49 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2026 Franchise Disclosure Document.
Franchising since 1969 · 50 locations
$653,100 to $2.1M
$60,000
50
50 franchised
Proprietary PeerSense metric
FairDistinct lenders in public SBA records for Red Carpet Inn
62
Total SBA loans
$1.2M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Red Carpet Inn
Loan Activity Score Breakdown
Established (25 to 99 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
6.5%
vs 10.3% peer avg
SBA Loans
62
Total Volume
$72.4M
Active Lenders
46
3 selective
States
15
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 Red Carpet Inn based on SBA lending data
SBA Default Rate
6.5%
3.8% below peer avg
SBA Loan Volume
62 loans
Across 46 lenders
Lender Diversity
46 lenders
Avg 1.3 loans per lender
Investment Tier
Premium investment
$653,100 to $2,120,000 total
Red Carpet 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
2017
4 approvals. The best year on record for Red Carpet Inn.
Top SBA State
Florida
10 SBA financed Red Carpet Inn locations, the densest operator footprint.
Average Loan Size
$1.2M
Median $1.1M. Use as a sizing anchor when modeling your own Red Carpet Inn unit.
Lender Concentration
30.6%
Moderately Spread
Share of Red Carpet Inn approvals captured by the top 3 SBA lenders.
Red Carpet Inn's SBA lending pipeline peaked in 2017 (4 approvals). The last five fiscal years account for 6% of cumulative volume ($6.0M approved). Operator density is highest in Florida with 10 SBA financed locations. Average funded ticket sits at $1.2M, with the median at $1.1M. Lender mix is moderately spread: the top three SBA lenders account for 30.6% of approvals. Meaningful choice exists, but specific lenders carry the brand.
Payment Estimator
Estimated Monthly Payment
$6,761
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
Red Carpet 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