Red Lion

Red Lion

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$10M
Total: $10M–$14M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$40K
Per current disclosure
Royalty
5%
of gross revenue
Locations
58
Franchising since 1969

Description

What is Red Lion?

Red Lion Hotels, established in 1959, stands as a distinguished name in the hospitality industry, offering a unique blend of traditional charm and modern comfort. With a strong presence across key markets, Red Lion has built its reputation on delivering authentic, welcoming experiences to both business and leisure travelers.

What sets Red Lion apart is its commitment to maintaining the individual character of each property while ensuring consistent, high-quality service standards across its network. Each location is thoughtfully designed to reflect the local community's culture while providing all the amenities modern travelers expect. The brand particularly excels in creating warm, inviting spaces that make guests feel at home, whether they're staying for a night or an extended period.

The franchise operates with a proven business model that emphasizes both guest satisfaction and operational efficiency. Their comprehensive support system includes robust training programs, sophisticated booking systems, and ongoing operational guidance. Franchisees benefit from Red Lion's established brand recognition and their strong marketing infrastructure, which helps drive consistent occupancy rates.

Red Lion Hotels particularly appeals to entrepreneurs who are passionate about hospitality and community building. The brand's focus on creating memorable guest experiences, combined with their strategic approach to property management, positions franchisees for success in the competitive hospitality market. With decades of experience in the industry, Red Lion continues to evolve and adapt to changing traveler preferences while maintaining its core values of quality, comfort, and genuine hospitality.
  • 65 years of specialized cleaning service expertise since 1959
  • Premium positioning in air duct and chimney cleaning market
  • Established brand recognition in specialized maintenance services
  • Selective franchise growth with 60 operating locations
  • Mature franchise system with proven operational support
  • Comprehensive technical training and equipment systems

Location Analysis

Where Red Lion wins

Red Lion, established in 1959, maintains a strategic presence across multiple states with a significant network of locations, showing particularly strong concentration in the Northeast and Mid-Atlantic regions. The brand has an especially robust presence in Pennsylvania, with notable representation in New Jersey and Ohio, indicating a well-established market presence in these areas. The brand's average rating of 4.32 from numerous customer reviews demonstrates consistent service quality and guest satisfaction in the competitive lodging sector.

The franchise's geographic distribution spans from Hawaii, where it maintains a strategic presence, to its core strength in the Northeast. The strong concentration in Pennsylvania and New Jersey suggests successful market penetration in areas with high business activity and tourist flows. Texas and other Southern states represent significant growth opportunities given their population and business travel volumes.

Ideal locations for new Red Lion properties typically feature proximity to business districts, transportation hubs, or tourist attractions. Markets with strong corporate presence, convention centers, or steady leisure travel show the highest potential. Prospective franchisees should focus on mid-sized cities with limited upscale lodging options, particularly within the brand's established footprint where the operational model has proven successful. The current portfolio shows ongoing optimization efforts to maintain market effectiveness and operational efficiency.
Total US locations
60
Franchise units
58
Corporate locations
2
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Red Lion

Avg gross revenueN/A
Investment range$9,774,660 – $14,212,200
Investment midpoint$11,993,430
Brand fund3%
Royalty5%
Franchise fee$40,000
Min. net worth
Min. liquid capital
Red Lion presents a **specialized service franchise opportunity** in air duct cleaning and chimney sweep services, requiring **$9.8M to $14.2M** in total investment—significantly above the subsector average of $8.4M-$9.3M. This substantial investment range suggests a premium positioning within the cleaning services industry, likely encompassing specialized equipment, vehicle fleets, facility buildouts, and comprehensive training systems. The **65-year operational history since 1959** demonstrates exceptional franchise system stability and brand recognition in the specialized cleaning sector. With **60 operating units** across the network, Red Lion maintains a focused market presence that indicates selective franchisee qualification and territorial protection. The cleaning services industry benefits from **increasing awareness of indoor air quality** and regular maintenance needs, particularly in commercial and residential markets. However, the subsector's **average gross revenue of $1,502** raises questions about revenue reporting methodology or seasonal variations typical in maintenance services. This investment level targets **well-capitalized entrepreneurs** with substantial liquid capital, likely requiring $3-5M in available funds. The premium investment suggests comprehensive operational support, specialized equipment packages, and established customer acquisition systems. Territory exclusivity becomes critical at this investment level, as does ongoing franchisor support for technical training and business development in this specialized service sector.
Did you know? Did you know that launching your own Red Lion hotel franchise requires a substantial total investment ranging from $9.77 million to $14.21 million, which covers everything from the $40,000 franchise fee to property acquisition, construction, furnishing, and operational setup costs needed to bring this established hospitality brand's full-service hotel experience to your market?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$10M–$14M
Most common
$9,774,660
Minimum
$11,993,430
Midpoint
$14,212,200
Maximum

Per FDD Item 7, total initial investment ranges from $9,774,660 to $14,212,200. The midpoint $11,993,430 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

Growth over time

Franchise footprint

+3% YoY
100806040200
2017
2018
2019
2020
2021
2022
2023
2024
60 units open as of 2024 FDD+2 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Red Lion's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Red Lion franchise typically ranges between $9,774,660.00 and $14,212,200.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Red Lion
Red Lion
N/A avg revenue · 58+ US franchises

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