Sleep Inn

Sleep Inn

Information based on 2025 FDD

Lodging & Hospitality · Hotel Resorts

Investment min
$402K
Total: $402K–$9M
Avg gross revenue
N/A
Unit-level, 2025
Franchise fee
$40K–$50K
Per current disclosure
Royalty
7% of Gross Sales
Locations
182
Franchising since 2023

Description

What is Sleep Inn?

Sleep Inn, a distinguished member of the Choice Hotels family, has been redefining affordable comfort in the hospitality industry since 1987. This midscale hotel chain has established itself as a reliable choice for both business and leisure travelers seeking quality accommodations without unnecessary frills.

What sets Sleep Inn apart is their signature 'Simply Stylish' design philosophy, which emphasizes modern, clean aesthetics combined with practical amenities that today's travelers value most. Each property features thoughtfully designed rooms with plush bedding, spa-like bathrooms, and workspace-friendly layouts that cater to diverse guest needs.

As part of the Choice Hotels network, Sleep Inn franchisees benefit from a robust reservation system, award-winning loyalty program (Choice Privileges), and comprehensive operational support. The brand maintains consistent quality standards while allowing franchisees to adapt to local market demands, creating a perfect balance between corporate backing and entrepreneurial freedom.

Sleep Inn's strategic positioning in the midscale segment has proven particularly successful in secondary and tertiary markets, where the brand often becomes the preferred choice for value-conscious travelers. Their streamlined operations model and efficient design help owners maintain healthy margins while delivering consistent guest satisfaction.

With hundreds of locations across North America, Sleep Inn continues to expand its footprint through a careful selection of franchisees who share their commitment to hospitality excellence. The brand's focus on essential comfort, combined with Choice Hotels' extensive support infrastructure, creates an attractive opportunity for entrepreneurs looking to enter the hospitality industry with a proven business model.
  • Lower investment threshold than sub-sector average
  • Established 427-unit franchise system
  • Limited-service hotel operational model
  • Wide investment range accommodating various markets
  • Focus on accessible hospitality franchise opportunity
  • Streamlined hotel operations compared to full-service properties

Location Analysis

Where Sleep Inn wins

Sleep Inn demonstrates a strategic regional presence across multiple states, showing particular strength in the Southeast and Mid-Atlantic regions. The franchise maintains strong concentrations in North Carolina, Virginia, and Texas, forming a robust corridor along major interstate highways and business centers. This distribution suggests a deliberate focus on secondary markets and interstate-adjacent locations where business travelers and cost-conscious tourists intersect.

The brand's consistently positive ratings across locations indicates strong service quality and guest satisfaction, particularly notable in competitive hotel markets. The sample location in Morganton, NC, achieving exceptional guest ratings, exemplifies the potential for success in smaller markets where limited service hotels can capture significant market share.

Key success factors include proximity to business districts, healthcare facilities, and regional airports, with particularly strong performance in areas underserved by upscale hotel chains. The franchise shows expansion potential in the Midwest and Western states, where current presence is more limited. Ideal locations feature visibility from major thoroughfares, proximity to demand generators (corporate parks, medical centers, universities), and demographics indicating a mix of business and leisure travelers.

For prospective franchisees, markets with growing business sectors, stable tourism, and limited mid-scale hotel competition present the strongest opportunities, particularly in secondary cities within the franchise's established southeastern footprint.
Total US locations
427
Franchise units
182
Corporate locations
0
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Sleep Inn

Avg gross revenueN/A
Investment range$402,150 – $9,356,695
Investment midpoint$4,879,423
Brand fund3.5%
Royalty 7% of Gross Sales
Franchise fee$40,000–$49,500
Min. net worth
Min. liquid capital
Sleep Inn requires an investment ranging from $402,150 to $9.36 million, positioning it significantly below the hotel resort sub-sector average of $6.2-$7.7 million. This lower investment threshold makes Sleep Inn more accessible to franchisees compared to full-service hotel competitors. The wide investment range reflects varying property sizes, locations, and development costs including land acquisition, construction, furnishing, and working capital requirements.

The lodging industry benefits from consistent travel demand across business and leisure segments, though it remains sensitive to economic cycles. The 427-unit system indicates established market presence since the franchise's 2022 establishment. However, revenue data is not available for this franchise, limiting comprehensive financial performance analysis. The sub-sector reports average gross revenue of $57,358, though this figure appears inconsistent with typical hotel operations and may reflect data limitations or reporting variations.

Hotel franchises require sophisticated operational management including revenue management, guest services, and regulatory compliance. Multi-unit development opportunities exist for qualified investors with hospitality experience.

Ideal investors possess substantial liquid capital (typically 25-30% of total investment), hospitality experience, and strong operational capabilities. Hotel investments demand active management given 24/7 operational requirements. Prospective franchisees should conduct comprehensive market analysis and review all disclosure documents, noting that revenue performance data is currently unavailable for evaluation.
Did you know? Starting your own Sleep Inn franchise - part of Choice Hotels' popular mid-scale brand known for comfortable, modern accommodations - requires a total investment ranging from $402,150 to $9,356,695 depending on your location and hotel size, which includes the $40,000 to $49,500 franchise fee plus all the startup costs needed to build and launch your hospitality business.

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

$402K–$9M
Most common
$402,150
Minimum
$4,879,423
Midpoint
$9,356,695
Maximum

Per FDD Item 7, total initial investment ranges from $402,150 to $9,356,695. The midpoint $4,879,423 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

+1% YoY
5004003002001000
2017
2018
2019
2020
2021
2022
2023
2024
427 units open as of 2025 FDD+4 in last 12 mo

2025 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Sleep Inn's 2025 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 2025 FDD

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

Buyer FAQs

Frequently asked questions

The initial investment for a Sleep Inn franchise typically ranges between $402,150.00 and $9,356,695.00. 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 2025. 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.

Sleep Inn
Sleep Inn
N/A avg revenue · 182+ US franchises

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