Rodeway Growth Takes a Leap

Backed by a franchise fee restructuring, Rodeway Inns had its biggest growth year in 2005, executing 75 franchise contracts. That's more than double the number of deals signed in '04.

More than half of the deals (43) were done after the Choice Hotels brand reduced its initial fee to $5,000 and switched from a revenue percentage royalty to a flat per-room fee. Under the new plan, franchisees pay $25 per room per month for the first two years, followed by annual increases of $1 for the next four years of the contract.

At the end of '05, there were 185 Rodeways open in North America with more than 11,000 rooms. Chain officials say reservations contribution for Rodeway properties rose from 23 percent in 2004 to 27.6 percent last year.

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