Red Roof Introduces Incentives for NextGen Franchisees

Fee Credits, No Royalties and Reduced Marketing and Reservation Fees

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. October 29, 2008

OCTOBER 28, 2008. Fresh and contemporary. Modern and luxurious. Launched in April, Red Roof's NextGen(TM) prototype signaled a brand new direction for one of the country's leading economy lodging brands. Now aggressively marketing to prospective franchise owners, the brand is offering an unprecedented bundle of incentives for investors who are ready to go to the next level in the economy segment. Those who invest in new-build, NextGen prototype construction will be guaranteed thousands of dollars that can be applied to their short and long-term costs. They include, $50,000 credit memo to offset royalty, marketing and reservation fees, 4% marketing and reservation fees, no royalty fees for 7 years from the signing of the agreement and a 2% cap for the remainder of the term.

'The NextGen Incentive program is a home run for prospective investors,' says Joe Wheeling, CEO, Red Roof. 'NextGen is the new frontier for Red Roof, one we strongly believe in and know will be successful for our investors. NextGen combines modern luxury with a budget-conscious price-point and a highly recognizable brand name. It's a win-win for franchisees and their future guests.' The NextGen new build includes incredible bathrooms with vessel sinks and spa-inspired, rain-flow showerheads, a modern d'ecor with wood-look floors and high-design lighting. Flat-screen TVs will allow guests to connect their personal DVD player, MP-3 player or notebook computer for instant, on-screen video/audio access. Welcoming lobbies and lounge areas will feature decorative stone facades and an abundance of natural light.

NextGen new builds are already underway in cities across the U.S. with the first opening scheduled for early 2009 in Locust Grove, GA. Wheeling expects that this incentive package will spur increased interest and commitments from investors. But they must act fast as the offer only applies to the first 50 agreements. 'We wish we could extend this to all prospective investors,' notes Wheeling, 'but this is such a cost-effective program that we must limit it to a select number of franchise owners.' The NextGen brochure and incentive coupon has been mailed to a large group of franchise owners for review. The company expects to have exceptional response to the offer over the next few weeks.