ECONO LODGE Franchise Cost and Profit

ECONO LODGE requires a total initial investment of $186K to $1.0M (midpoint approximately $617K), with an initial franchise fee of $30K. The ongoing fee burden is 8.5% (5% royalty plus 3.5% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.

ECONO LODGE does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.

ECONO LODGE operates approximately 677 franchised units. However, the brand has been contracting with a 4.8% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 1.0% is well below the industry average of approximately 7.2%, indicating strong franchisee financial outcomes.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.