About Signature Inn Franchise
Signature Inn is an economy hotel franchise operated under the Sonesta RL Hotels Franchising Inc.
system.
Franchisees operate Signature Inn-branded hotels that offer a unique lodging experience combining fun, retro mid-century styling with modern features and creative design elements at an affordable price.
Signature Inn Franchise Cost & Fees
Minimum Investment
$236K
Average Investment
$3.3M
Maximum Investment
$6.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $20,000 | One-time payment upon signing |
| Royalty Fee | $50 per Guest Room per month, minimum $2,000 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | No separate advertising fee; marketing included in Brand Fee | National brand fund |
| Total Investment Range | $236,445 – $6,320,445 | Includes build-out, inventory, working capital |
The investment range of $236K–$6.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($50 per Guest Room per month, minimum $2,000 per month) and marketing fee (No separate advertising fee; marketing included in Brand Fee) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $20,000 | $20,000 |
| Onboarding Administration Fee | $1,000 | $1,000 |
| PIP Fee | $0 | $1,000 |
| Market Study | $0 | $7,500 |
| Real Estate, Legal and Title Expenses | $0 | $0 |
| Permits, Licenses, Plans, Etc. | $135,000 | $290,000 |
| Construction Costs | $2,250,000 | $4,800,000 |
| Furniture, Fixtures and Equipment (FF&E) | $141,000 | $760,000 |
| Exterior Signage | $5,000 | $40,000 |
| Communications Equipment | $8,000 | $50,000 |
| Computer System | $2,000 | $25,000 |
| PMS Interface and Tokenization Set Up Fee | $445 | $445 |
| Inventory/Supplies (OS&E) to Begin Operating | $18,000 | $115,000 |
| Other Pre-Opening and Grand Opening Expenses | $10,000 | $75,000 |
| Insurance (for 12 months) | $0 | $31,500 |
| Wireless HighSpeed Internet Access with branded landing page | $1,000 | $10,000 |
| Photography Expenses | $0 | $5,000 |
| Additional Funds (3-month initial phase) | $30,000 | $90,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Then-current Initial Fee |
| Technology Fee | $99 per month (PMS-to-CRS Enhanced Connectivity Fee with HAPI) |
| Operations Insights Fee | $69.50 per month |
| Conference Fee | $100 per month |
| Revenue Management Insights Fee | $79.50 per month |
| Brand Training Fee | $1,500 plus travel costs |
| In-Person Ongoing Training Fee | $1,000 for up to two days |
| Reservation System Maintenance Fee | $250 first occurrence; $500 second; $1,000 thereafter |
| Revenue Consulting and Insights Fee | $249 to $399 per month |
| Revenue Management Price Positioning Software Access Fee | $2.00 per guest room per month |
| Guest Relations Program Fee | $25 to $125 per issue |
| Online Review Response Program Fee | $39 to $150 per response |
| AHLA Fee | $3.00 per Guest Room per year |
| Late Payment Charge | Lesser of 1.5% of overdue amount or maximum rate allowed by law |
| Reactivation Fee | Lesser of 25% of past due balances or $2,000 |
| Third-Party Distribution Program Fees | Varies based on third-party fees |
| Reservation System Maintenance Services & Assistance Fee | $150 per service event |
| Accelerated Property Experience (APEx) Fee | $1,000 plus transportation, accommodations and meals |
| Travel Agency Commission Settlement Fee | Up to $0.85 per transaction |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Online training typically less than 1 hour; optional in-depth Brand Training is 1.5 days; optional in-person training at corporate offices up to 2 days |
| Classroom Training | Less than 1 hour (online) |
| Training Location | Online via Sonesta University (Access Point Owner's Portal); optional in-person at franchisee's location or franchisor's offices |
| Additional Training | Ongoing training available online or through telephone conference in topics such as sales, operations, front desk, housekeeping at no cost through Sonesta University |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchise is granted for a specific location only. Franchisee will not receive an exclusive territory. Franchisor may grant franchises to others in close proximity. Franchisor reserves the right to use the Brand anywhere and through any channel of distribution. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | Non-renewable |
| Renewal Conditions | The Franchise Agreement is non-renewable. The franchisor may, at its discretion, offer a new agreement with substantially different terms upon expiration. |
| Transfer Fee | 50% of then-applicable Initial Fee for new Franchisees |
| Transfer Conditions | All accrued monetary obligations satisfied; not in default; general release executed; transferee assumes obligations or signs new franchise agreement; transferee pays transfer fee; transferee meets franchisor's criteria; all maintenance and upgrades performed; landlord consent obtained; past due balances paid. |
| Termination for Cause | Curable defaults: failure to pay, health/safety threats, harmful conduct, excessive guest complaints, failure to procure insurance, failure to comply with Brand Standards. Cure period: 5 days. Non-curable defaults: material misrepresentation, abandonment (7+ consecutive days or 14 days in a year), loss of right to occupy property, denial of inspection rights, unauthorized transfer, breach of confidentiality, misuse of Proprietary Property, bankruptcy, insolvency. |
| Non-Compete Details | Not Applicable - no non-competition covenants during or after the franchise term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The owners of the franchise are not required to participate in the actual operation of the Signature Inn Hotel. If the owner does not personally manage the Hotel, they must employ an on-premises general manager that is sufficiently skilled and experienced to operate the Hotel. |
| Required Suppliers | Franchisees must use approved suppliers for certain supplies. The franchisor may designate sole suppliers or approved suppliers which may include the franchisor or its affiliates. Franchisees must use the designated PMS (currently ASI by Anand Systems). |
| Supply Restrictions | All products, supplies, equipment, furnishings, and services must meet Brand Standards. Franchisees must use only approved products and may submit written requests to approve alternate suppliers. |
| Franchisor Revenue from Suppliers | RLHC received $101,587 from vendors based on purchases by all Network Hotels in fiscal year ended December 31, 2021. RLHC and SRLHF derived $11,048,160 and $965,050 respectively from purchases of goods and services by franchisees and licensees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may allow franchisees to pay up to 75% of the Initial Fee in installments (typically 3-12 monthly payments). If permitted, franchisees sign a promissory note (Initial Fee Note). No interest accrues except in event of default (1.5% per month or highest rate allowed by law). The franchisor may also offer development incentives of $500 to $1,500 per Guest Room, which do not have to be repaid unless the Franchise Agreement is terminated early or a transfer occurs. |
Signature Inn Franchise Earnings — Item 19
Signature Inn does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Signature Inn does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Signature Inn Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Signature Inn System Growth
Total Units
3
Franchised
3
Company-Owned
0
Signature Inn currently operates 3 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2 | 2 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 3 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Signature Inn Franchise — FAQ
The total investment to open a Signature Inn franchise ranges from $236,445 to $6,320,445, per their Franchise Disclosure Document. This includes the initial franchise fee of $20,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Signature Inn charges a royalty fee of $50 per Guest Room per month, minimum $2,000 per month of gross sales, plus a No separate advertising fee; marketing included in Brand Fee contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Signature Inn Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Signature Inn to ensure you have the most up-to-date version.
Signature Inn does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Signature Inn has been franchising since 2016. The FDD shows an investment range of $236,445-$6,320,445, a $50 per Guest Room per month, minimum $2,000 per month royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $20,000 and the total investment ranges from $236,445 to $6,320,445 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Signature Inn and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Signature Inn or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com