Comfort Inn operates in Ontario under Choice Hotels Canada's master licence structure, one of several Choice-family brands — alongside Quality, Clarion and Sleep Inn — known for approving conversions of existing properties rather than requiring ground-up construction. A resale still runs the real estate and the brand approval on parallel tracks, but Choice's conversion-friendly model can make the brand-side timeline shorter than some flag transfers.
Comfort Inn (Choice Hotels Canada) resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer covers the real estate and the Comfort Inn franchise licence together, conditioned on Choice Hotels Canada approving the transfer to the incoming owner.
2–4 weeks†Choice Hotels Canada reviews the incoming operator and assesses the property against current brand standards — typically a faster process where the hotel is already flagged under a Choice brand.
3–6 weeks†Mortgage financing, title, survey, and environmental review for the real property proceed alongside the brand review.
4–8 weeks, in parallel†Getting to closing
Where the property has a licensed lounge or restaurant, an AGCO licence transfer or new application proceeds on its own timeline.
4–8 weeks, if applicable†The incoming owner signs a new, current-form licence agreement with Choice Hotels Canada, incorporating any required property upgrades.
negotiated alongside brand approval†Real property, business assets, and the licence agreement close together, with a defined timeline for any required brand-standard upgrades after taking over.
1 day, plus an upgrade-completion tail†CFA listing confirms a large Canadian franchise network across Choice Hotels Canada's Comfort, Quality, Clarion and Sleep Inn brands; in business since 1993.
Ontario hotels within its large Canadian franchise network.
This is the first real decision in a Comfort Inn (Choice Hotels Canada) resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The real property (if included), the hotel's operating assets, and the benefit of the Comfort Inn licence agreement, subject to Choice's consent. | The shares of the corporation holding the property and the licence agreement — everything it owns and owes. |
| Seller's liabilities | Generally stay behind with the seller, apart from anything specifically assumed. | Generally come with the company, known and unknown, including any mortgage obligations. |
| Master licence consent | Required from Choice Hotels Canada under its master licence structure, typically paired with a property-standards review. | Required for the change of control, with the same property-standards review still applying. |
| Real property | Title, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing. | The property stays titled in the corporation's name — diligence still confirms what the company actually holds. |
| Staff (ESA) | Employment Standards Act continuity rules typically apply to how hotel staff carry over. | Employment generally continues uninterrupted — the employer doesn't change. |
| Tax angle | Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer. | Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over. |
The real property (if included), the hotel's operating assets, and the benefit of the Comfort Inn licence agreement, subject to Choice's consent.
The shares of the corporation holding the property and the licence agreement — everything it owns and owes.
Generally stay behind with the seller, apart from anything specifically assumed.
Generally come with the company, known and unknown, including any mortgage obligations.
Required from Choice Hotels Canada under its master licence structure, typically paired with a property-standards review.
Required for the change of control, with the same property-standards review still applying.
Title, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing.
The property stays titled in the corporation's name — diligence still confirms what the company actually holds.
Employment Standards Act continuity rules typically apply to how hotel staff carry over.
Employment generally continues uninterrupted — the employer doesn't change.
Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer.
Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single, already-flagged Comfort Inn property changing hands, with the real estate and licence agreement moving together in one transaction.
Start my file →A conversion of an independent property into the Comfort Inn brand, a deal involving an existing mortgage or licensed lounge, or a buyer acquiring more than one Choice-family property at once.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
The core mechanics — brand consent, a property-standards review, and a new licence agreement — are similar across most hotel franchise systems. What differs is which franchisor is doing the reviewing and how its master licence structure is set up; we confirm the specific requirements for your brand before you sign anything.
It's a related but separate transaction — a conversion involves a new licence application to Choice Hotels Canada rather than a transfer of an existing one, and the property-standards review happens before the flag goes up rather than during a resale. We can walk you through which path actually applies to your deal.
No — a licensed lounge or restaurant isn't a requirement of the brand itself. Where one exists, an AGCO transfer runs alongside the real estate and brand approvals; where it doesn't, that step simply doesn't apply to your deal.
That depends on the structure. An asset sale usually means new financing for the buyer and a payout of the seller's existing mortgage at closing; a share sale can sometimes allow an existing mortgage to stay in place, subject to the lender's consent. We review which makes sense for your numbers.
It varies by property and file, but Choice's brand family is generally known for approving conversions of existing hotels efficiently. That said, we build the actual timeline for your specific property into the closing date rather than relying on a general reputation.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Comfort Inn (Choice Hotels Canada) or its franchisor.
Tell us about your Comfort Inn (Choice Hotels Canada) resale — we'll point you the right way and confirm the cost in writing before any work begins.