Quality Inn is one of Choice Hotels Canada's longest-running banners — part of the Canadian hotel franchise landscape since the mid-1950s — and Ontario holds the largest share of its locations, including properties in Oakville, Mississauga and Toronto. That long tenure means a meaningful share of resales involve older-vintage buildings, so a Property Improvement Plan review tends to carry more real weight at this brand than at a newer-construction banner, even though Choice's family of brands is generally conversion-friendly.
Quality 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 Quality 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, with older-vintage buildings often facing a more substantial review.
4–8 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†Listed on the CFA's Look For A Franchise directory as one of Choice Hotels Canada Inc.'s long-established Canadian franchise brands, in business since the mid-1950s.
Ontario holds the largest share of the brand's Canadian locations, including Oakville, Mississauga and Toronto.
This is the first real decision in a Quality 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 Quality 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 & PIP | Required from Choice Hotels Canada under its master licence structure, typically paired with a property-standards review that carries more weight given the brand's long tenure. | 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 — often more central given the age of many Quality Inn buildings. | 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 Quality 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 that carries more weight given the brand's long tenure.
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 — often more central given the age of many Quality Inn buildings.
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 Quality Inn property changing hands, with the real estate and licence agreement moving together in one transaction.
Start my file →An older-vintage property carrying a substantial Property Improvement Plan, 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.
It can add weight to the property-standards review, since a longer-established brand naturally has more older-vintage buildings in its network, which tends to mean a more substantial Property Improvement Plan than at a newer banner. The legal process itself — consent, licence agreement, closing — stays the same; it's the property review that tends to take more work.
Both sit within Choice Hotels Canada's family and share the same master licence consent process, but Quality Inn's much longer Canadian history means a resale is more likely to involve an older building where the property-standards review carries real weight. We confirm the specific requirements for your property before you sign anything.
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.
No — the mortgage itself is tied to the real property and the buyer's own financing, not to which Choice-family brand flag sits on the building. What the brand affiliation does affect is the separate brand-approval and any required property-improvement review, which runs alongside, not instead of, the standard financing process.
It varies by property and file — an older building can mean a longer property-standards review than a newer construction, simply because there's more to assess. We build the actual timeline for your specific property into the closing date rather than relying on a general brand-wide figure.
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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 Quality Inn (Choice Hotels Canada) or its franchisor.
Tell us about your Quality Inn (Choice Hotels Canada) resale — we'll point you the right way and confirm the cost in writing before any work begins.