Rodeway Inn sits at the economy end of Choice Hotels Canada's portfolio, alongside Comfort, Quality, Clarion, Sleep Inn and Ascend, and a resale runs the same master-licence consent process as its higher-tier siblings. Where it tends to differ in practice is the scope of the property-standards review — at this tier it generally focuses on baseline life-safety, cleanliness and maintenance benchmarks rather than the amenity-heavy renovation packages associated with upscale conversions, though it's worth confirming exactly what's being asked of you before you price out any required work.
Rodeway 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 Rodeway 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 for its tier — typically a narrower scope than an upscale-conversion review.
3–5 weeks†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's called a private deal.
assessed early†Getting to closing
Title, survey, mortgage financing and environmental review for the real property proceed alongside the brand review; a licensed lounge or restaurant is uncommon at this tier, but where one exists, AGCO transfer runs separately.
4–8 weeks, in parallel†The incoming owner signs a new, current-form licence agreement with Choice Hotels Canada, incorporating any brand-standard items identified during the review.
negotiated alongside brand approval†Real property, business assets, and the licence agreement close together, with a defined timeline for any required standards items after taking over.
1 day, plus an upgrade-completion tail if applicable†Listed on the CFA's Look For A Franchise directory as an active Choice Hotels Canada Inc. franchise brand, in business since the early 1990s.
Included within Choice Hotels Canada's national network, which spans Ontario alongside other provinces.
This is the first real decision in a Rodeway 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 Rodeway 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. |
| Master licence consent | Required from Choice Hotels Canada under its master licence structure, paired with a property-standards review scoped to the brand's economy tier. | Required for the change of control, with the same tier-appropriate standards review still applying. |
| Property-standards scope | Generally focused on life-safety, cleanliness and maintenance benchmarks rather than a full amenity-renovation package — worth confirming rather than assuming. | The same tier-appropriate review applies regardless of how the transaction is structured. |
| 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 Rodeway 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.
Required from Choice Hotels Canada under its master licence structure, paired with a property-standards review scoped to the brand's economy tier.
Required for the change of control, with the same tier-appropriate standards review still applying.
Generally focused on life-safety, cleanliness and maintenance benchmarks rather than a full amenity-renovation package — worth confirming rather than assuming.
The same tier-appropriate review applies regardless of how the transaction is structured.
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 Rodeway Inn property changing hands, with the real estate and licence agreement moving together and a modest property-standards review.
Start my file →A property where the standards review flags more significant items than expected, an existing mortgage, 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 are the same — master licence consent, a property-standards review, and a new licence agreement — but the scope of the standards review tends to be narrower at the economy tier, generally focused on life-safety and maintenance rather than an amenity-heavy renovation package. We confirm the actual scope for your property rather than assuming from the tier alone.
Yes — the master licence consent process applies across Choice Hotels Canada's brand family regardless of tier. What differs is what the property-standards review is actually looking for once that consent process is underway.
It's less common than at higher-tier properties, but where a licensed lounge or restaurant does exist, an AGCO transfer runs on its own track alongside the real estate and brand approvals just as it would for any licensed premises.
Often, though not guaranteed — a budget-tier positioning can mean a shorter list of required upgrades than a full-service brand, but the scope, cost allocation and completion timeline still get assessed property-by-property and written into the deal terms rather than assumed from the brand tier alone.
It varies by property and file, but a narrower standards-review scope can move the brand-approval side faster than an upscale conversion would. We build the actual timeline for your specific property into the closing date rather than relying on a general comparison.
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 Rodeway Inn (Choice Hotels Canada) or its franchisor.
Tell us about your Rodeway Inn (Choice Hotels Canada) resale — we'll point you the right way and confirm the cost in writing before any work begins.