Econo Lodge is Choice Hotels Canada's budget-tier banner, in the Canadian market since 1990 — a shorter history than sibling brands like Quality Inn — and typically a smaller-format, limited-service property without a full restaurant or lounge. That combination tends to make the Property Improvement Plan review lighter in scope than at Choice's fuller-service banners, though the master licence consent and property-standards review still apply in full.
Econo Lodge (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 Econo Lodge 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 narrower scope given the budget-tier format.
3–5 weeks†Mortgage financing, title, survey, and environmental review for the real property proceed alongside the brand review.
4–7 weeks, in parallel†Getting to closing
A licensed lounge or restaurant is uncommon at this budget tier, but where one exists, an AGCO licence transfer 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 a short upgrade-completion tail†Listed on the CFA's Look For A Franchise directory as an active Choice Hotels Canada Inc. franchise brand, in business in Canada since 1990.
Included within Choice Hotels Canada's national network, which spans Ontario alongside other provinces.
This is the first real decision in a Econo Lodge (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 Econo Lodge 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 sized to the brand's budget-tier format. | 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 Econo Lodge 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 sized to the brand's budget-tier format.
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 Econo Lodge property changing hands, with the real estate and licence agreement moving together in one transaction.
Start my file →A property requiring more than the brand's typical Property Improvement Plan, a deal involving 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.
Often, in scope — the budget-tier, limited-service format tends to mean a narrower Property Improvement Plan and no licensed restaurant to coordinate, so there are typically fewer moving pieces than at a fuller-service property. The core legal process — master licence consent, real estate closing, a new agreement — is the same.
No — a licensed lounge or restaurant isn't part of this budget-tier format, and most properties don't have one. Where one does exist, an AGCO transfer runs alongside the real estate and brand approvals.
Yes, compared to sibling brands like Quality Inn, which trace their Canadian presence back to the 1950s. That generally means fewer decades-old properties in the network, though each building's actual condition still gets assessed on its own during the property-standards review.
Not the mortgage mechanics themselves — an asset sale still typically means new financing for the buyer and payout of the seller's mortgage, or a share sale can sometimes let an existing mortgage stay in place with lender consent, the same as for any hotel brand. What an economy-tier positioning can affect is the scope of any required property-improvement upgrades weighed alongside that financing.
Franchisors in this sector typically look for financial capability and relevant operating experience, though the specific bar varies by property. That review happens through Choice Hotels Canada's own approval process, separate from our legal work on title, financing, and the agreement itself.
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 Econo Lodge (Choice Hotels Canada) or its franchisor.
Tell us about your Econo Lodge (Choice Hotels Canada) resale — we'll point you the right way and confirm the cost in writing before any work begins.