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Hotel Franchise
One of the most recognized brands in the midscale lodging segment, established in 1941, it is the first hotel chain. Quality® is a popular limited-service midscale hotel chain. Known around the world for its friendly, professional service, clean accommodations, a good nights rest on our signature Quality Sleeper bed by Serta® mattress, new bedding and high speed internet, it appeals to both leisure and business travelers. Quality Inn®, Quality Suites® or Quality Inn & SuitesTM are excellent conversion brands for midscale hotels looking to strengthen their position in the market.
The Quality hotel chain is part of the Choice Hotels International® family of brands. With more than 65 years experience, Choice Hotels® is one of the worlds largest franchisors, with over 6,600 properties open andunder development worldwide.
All Choice hotels are backed by $175 million in marketing support, a central reservation system that booked $2 billion in gross reservations in 2007, our award-winning guest loyalty program, Choice Privileges®, which has over 6 million members, and a massive service organization focused entirely on your needs.

| LOW INITIAL & ONGOING FEES* | |
| Initial Fee | $300 per room, $35,000 minimum; $50,000 minimum for Quality Suites |
| Royalty Fee | A monthly assessment of 4.65% of gross room revenues |
| System Fee | A monthly assessment of 3.85% of gross room revenues |
| Other Fees | Please refer to April 1, 2008 Quality Franchise Disclosure Document |
| Term | The standard term of the agreement is 20 years with mutual termination dates atyears 5, 10, and 15 of the opening date. |
Key Brand Identifiers
A standard Quality Inn hotel is a multi-story with 150-rooms. Quality Inn & Suite hotels include a minimum of 75-guestrooms with 20% fully divided 2-room suites. Quality Suite hotels have a minimum 75 fully divided 2-room suites with a cooked-to-order breakfast and managers reception included in the room rate.
