CHOICE HOTELS Franchise Startup Cost, Profit Margin, Revenue and Locations
In the year 1939, a group of Southern motel owners converged to discuss issues concerning lodging in their states. At the time, there was a very bad notion the public had about most motels in the area. FBI Director had insisted that most motels at the time harbored notorious gangsters.
These owners decided to create a standard for motels and agreed to publish the names of organizations that complied with these set standards. The group was officially named the Quality Courts United and later had a name change to Choice Hotels International in 1990. The names of the hotels in the chain are Comfort, Sleep, Quality, Rodeway, Clarion and Econo Lodge. So how much is a Choice Hotels Franchise
FRANCHISE INFORMATION ABOUT THE COMPANY
Choice Hotels International can be considered to be one of the largest franchises in the world with about 7,000 hotels under the brand across the world. The company has about 75 years of experience and a highly workable franchise model.
The strength of the company’s franchises can be attributed to the size, distribution and scale of the numerous hotel chains under the big brand.
IS Choice Hotels A FRANCHISE?
A prospective franchisee with interest in the hospitality industry might want to know if Choice Hotels is a franchise. Yes the company is a franchise and they have been selling franchises since the year 1968.
WHAT IS CHOICE HOTELS FRANCHISE OFFER?
The company offers franchisees the right to operate a hotel chain under any of the trademarks or brand that is associated with the Choice Hotels International brand.
REQUIREMENTS TO BE A CHOICE HOTELS FRANCHISEE
Do you have the desire to run a hospitality business, preferably in the hotel chain business? And you would want to buy into a franchise like Choice Hotels International that has a well proven franchise model, and then you will be expected to have the following:
- Most importantly in the setting up of a hotel unit, is the availability of real estate. You will need to possess a real estate of good size that can be offer comfort to your guests when the hotel begins to function.
- The zeal and the passion to run a hospitality business. You will be expected to be a people-person with the ability to motivate your staff to deliver the best service possible to your guests.
- You will need to meet up with the financial requirements to set up a Choice Hotels franchise, which is quite on the high side.
HOW MUCH DOES A CHOICE HOTELS FRANCHISE COST?
The Choice Hotels franchise cost is the addition of all the financial requirements needed to establish a Choice Hotels franchise unit. The total investment required to set up a franchise unit will be in the tune of $88,050 to about $13,000,000. This is highly determined on the location and size of the intended hotel to be built.
Franchisees are also expected to have a net-worth requirement of about $750,000 and then a liquid cash requirement of non-borrowed funds up to the tune of $250,000
CHOICE HOTELS FRANCHISE FEE
The Choice Hotels initial franchise fee is the payment the company accepts from the franchisee in order for them to get the license to operate under the company’s brand names and identity. The fee is non-refundable and ranges between $10,000 to $60,000 – This range occurs because there are various franchises option to buy from under the Choice Hotels International brand.
Additional on-going royalty fee and an ad royalty fee is also payable to the company on a monthly basis. This payment is however variable.
DOES CHOICE HOTELS OFFER ANY FORM OF FINANCING?
The company does not offer any form of financing to their franchisees. However they have a working relationship with 3rd party lenders that offer funding to assist franchisees cover for the following costs: franchise fee, cost of equipment, startup cost, inventory payroll and account receivable.
Veterans that are discharged honourably from services are offered great discounts by the company as well.
DOES CHOICE HOTELS FRANCHISE OFFER TRAINING AND SUPPORT?
Every new franchisee with Choice Hotels International will undergo compulsory 1-week training at the company’s corporate head office. The initial training is for the owner of the franchisee or any other person designated to manage the new franchise unit. Subsequent trainings for employees of the unit will be held regionally to make it convenient for trainees to attend.
HOW TO OPEN A CHOICE HOTELS FRANCHISE
Before you can be considered to buy into Choice Hotels franchise opportunity, the company evaluates your eligibility for the franchise. You will be expected to have met with the financial requirements for the company’s franchise and also be able to meet up with some other personal qualifications.
Once that is done, you then proceed to get further information on how to open a Choice Hotels franchise. this you will start by submitting your application to the company’s website. Once your application is received, it will be reviewed by the company’s franchise manager and his team. Feed-back will then be given after the review. If your application is considered, the franchise manager will then proceed to assist you in setting up your Choice Hotels franchise unit.