How much does a Howard Johnson franchise cost?
A prospective U.S. franchisee should plan around two very different 2026 Howard Johnson investment ranges. For a 100-room conversion facility, Howard Johnson International, Inc. discloses an Estimated Initial Investment of $349,981 to $3,307,038. For a 100-room new construction facility, the range is $8,975,135 to $11,896,542. Neither range includes the cost of purchasing or leasing real estate.
$8,975,135–$11,896,542 new build
These are separate 2026 FDD Item 7 ranges for 100-room hotels, not one blended range. The conversion estimate assumes the franchisee already owns the Facility; the new-construction estimate excludes land. Source: 2026 FDD, Item 7, pp. 41–48.
Data basis: Howard Johnson International, Inc., a subsidiary of Wyndham Hotel Group, LLC and ultimately Wyndham Hotels & Resorts, Inc.; U.S. Franchise Disclosure Document issued March 31, 2026; cost analysis based on Items 5, 6 and 7, with cost-relevant provisions from Items 8, 10, 11 and 17; information checked July 19, 2026. The official Howard Johnson development page identifies both new construction and conversion as available formats.
No matching 2026 FDD copy was located on an official Wyndham-controlled public page, so FDD citations in this article are unlinked Item-and-page references rather than links to a third-party document.
Why are the conversion and new-construction ranges so far apart?
The difference comes mainly from the asset being developed. The 2026 conversion range assumes an existing hotel is already owned, while the new-construction range includes Facility Construction of $7,278,765 to $9,425,545 and a Construction Contingency of $363,938 to $471,277. A conversion can still require extensive Facility Improvements, but its Item 7 range begins at zero for several property-condition categories.
The common scale runs from $0 to the new-construction maximum of $11,896,542.
Interpretation: the format choice changes the cost contract before local site, labor and property-condition variables are considered.
Source: Howard Johnson International, Inc. 2026 FDD, Item 7, pp. 41–48. Official figures; no midpoint or average used.
The low end of the conversion range is not a generic “cheap hotel conversion.” It assumes an existing Facility in strong condition, with several architectural, renovation and technology categories at or near zero. A property improvement plan can move the project sharply toward the upper end.
What is included in the 100-room new-construction estimate?
The 2026 new-construction estimate includes franchise payments, design and construction, technology, furniture, signage, opening inventory, pre-opening wages and three months of Additional Funds. The largest disclosed cost entity is Facility Construction, but the total also includes multiple six-figure supporting categories.
Development, contract and technology costs
Howard Johnson 2026 FDD, Item 7, pp. 41–44. Amounts apply to a 100-room new-construction Facility.
| Item 7 expenditure | Disclosed range | When paid |
|---|---|---|
| Initial Fee, including Application Fee | $35,000 | $2,500 with application; balance at Franchise Agreement signing |
| Photos | $2,450–$6,500 | As incurred after opening |
| Training Tuition | $5,100–$6,600 | As incurred after opening |
| Training Expenses | $3,200–$5,500 | Third-party costs before opening; franchisor or affiliate charges after opening |
| Market Study | $5,000–$15,000 | Before construction |
| Architecture, Design and Engineering; environmental work; permits, licenses, deposits and related fees | $246,535–$437,100 | As incurred before opening |
| Facility Construction | $7,278,765–$9,425,545 | As incurred before opening |
| Construction Contingency | $363,938–$471,277 | As incurred; calculated as 5% of Facility Construction |
| Technology Systems | $69,632–$71,632 | As incurred before opening |
Premises, opening and working-capital costs
| Item 7 expenditure | Disclosed range | When paid |
|---|---|---|
| Property Management Set-Up and Installation | $6,000–$22,100 | Before opening |
| Furniture, Fixtures and Equipment | $458,750–$615,536 | As incurred before opening |
| Signage | $20,000–$80,000 | As incurred before opening |
| Opening Inventory | $222,734–$243,692 | As incurred before opening |
| Insurance | $22,500–$65,000 | Lump sum before opening |
| Grand Opening Advertising | $3,000–$14,500 | As incurred before opening |
| Pre-Opening Wages | $83,293–$148,888 | As incurred before opening |
| Miscellaneous Non-Tangible Asset Costs | $19,196–$37,035 | As incurred before opening |
| Additional Funds for 3 Month Initial Period | $130,042–$195,637 | As incurred after opening |
Official total: $8,975,135 to $11,896,542. The FDD also presents a Total Cost per Room of $89,751 to $118,965 for the 100-room model. That per-room figure is part of the FDD table; it does not include land.
What is included in the 100-room conversion estimate?
The 2026 conversion estimate is driven by the existing property's condition. Facility Improvements range from $0 to $1,712,500, while Architecture, Design and Engineering and related fees range from $0 to $125,000. Furniture, Fixtures and Equipment can range from $116,268 to $615,536.
Each bar shows the maximum, not a typical or expected amount, for the 100-room conversion format.
Interpretation: the upper end is primarily a renovation and replacement scenario, not merely the Initial Fee plus brand conversion paperwork.
Source: Howard Johnson International, Inc. 2026 FDD, Item 7, pp. 45–48. Maximum-bound comparison; values are not additive estimates.
Conversion development and integration costs
Howard Johnson 2026 FDD, Item 7, pp. 45–48. Amounts apply to a 100-room conversion Facility.
| Item 7 expenditure | Disclosed range | When paid |
|---|---|---|
| Initial Fee, including Application Fee | $35,000 | $2,500 with application; balance at Franchise Agreement signing |
| Photos | $2,450–$6,500 | As incurred after opening |
| Training Tuition | $2,850–$6,600 | As incurred after opening |
| Training Expenses | $1,200–$3,500 | Third-party costs before opening; franchisor or affiliate charges after opening |
| Temporary Signage | $0–$1,250 | Before opening, if permanent signage is not installed in time |
| Architecture, Design and Engineering; environmental work; permits, licenses, deposits and related fees | $0–$125,000 | As incurred before opening |
| Facility Improvements | $0–$1,712,500 | As incurred before opening |
| Conversion Contingency | $0–$85,625 | As incurred; calculated as 5% of Facility Improvements |
| Technology Systems | $1,500–$71,632 | As incurred before opening |
Conversion equipment, opening and working-capital costs
| Item 7 expenditure | Disclosed range | When paid |
|---|---|---|
| Property Management Set-Up and Installation | $6,000–$22,100 | Before opening |
| Furniture, Fixtures and Equipment | $116,268–$615,536 | As incurred before opening |
| Signage | $15,000–$80,000 | As incurred before opening |
| Opening Inventory | $6,794–$243,692 | As incurred before opening |
| Insurance | $22,500–$65,000 | Lump sum before opening |
| Grand Opening Advertising | $3,000–$14,500 | As incurred before opening |
| Miscellaneous Non-Tangible Asset Costs | $7,377–$22,966 | As incurred before opening |
| Additional Funds for 3 Month Initial Period | $130,042–$195,637 | As incurred after opening |
Official total: $349,981 to $3,307,038. The FDD's Total Cost per Room is $3,500 to $33,070 for the 100-room conversion model. The official Wyndham conversion page also directs prospective owners to the applicable brand's Item 7 for detailed conversion ranges.
When is the money paid?
Howard Johnson's cost schedule is staged. The first required payment is the non-refundable Application Fee, while the largest property, construction and equipment payments are generally made to third parties as the project advances. Several training and photography charges are incurred after opening, and Additional Funds cover the first three operating months.
- Application submissionPay the $2,500 Application Fee. If Howard Johnson approves the Franchise Application, this amount is credited toward the Initial Fee; if the application is not approved, the fee is forfeited.
- Franchise Agreement signingPay the balance of the Initial Fee, calculated as the greater of $35,000 or $350 per guest room. For the 100-room Item 7 models, the disclosed Initial Fee is $35,000 including the Application Fee.
- Development and pre-opening periodPay architecture, construction or improvements, contingency, technology, Furniture, Fixtures and Equipment, Signage, Opening Inventory, insurance and other project costs as incurred. New construction may also require a Market Study before construction and Pre-Opening Wages.
- At least 30 days before openingPay the Property Management System Set-Up and Implementation Fee: $6,000 for SynXis or $11,000 to $22,100 for OPERA, plus applicable interface costs. Source: 2026 FDD, Items 5 and 6, pp. 27 and 35–36.
- Opening and first three monthsRecurring Fees begin on the Opening Date. Photos and parts of Training Tuition may be billed after opening. The Item 7 Additional Funds range of $130,042 to $195,637 is already included in the official total and covers the first three months.
Additional Funds are not an extra amount to add on top of the Item 7 total. They are one of the line items already included in both official investment ranges.
Which Howard Johnson fees continue after opening?
The core recurring percentage charges are a 5.0% Royalty, a 1.5% Room Sales Charge and a 2.0% Marketing Contribution, each based on Gross Room Revenues and generally due monthly by the third day of the following month. These are not the only continuing charges: technology, loyalty, reservation-channel, training and optional service fees can also apply.
| Core fee | Amount and basis | Timing |
|---|---|---|
| Royalty | 5.0% of Gross Room Revenues | Monthly, by the third day after the month in which GRR accrues |
| Room Sales Charge | 1.5% of Gross Room Revenues | Same due date as Royalty |
| Marketing Contribution | 2.0% of Gross Room Revenues | Same due date as Royalty |
Source: 2026 FDD, Item 6, pp. 28–29. Gross Room Revenues is the FDD-defined fee base and is not the same as all hotel revenue.
The three disclosed core percentage fees total 8.5% of Gross Room Revenues when added arithmetically: 5.0% + 1.5% + 2.0%. This derived figure excludes every reservation, loyalty, technology, service and event-triggered fee.
Technology, reservation and program charges
The following cost entities can materially change the ongoing bill. Some are mandatory, some apply only to qualifying reservations, and some are optional services. They should not be treated as one universal percentage.
| Fee or program | Disclosed amount | Basis or trigger |
|---|---|---|
| PMS Monthly Support and Service Fee | $734–$1,050/month | SynXis, OPERA Foundation or OPERA Standard; amount depends on room count |
| OPERA Cloud Premium PMS support | $13.25/room/month | Premium OPERA level |
| Wyndham Connect Plus Fee | 3.5% of GRR for each booked reservation | Reservations booked through the required WCP service |
| Loyalty Program Charge | 4.25%–5.5% | Amounts on which members earn points or other program currency |
| Digital Pay-For-Performance Commission | Currently 7%; up to 10% of GRR | Consumed reservations generated through the PFP program |
| GDS, Third Party Channel and Internet Booking Fees | $2.08/reservation for each applicable channel | Reservation transaction basis; channel-specific charges can apply |
| Agency Commissions | Up to 20% of GRR | Qualifying consumed reservations through agencies and related channels |
| Member Benefits Commissions | Up to 10% of GRR | Reservations booked and consumed through the Member Benefits Program |
| Continuing Education | $600/year | Required access to continuing education materials and support |
| Chain Conference Fee | $2,000 first attendee; $1,750 each additional attendee | Conference currently held about every 18–24 months; billed even if required attendance is missed |
Source: 2026 FDD, Item 6, pp. 30–36. Fixed-dollar fees may be adjusted under the Franchise Agreement, and several channel charges may change with third-party costs.
Optional service fees
- Standard RMS
- 0.75% of Gross Room Revenues, with a $645 monthly minimum and $1,395 monthly maximum.
- Premium RMS
- 1.0% of Gross Room Revenues, generally with a $1,450 monthly minimum and $2,450 monthly maximum; $3,500 monthly for Facilities with annual GRR of $3,000,000 or more.
- Premium Plus RMS
- $5,425 per month.
- Remote Sales Service
- $1,500 per month.
- Mobile Operations Program
- $0.60 per guest room per month; currently optional, but the FDD permits future mandatory adoption on notice.
- Emergency Safety Device
- $35 per month for Mobile Operations Program users who select the optional feature.
Which fees arise only after a transfer, delay, default or other event?
Item 6 contains several potentially significant charges that do not arise in ordinary monthly billing. The applicable trigger matters as much as the stated amount.
Source: 2026 FDD, Item 6, pp. 28–41, and Item 17, pp. 75–81. State-specific addenda can alter enforceability.
Does Howard Johnson publish a liquid-capital or net-worth requirement?
The 2026 FDD does not disclose a numeric Liquid Capital or Net Worth minimum for a Howard Johnson applicant. It does require adequate financial liquidity and resources to perform the Franchise Agreement, and significant owners generally sign a Personal Guaranty. Depending on ownership structure and state law, spouses may also be required to sign guaranty or financing documents.
Item 10 also describes the Women Own the Room Development Incentive, targeted at $2,500 per guest room and capped at 50% of the franchisee's equity investment, subject to majority women ownership and approval. Wyndham's official Women Own the Room page describes enhanced capital support and reduced Initial Franchise Fee availability for qualifying new-construction and conversion projects.
The BOLD Support program provides tailored support for qualifying Black entrepreneurs and may include a Development Incentive. The official BOLD program page describes enhanced capital support, lender introductions and certain preferred-partner discounts. Neither program guarantees approval or replaces the applicant's required equity and project funding.
Source: 2026 FDD, Item 10, pp. 54–57. The general Wyndham hotel-franchise cost guidance distinguishes the FDD's initial and continuing fee disclosures from property acquisition and other project costs.
Which costs are not fully resolved by the official range?
The Item 7 totals are not complete real-estate acquisition budgets. They also contain assumptions and exclusions that require project-specific quotes. The most important unresolved items are below.
Before treating either Item 7 range as a financing target, reconcile the current Property Improvement Plan or construction scope, real-estate cost, excluded local fees, tax and freight, required insurance quotations, PMS configuration, lender requirements and the exact amount of owner equity. The FTC franchise buyer guide explains how Items 5 through 7 should be reviewed alongside costs that the FDD may not quantify.
What capital distinction matters most?
The main distinction is between the Estimated Initial Investment, the Initial Fee, the applicant's available liquidity and the fees that continue after opening. For a 100-room Howard Johnson, the Initial Fee is only one $35,000 line in much larger 2026 Item 7 ranges. The conversion range depends heavily on the existing Facility's renovation scope; the new-construction range is dominated by Facility Construction and excludes land. No numeric Liquid Capital or Net Worth minimum is published, so the unresolved capital question is the amount of equity and liquidity Howard Johnson and the applicant's lender will require for the specific property and financing structure.