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Baymont Inn & Suites Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
What Are the Initial Investment Requirements for a Baymont Inn & Suites Franchise?
To open a Baymont Inn & Suites franchise, you will need to prepare for a significant initial investment, which ranges from $184,467 to $9,652,858. This includes a franchise fee of $26,000. Additionally, you should have liquid cash available between $184,467 and $4,056,004, along with a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial as you consider joining this hospitality brand.
What Are the Ongoing Fees Associated with a Baymont Inn & Suites Franchise?
As a franchisee, you will be required to pay ongoing fees that include a royalty fee of 5% of your revenue and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting the company’s marketing efforts. Keeping track of these expenses will help you manage your overall profitability and ensure you are adequately prepared for the financial obligations of running a franchise.
What Is the Average Revenue Potential for Baymont Inn & Suites Franchisees?
Baymont Inn & Suites franchisees can expect varying revenue levels, with an average annual revenue of approximately $1,498,000 per unit. The revenue can range significantly, from as low as $50,450 to as high as $5,000,000, depending on factors such as location and operational efficiency. Understanding these revenue potentials can help you assess the viability of this franchise opportunity and set realistic financial goals.
How Long Does It Typically Take to Break Even with a Baymont Inn & Suites Franchise?
Franchisees can anticipate a breakeven time of around 24 months, which is relatively favorable in the hospitality industry. Additionally, the investment payback period is estimated at 60 months. This information is vital for prospective franchisees to understand the timeframe for recovering their initial investment and achieving financial stability within their franchise operation.
Baymont Inn & Suites Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Baymont Inn & Suites Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 513 | 506 | 521 |
| Net Change YoY | -7 | 15 | |
| Franchised Units | 513 | 506 | 521 |
| Net Change YoY | -7 | 15 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Company Background
Baymont Inn & Suites is a well-known hotel chain that provides comfortable accommodations at affordable prices. With a focus on delivering quality service and amenities, Baymont has established a strong presence in the hospitality industry. The brand is part of Wyndham Hotels & Resorts, which offers franchisees access to a vast network and resources for successful operations. Baymont locations are designed to cater to both leisure and business travelers, ensuring a welcoming atmosphere for all guests.
Franchise Opportunity
Investing in a Baymont Inn & Suites franchise presents a unique opportunity for aspiring entrepreneurs in the hospitality sector. With an initial investment ranging from $184,467 to $9,652,858, potential franchisees can tap into a recognized brand with a solid business model. The franchise offers comprehensive support, from training to marketing, making it easier for newcomers to navigate the complexities of hotel management and operations.
Financial Requirements
To become a Baymont Inn & Suites franchisee, applicants must meet specific financial criteria. A minimum net worth of $500,000 to $1,000,000 is required, along with cash liquidity ranging from $184,467 to $4,056,004. The initial franchise fee is set at $26,000, and ongoing royalty fees are 5% of gross sales, complemented by a 2% marketing fee. These financial requirements ensure that franchisees are well-prepared to invest in their business's success.
Revenue Potential
Baymont Inn & Suites franchisees can expect varying revenue based on location and management. The average annual revenue per unit is approximately $1,498,000, with a median revenue of $1,002,759. While some units may generate as low as $50,450, others can achieve revenues as high as $5,000,000, showcasing the potential for profitability within the franchise model.
Operational Insights
Franchisees can anticipate a breakeven period of around 24 months, allowing for a relatively quick return on investment. The investment payback period is estimated at 60 months. Understanding these operational metrics is crucial for franchisees to manage cash flow effectively and make informed decisions regarding their business strategy.
Support and Training
Baymont Inn & Suites offers extensive support and training for its franchisees, covering all aspects of hotel management. From initial training programs to ongoing operational assistance, franchisees benefit from the expertise of the Wyndham Hotels & Resorts network. This support helps ensure that franchisees can deliver high-quality service and maintain the brand's reputation in the competitive hospitality market.
Frequently Asked Questions
The initial investment for a Baymont Inn & Suites franchise ranges from $184,467 to $9,652,858, depending on various factors such as location and property size.