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Cobblestone Inn & Suites Franchise ProfileLodging & Leisure > Lodging |
What Are the Initial Investment Requirements for a Cobblestone Inn & Suites Franchise?
To open a Cobblestone Inn & Suites franchise, you will need to consider a range of initial investment costs. The franchise fee is set at $40,000, while the total initial investment can vary significantly, ranging from approximately $64,799 to $12,438,497. Additionally, potential franchisees must have liquid cash available between $64,799 and $1,658,797 and a net worth of at least $250,000 to $1,000,000. This financial foundation is crucial for ensuring that franchisees can cover startup costs and sustain operations in the early stages.
What Are the Ongoing Fees Associated with Cobblestone Inn & Suites?
Owning a Cobblestone Inn & Suites franchise comes with ongoing financial obligations. Franchisees are required to pay a royalty fee of 5% on gross sales, which contributes to the overall support and resources provided by the franchisor. Additionally, there is a marketing fee of 2% that helps fund national advertising campaigns and brand promotion efforts. These fees are essential to maintain brand consistency and drive customer traffic, ultimately supporting the franchisee's success.
What Is the Average Revenue Potential for Cobblestone Inn & Suites Franchisees?
Franchisees of Cobblestone Inn & Suites can expect to see varying revenue levels based on their location and management. The average annual revenue per unit is approximately $1,155,000, with a median annual revenue of around $1,159,000. However, revenue can fluctuate, with the lowest annual revenue reported at $64,799 and the highest reaching $1,658,797. Understanding these figures is crucial for potential franchisees to gauge the financial viability of their investment.
What Is the Breakeven Timeline for a Cobblestone Inn & Suites Franchise?
For those considering a Cobblestone Inn & Suites franchise, the breakeven point is a key metric to evaluate. Franchisees can typically expect to reach breakeven within 12 months of operation, which is a favorable timeline in the hospitality industry. Furthermore, the investment payback period is estimated at around 30 months, allowing franchisees to recoup their initial investment relatively quickly compared to other franchise models. This financial insight can be instrumental in making informed decisions about franchise ownership.
Cobblestone 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:
Cobblestone 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 | 94 | 107 | 109 |
| Net Change YoY | 13 | 2 | |
| Franchised Units | 94 | 107 | 109 |
| Net Change YoY | 13 | 2 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Cobblestone Inn & Suites franchise offers a low initial investment starting at $64,799, with a high end reaching up to $12,438,497. This range allows for flexibility based on location, size, and specific market conditions, making it accessible for a variety of potential franchisees. The initial franchise fee is set at $40,000, which is a common entry point in the hospitality industry.
Financial Performance
Average annual revenue per unit for Cobblestone Inn & Suites stands at approximately $1,155,000, with a median annual revenue of $1,159,000. This strong revenue performance indicates a solid business model within the franchise, appealing to both new and experienced investors. The breakeven period is estimated at 12 months, providing a relatively quick return on investment.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales, along with a marketing fee of 2%. These fees contribute to the overall support and brand recognition that Cobblestone Inn & Suites provides, ensuring franchisees benefit from collective marketing efforts and operational guidance.
Financial Requirements
Franchisees need to demonstrate a net worth between $250,000 and $1,000,000, alongside cash requirements that range from $64,799 to $1,658,797. This financial criteria ensures that franchisees are adequately prepared to manage their investment and sustain operations, promoting long-term success.
Growth Potential
The Cobblestone Inn & Suites brand has shown steady growth, increasing from 94 franchised units in 2020 to 109 in 2022. This upward trend reflects a strong demand for the franchise model and the brand’s ability to attract new franchisees, indicating a promising opportunity for investors looking to enter the hospitality sector.
Operational Insights
The average operating expenses for a Cobblestone Inn & Suites franchise total approximately $370,000 annually, which is about 32% of revenue. Key expense categories include rent, utilities, and management salaries. Understanding these operational costs is crucial for franchisees to effectively manage their budgets and optimize profitability.
Frequently Asked Questions
The initial investment for a Cobblestone Inn & Suites franchise ranges from $64,799 to $12,438,497, depending on various factors such as location and size of the property.