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Country Inn & Suites Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
Initial Investment Overview for Country Inn & Suites Franchise
The initial investment for a Country Inn & Suites franchise ranges from $1,953,039 to $12,477,789. This includes a franchise fee of $50,000, along with other startup costs that may vary based on location and size. Aspiring franchisees should be prepared for a cash requirement of $400,000 to $750,000, ensuring they have adequate financial backing to launch their business successfully.
Financial Performance Insights
Country Inn & Suites franchises generate significant revenue, with an average annual revenue of approximately $1,298,521 per unit. While the median annual revenue stands at $1,188,000, some units report revenues as low as $13,830 and as high as $2,285,000. The breakeven time is relatively quick, typically around 12 months, and franchisees can expect to recoup their initial investment within about 48 months.
Ongoing Fees and Requirements
Franchisees are subject to ongoing royalty and marketing fees, set at 5.75% and 2.5% of gross sales, respectively. To qualify for a Country Inn & Suites franchise, candidates must demonstrate a net worth between $1,000,000 and $5,000,000. This ensures that franchisees have the financial stability to support their business in the long run.
Operational Structure and Support
As of 2022, Country Inn & Suites operates 429 franchised units and 4 corporate units. The franchise model emphasizes operational support, providing franchisees with training and resources to manage their establishments effectively. This support is crucial for maintaining service quality and optimizing operational efficiency, helping franchisees thrive in a competitive hospitality market.
Country 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:
Country 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 | 447 | 447 | 433 |
| Net Change YoY | 0 | -14 | |
| Franchised Units | 443 | 443 | 429 |
| Net Change YoY | 0 | -14 | |
| Corporate Units | 4 | 4 | 4 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Country Inn & Suites franchise offers a range of initial investment options, with costs varying from $1,953,039 to $12,477,789. This investment includes the franchise fee of $50,000, along with other startup expenses necessary to establish a new unit. Potential franchisees should prepare for a cash requirement of $400,000 to $750,000 to ensure adequate liquidity during the initial phase.
Financial Performance
On average, Country Inn & Suites units generate an annual revenue of approximately $1,298,521. However, this figure can vary significantly, with the highest reported annual revenue reaching $2,285,000 and the lowest at $13,830. Understanding these revenue dynamics is crucial for potential investors to gauge profitability and operational efficiency.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5.75% on gross sales, along with a marketing fee of 2.5%. These fees contribute to the overall brand strength and marketing efforts, helping franchisees leverage the Country Inn & Suites brand recognition in a competitive market.
Breakeven and Payback Period
The average breakeven time for a Country Inn & Suites unit is approximately 12 months, indicating a relatively quick return on initial investment. Franchisees can expect to recoup their investment within about 48 months, making it an appealing opportunity for those looking for a structured path to profitability.
Corporate and Franchised Units
As of 2022, there are 429 franchised units and 4 corporate units of Country Inn & Suites, showcasing the brand's strong presence in the hospitality sector. This distribution highlights the franchise's scalability and the potential for growth in various markets.
Operating Expenses
The average operating expenses for a Country Inn & Suites unit amount to approximately $890,760 annually. Key expense categories include Selling, General and Administrative costs at $207,275 and Other Expenses from Franchised and Managed Properties at $653,060. Understanding these expenses is essential for franchisees to effectively manage their financial performance and optimize profitability.
Frequently Asked Questions
The initial investment for a Country Inn & Suites franchise ranges from approximately $1,953,039 to $12,477,789, including the initial franchise fee of $50,000.