|
SureStay Hotel Franchise ProfileLodging & Leisure > Lodging |
What Are the Initial Investment Requirements for a SureStay Hotel Franchise?
To start a SureStay Hotel franchise, you will need to prepare for a substantial initial investment, ranging from $901,750 to $2,951,015. This includes a franchise fee of $29,000. Additionally, you'll need to ensure you have the necessary cash on hand, which falls within the same range as the total investment. Understanding these financial commitments is crucial for aspiring franchisees to gauge their readiness for ownership.
What Ongoing Fees Should You Expect as a SureStay Hotel Franchisee?
As a franchisee of SureStay Hotel, you will be responsible for ongoing fees that include a royalty fee of 5% on gross sales and a marketing fee of 5%. These fees are essential for maintaining brand standards and supporting marketing efforts that drive customer traffic to your hotel. It's important to factor these costs into your financial projections to ensure your business remains profitable.
What Is the Average Revenue Potential for a SureStay Hotel Franchise?
The average annual revenue for a SureStay Hotel franchise unit is approximately $536,596, with a median annual revenue of $89,319. However, revenue can vary significantly, with the lowest reported annual revenue being $25,000 and the highest reaching up to $2,951,015. Understanding this revenue range can help you set realistic expectations and financial goals for your franchise operation.
How Quickly Can You Expect to Break Even with a SureStay Hotel Franchise?
Franchisees can typically expect to break even within 12 months of opening their SureStay Hotel. This quick turnaround is supported by the potential for strong revenue generation. Additionally, investment payback is estimated at around 36 months, allowing franchisees to recoup their initial investment in a relatively short timeframe. This financial outlook can be an attractive feature for potential investors considering this franchise opportunity.
SureStay Hotel 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:
SureStay Hotel Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 | |
| Franchised Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The SureStay Hotel franchise requires an initial investment ranging from $901,750 to $2,951,015. This investment includes the initial franchise fee of $29,000, which grants access to the brand's operational systems and support. Potential franchisees should prepare for a comprehensive financial commitment to ensure a successful launch and operation of their hotel.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales, alongside a marketing fee of 5%. These fees contribute to the ongoing support and marketing efforts provided by the franchisor, helping to maintain brand visibility and operational effectiveness. Understanding these recurring costs is essential for financial planning and profitability analysis.
Revenue Potential
The average annual revenue per unit for a SureStay Hotel is approximately $536,596, with a median annual revenue of $89,319. However, revenue can vary significantly, with the lowest reported annual revenue at $25,000 and the highest reaching $2,951,015. This range highlights the importance of location, management, and market conditions in determining financial success.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 12 months of operation. The investment payback period is estimated at 36 months, indicating that franchisees should plan for a sustained effort to establish their hotel and generate consistent revenue before recouping their initial investment.
Operational Expenses
Average operating expenses for a SureStay Hotel total about $425,102 annually, which is approximately 79.17% of revenue. Major expense categories include compensation, advertising, and general administrative costs. Effective management of these expenses is crucial for maintaining profitability and ensuring operational efficiency.
Franchise Growth
As of 2023, SureStay Hotel has not yet established any franchised or corporate units. This presents a unique opportunity for early investors to enter a new franchise model in the hospitality sector, potentially benefiting from brand development and market positioning as the franchise expands.
Frequently Asked Questions
The initial investment for a SureStay Hotel franchise ranges from $901,750 to $2,951,015. This includes the franchise fee, equipment, and other startup costs.