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Below is an in-depth analysis and side-by-side comparison of Embassy Suites Hotels vs InterContinental Hotels Group including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $17,910,500 - $85,492,500 | $70,494,125 - $103,087,610 |
Franchise Fee | $75,000 | $75,000 |
Royalty Fee | 3.5% - 5.5% | 5% |
Advertising Fee | 4% | - |
Year Founded | 1983 | 1952 |
Year Franchised | 1984 | 1954 |
Term Of Agreement | 20 years | Varies; avg. 10 years |
Term Of Agreement | 20 years | Varies; avg. 10 years |
Renewal Fee | Same as initial fee | Varies |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/Yes | No/Yes |
Payroll | No/Yes | No/Yes |
Training & Support |
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Training | Classroom Training: 32-38 hours | On-The-Job Training Classroom Training |
Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, National media, Regional advertising |
Operations |
Number of employees needed to run franchised unit: 75 Absentee ownership of franchise is allowed. |
1% of all franchisees own more than one unit
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | Yes |