Kampgrounds of America - KOA Cost Comparisons

Dave Drum started Kampgrounds of America in 1961. He and other Billings, Montana, businessmen set up camping facilities off highways 87 and 212 in 1962, when the World's Fair in Seattle was attracting tourists along those routes. As he started franchising that year, Drum opened a system of campgrounds along America's highways. He was forced to use a 'k' in 'kampgrounds' instead of a 'c' because of a copyright challenge. KOA campgrounds offer hot showers, clean restrooms, laundry facilities, convenience stores, swimming pools and playgrounds. Eight of every 10 KOA campgrounds is within 100 miles of a metropolitan area, and some offer economical lodging for tourist destinations. The parent company, KOA Holdings, also owns Franchise Services, whose subsidiaries include franchise companies Sir Speedy, PIP Printing and Comprehensive Business Services.

The investment necessary to purchase an existing KOA campgrounds franchise ranges from $225,950 to $4,462,925, which includes the initial franchise fee of $7,500 that the franchisee must pay to the franchisor.
The investment necessary to convert an independent campground to a KOA campground ranges from $26,750 to $482,050, which includes the initial franchise fee of $11,250 that the franchisee must pay to the franchisor.
The cost to construct a new KOA campground will range from $1,474,100 to $4,091,900, which includes the initial franchise fee of $30,000 that the franchisee must pay to the franchisor.