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Below is an in-depth analysis and side-by-side comparison of Howard Johnson vs Downtowner Inns including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $336,552 - $9,898,595 | $133,600 - $2,602,000 |
Franchise Fee | $35,000 - $38,000 | $6,000 - $16,000 |
Royalty Fee | 4.5% | 3% |
Advertising Fee | 4% | 2.5% |
Year Founded | 1925 | 1982 |
Year Franchised | 1954 | 1982 |
Term Of Agreement | 15-20 years | - |
Term Of Agreement | 15-20 years | - |
Renewal Fee | - | - |
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/No | -/- |
Start-up Costs | Yes/No | -/- |
Equipment | Yes/No | -/- |
Inventory | Yes/No | -/- |
Receivables | Yes/No | -/- |
Payroll | Yes/No | -/- |
Training & Support |
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Training | Regional workshops | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, National media, Regional advertising | Hospitality International's Marketing Team works in concert with the Franchise Development Team for the purpose of finding new resources to attract new guests and to retain the current guest base of our franchised locations. In addition, the two teams collaborate to discover creative and cost effective ways to promote Hospitality International's five brands to encourage brand recognition and loyalty. Increasing Reservations is a key component of the Marketing Department's responsibility. Therefore, Corporate Discount Programs, Advertising and E-commerce efforts all combine to support and enhance our Reservation Services. |
Operations |
International franchisees required to buy multiple units/master licenses; 25% of all franchisees own more than one unit Number of employees needed to run franchised unit: 25 Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
Downtowner Inns and Downtowner Inns & Suites are generally limited service facilities in city centers or downtown locations that seek an economy level room rate.