Ramada Worldwide vs Howard Johnson Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Ramada Worldwide vs Howard Johnson including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Ramada Worldwide Franchise
Howard Johnson Franchise
Investment $220,731 - $9,291,313$336,552 - $9,898,595
Franchise Fee $35,000$35,000 - $38,000
Royalty Fee 4.5%4.5%
Advertising Fee 4%4%
Year Founded 19541925
Year Franchised 19901954
Term Of Agreement 15-20 years15-20 years
Term Of Agreement 15-20 years15-20 years
Renewal Fee --


Business Experience Requirements
 
Ramada Worldwide Franchise
Howard Johnson Franchise
Experience --

Financing Options
 
Ramada Worldwide Franchise
Howard Johnson Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees No/NoNo/No
Start-up Costs Yes/NoYes/No
Equipment Yes/NoYes/No
Inventory Yes/NoYes/No
Receivables Yes/NoYes/No
Payroll Yes/NoYes/No

Training & Support
 
Ramada Worldwide Franchise
Howard Johnson Franchise
Training Regional workshopsRegional workshops
Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluationsNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing Co-op advertising, Ad slicks, National media, Regional advertisingCo-op advertising, National media, Regional advertising
Operations

Number of employees needed to run franchised unit: 10 - 15

Absentee ownership of franchise is allowed.

 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
 
Ramada Worldwide Franchise
Howard Johnson Franchise
US Expansion --
Canada Expansion NoNo
International Expansion YesYes

Company Overviews

About Ramada Worldwide

In 1954 a group of investors opened an inn in Flagstaff, Arizona, the first in a series of motor hotels to be opened by the group. Five years later, the chain was named Ramada, meaning 'a shaded resting place' in Spanish. Today Ramada, which has been owned by Cendant Corp. since 1997, operates hotels throughout the United States. The company is comprised of three segments, Ramada Inns, Ramada Limiteds and Ramada Plaza Hotels, serving value-conscious and mid-market travelers.

Ramada Worldwide Inc. is a Delaware company, a backup of Wyndham Hotel Group, LLC, which is possessed by Wyndham Worldwide Corporation. They claim the exclusive Ramada System, giving transient visitor lodging administrations to the general population, including certain exchange names, benefit marks and other business images. They offer and bolster establishments for Ramada Chain visitor lodging offices.

Establishment Offer: Qualified people are offered an establishment to work a Ramada Chain visitor lodging office at a solitary, characterized area. There are two distinct sorts of offices:

1) A "Ramada" office offers agreeable alluring lodging at mid to upper mid-advertise rates in many markets, and has around 100 visitor rooms. A Ramada Facility highlights either a cordiality range with both relaxation seating and breakfast seating and administration territories and also a "Ramada Convenience Mart", or a full administration eatery and mixed drink relax. Ramada Facilities additionally have meeting rooms, ringer benefit upon demand, complimentary rapid web get to, clothing/valet benefit, a swimming pool and a wellness office.

2) A "Ramada Plaza Hotel" office is an inside hall structure of no less than four stories. It by and large has no less than 150 visitor rooms, maybe a couple eateries, meal and meeting offices pleasing no less than 100 individuals, a mixed drink relax, a board room, swimming pool and practice offices, a business focus, a sundry shop, and chime, valet and room administrations.

The total investment necessary to begin operation of a Ramada franchise for a new construction project ranges from the low end of $6,536,015 for a 100 room Ramada facility to the high end of $15,007,666 for a 150 room Ramada Plaza facility.
The total investment necessary to begin operation of a Ramada franchise if you already own a facility typically ranges from the low end of $220,731 for a 100 room Ramada facility to the high end of $6,884,239 for a 150 room Ramada Plaza facility. Land acquisition costs are not included in these ranges. The above amounts include a range of $43,900 to $89,225 that must be paid to the franchisor or an affiliate.

#276 in Franchise 500 for 2020.
#368 in Franchise 500 for 2021.








About Howard Johnson

With an advance of $500, Howard Dearing Johnson obtained a little patent drug shop in Quincy, Massachusetts, in 1925. He utilized an antiquated, hand-wrenched cooler in the store's storm cellar to make vanilla, chocolate and strawberry frozen yogurt for the shop's pop wellspring. After three years, with menu increases like franks and ground sirloin sandwiches, he opened the primary Howard Johnson's Restaurant. By 1935, there were 25 Howard Johnson frozen yogurt and sandwich remains in Massachusetts. After five years, with more than 100 eateries on the Atlantic Coast, Johnson opened the main road eatery on the Pennsylvania Turnpike. In 1954, when the organization worked 400 eateries, the primary Howard Johnson lodging opened in Savannah, Georgia. After Johnson's child assumed control over the organization in 1959, it was in this way procured by three unique organizations before Cendant Corp. purchased the inn network in 1990. Howard Johnson Int'l. establishments offer mid-evaluated holding up at Howard Johnson Plaza Hotels, Howard Johnson Hotels, Howard Johnson Inns and Howard Johnson Express Inns. Youngsters remain free at Howard Johnson, and Road Rally and AARP offer senior rebates at the lodgings.

The total investment necessary to begin operation of a Howard Johnson franchise for a 100 room new construction facility ranges from $5,393,268 to $9,898,595.
The total investment necessary to begin operation of a Howard Johnson franchise for a 100 room conversion facility ranges from $336,552 to $2,967,018.
Land acquisition costs are not included in these ranges. The above amounts include a range of $43,600 to $72,925 that must be paid to the franchisor or an affiliate.

#289 in Franchise 500 for 2020.