Suburban vs Howard Johnson Franchise Comparison

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

Start-Up Costs and Fees
 
Suburban Franchise
Howard Johnson Franchise
Investment $149,175 - $8,513,044$336,552 - $9,898,595
Franchise Fee $30,000$35,000 - $38,000
Royalty Fee 4%4.5%
Advertising Fee -4%
Year Founded 19861925
Year Franchised 19891954
Term Of Agreement 10 years15-20 years
Term Of Agreement 10 years15-20 years
Renewal Fee $30K or $225/room-


Business Experience Requirements
 
Suburban Franchise
Howard Johnson Franchise
Experience
  • General business experience
    		• -

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

    Training & Support
     
    Suburban Franchise
    Howard Johnson Franchise
    Training -Regional workshops
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Co-op advertising, Ad slicks, Regional advertisingCo-op advertising, National media, Regional advertising
    Operations 80% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 6 - 10

    Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)

    		 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
     
    Suburban Franchise
    Howard Johnson Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Suburban

    Suburban Extended Stay Hotel is Choice Hotels International's economy brand in one of the most desirable hotel segments today-extended stay. Suburban provides a simple solution for longer-term housing that's as pleasant as it is affordable. Value-conscious guests looking to stay for a day, a week, a month or longer enjoy just the right hotel amenities including well-equipped kitchens in all the rooms, weekly housekeeping, guest laundry, free cable TV and high speed Internet service. The flexible floor plan concept allows for conversions, easily adopting local market-driven design, guest room mix and suitable extended stay guest room features, along with an optional fitness center, meeting space or swimming pool.

    In 2015, Suburban brand hotels received an average of 63.6% of gross room revenue through the Choice Hotels Central Reservations System (CRS) and other Choice Hotels marketing channels.

    Suburban Extended Stay Hotel franchise is supported by a nationwide team of Area Directors (AD's) who provide local market assessments, pricing and rate structure support, and operational training. Dedicated, Extended Stay sales training provides the skills necessary to compete effectively in the local market. This support makes sure your hotel adheres to the extended stay business model for optimal performance.

    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.