Howard Johnson vs Best Western Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Howard Johnson vs Best Western including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$336,552 - $9,898,595 | $50,505 - $24,773,188 |
Franchise Fee |
$35,000 - $38,000 | $45,000 - $60,000 |
Royalty Fee |
4.5% | - |
Advertising Fee |
4% | - |
Year Founded |
1925 | 1946 |
Year Franchised |
1954 | 1957 |
Term Of Agreement |
15-20 years | - |
Term Of Agreement |
15-20 years | - |
Renewal Fee |
- | - |
Business Experience Requirements |
Experience |
- | - |
Financing Options |
|
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 |
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 | - |
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 |
US Expansion |
- | Yes |
Canada Expansion |
No | - |
International Expansion |
Yes | Yes |
Company Overviews
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.
About Best Western
Best Western Hotels & Resorts headquartered in Phoenix, Arizona, is a privately held hotel brand within the BWH Hotel Group global network. With 18 brands and approximately 4,700 hotels in over 100 countries and territories worldwide, BWH Hotel Group suits the needs of developers and guests in every market. Brands include Best Western®, Best Western Plus®, Best Western Premier®, Executive Residency by Best Western®, Vīb®, GLō®, Aiden®, Sadie®, BW Premier Collection® and BW Signature Collection®. Through acquisition, WorldHotelsTM Luxury, WorldHotels Elite, WorldHotels Distinctive and WorldHotels Crafted collections are also offered. Completing the portfolio is SureStay®, SureStay Plus®, SureStay Collection® and SureStay Studio franchises.
The total investment necessary to begin operation of a 75-room Best Western hotel is $5,080,050 - $9,589,538 (for new construction) and
$505,050 - $1,939,539 (for a conversion), which includes $69,350 -
$143,438 that must be paid to the franchisor or their affiliate; the
total investment necessary to begin operation of a 90-room
Best Western
Plus hotel is $6,433,050 - $10,397,788 (for new construction) and
$608,050 - $2,406,288 (for a conversion), which includes $72,350 -
$147,188 that must be paid to the franchisor or their affiliate; the
total investment necessary to begin operation of a 120-room Best Western
Premier hotel is $13,944,450 - $24,773,188 (for new construction) and
$869,450 - $5,673,188 (for a conversion), which includes $78,350 -
$154,688 that must be paid to the franchisor or their affiliate; the
total investment necessary to begin operation of a 100-room Executive
Residency by Best Western hotel is $6,573,050 - $11,949,788 (for new
construction) and $648,050 - $3,149,788 (for a conversion), which
includes $74,350 - $149,688 that must be paid to the franchisor or their
affiliate; the total investment necessary to begin operation of a
100-room dual brand hotel (e.g., Best Western Plus and Executive
Residency by Best Western) is $6,751,750 - $12,065,838 (for new
construction) and $726,750 - $3,370,838 (for a conversion), which
includes $109,350 - $193,438 that must be paid to the franchisor or
their affiliate; the total investment necessary to begin operation of a
110-room Vīb hotel as is $9,817,150 - $14,354,988 (for new construction)
and $1,392,150 - $3,804,988 (for a conversion), which includes $76,350 -
$152,188 that must be paid to the franchisor or their affiliate; the
total investment necessary to begin operation of an 80-room GLō hotel is
$7,354,750 - $9,821,488 (for new construction) and $1,129,750 -
$2,771,488 (for a conversion), which includes $70,350 - $144,688 that
must be paid to the franchisor or their affiliate; the total investment
necessary to begin operation of a 90-room Aiden hotel is $6,494,750 -
$10,467,988 (for new construction) and $669,750 - $2,467,988 (for a
conversion), which includes $72,350 - $147,188 that must be paid to the
franchisor or their affiliate; and, the total investment necessary to
begin operation of a 120-room Sadie hotel is $13,924,750 - $24,749,488
(for new construction) and $845,750 - $5,649,488 (for a conversion),
which includes $78,350 - $154,688 that must be paid to the franchisor or
their affiliate.