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Rodeway Inn Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
What Are the Initial Investment Requirements for a Rodeway Inn Franchise?
To open a Rodeway Inn franchise, you should anticipate an initial investment ranging from $116,045 to $648,895. This includes a franchise fee of $20,000. Additionally, you will need to have cash available between $20,000 and $25,000, and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial for aspiring franchisees to gauge their readiness for this opportunity.
What Are the Ongoing Fees Associated with a Rodeway Inn Franchise?
Franchisees of Rodeway Inn are required to pay ongoing fees, which include a royalty fee of 5% on gross sales and a marketing fee of 3.5%. These fees contribute to the brand's overall marketing efforts and operational support, ensuring that franchisees can benefit from a recognized name and shared resources. It’s important to factor these costs into your financial planning for sustained profitability.
What Is the Revenue Potential for a Rodeway Inn Franchise?
The average annual revenue per Rodeway Inn unit is approximately $36,750, with a median revenue of $33,760. However, revenues can vary significantly, with the lowest reported annual revenue at $2,580 and the highest at $131,040. Understanding this revenue spectrum can help potential franchisees set realistic financial expectations and develop strategies to maximize their earnings.
How Long Does It Take to Break Even with a Rodeway Inn Franchise?
Franchisees can expect to break even within approximately 24 months of operation. This timeframe is essential for planning, as it indicates when you might start seeing a return on your investment. Additionally, the investment payback period aligns with the breakeven time, highlighting the potential for financial recovery in a relatively short span. Knowing these metrics can help franchisees manage their cash flow effectively.
Rodeway Inn Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Rodeway Inn Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 528 | 503 | 472 |
| Net Change YoY | -25 | -31 | |
| Franchised Units | 528 | 503 | 472 |
| Net Change YoY | -25 | -31 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Rodeway Inn franchise offers a range of initial investment options, with costs ranging from $116,045 to $648,895. This flexibility allows aspiring franchisees to assess their financial capabilities and choose the best fit for their budget. The initial franchise fee is set at $20,000, making it accessible for those looking to enter the hospitality industry.
Financial Requirements
To qualify for a Rodeway Inn franchise, a cash reserve of $20,000 to $25,000 is required, alongside a net worth of $500,000 to $1,000,000. These financial benchmarks ensure that franchisees possess the necessary capital to support their operations and contribute to the brand's overall success.
Revenue Potential
Average annual revenue per unit for Rodeway Inn stands at $36,750, with a median of $33,760. While the lowest annual revenue recorded is $2,580, the highest reaches $131,040. This wide revenue range provides franchisees with the potential for significant earnings, depending on location and management.
Operating Costs
Franchisees can expect operating expenses to include costs such as marketing and advertising ($20,000), utilities ($30,000), and salaries ($40,000). Overall, the average total annual operating expenses are approximately $116,045, which emphasizes the importance of effective cost management for profitability.
Breakeven and Payback
The breakeven period for a new Rodeway Inn franchise is estimated at 24 months, indicating that franchisees can expect to recover their initial investments within this timeframe. This relatively quick payback period is attractive for potential investors looking for a return on their investment.
Franchise Growth
The Rodeway Inn franchise has seen a slight decline in the number of franchised units, dropping from 528 in 2021 to 472 in 2023. This trend highlights the importance of strategic market positioning and operational excellence for current and prospective franchisees to ensure long-term sustainability and growth.
Frequently Asked Questions
The initial investment for a Rodeway Inn franchise ranges from $116,045 to $648,895, which includes the franchise fee and other startup costs.