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Rodeway Inn Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
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.
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.
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.
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.
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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 |
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.
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.
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.
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.
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.
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.