|
Trademark Hotel Collection Franchise ProfileLodging & Leisure > Lodging |
What Are the Initial Investment Requirements for a Trademark Hotel Collection Franchise?
To become a franchisee with Trademark Hotel Collection, you should be prepared for a substantial initial investment that ranges from $216,477 to $17,088,494. This includes a franchise fee of $35,000, along with various startup costs. Additionally, you will need to have a cash reserve of approximately $216,477 to $5,090,238 and a net worth between $500,000 and $1,000,000 to qualify for this opportunity. Understanding these financial requirements is crucial for assessing your readiness to enter the franchise market.
What Are the Ongoing Fees Associated with Trademark Hotel Collection?
Franchisees of Trademark Hotel Collection are required to pay a royalty fee of 5% on their gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts, which can ultimately drive sales and profitability for your hotel. It’s important to factor these fees into your financial projections to ensure you can sustain operations while meeting the brand’s expectations.
What Is the Average Revenue Potential for a Trademark Hotel Collection Franchise?
Franchisees can expect varying revenue levels, with average annual revenue per unit reported at around $1,397,000. The median annual revenue is slightly lower at $99,100, while the highest-performing units can generate up to $1,200,000 in revenue. Understanding these figures can help you gauge the potential financial performance of your franchise and set realistic revenue goals as you plan your operations.
How Long Does It Take to Break Even with a Trademark Hotel Collection Franchise?
The breakeven time for a Trademark Hotel Collection franchise is approximately 12 months, which is relatively quick compared to other franchise models. This rapid return on investment can be appealing for potential franchisees. However, it’s important to consider that the overall investment payback period is around 74 months, meaning you should be prepared for ongoing operational costs and initial losses as you establish your hotel in the market.
Trademark Hotel Collection 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:
Trademark Hotel Collection 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 | 45 | 54 | 64 |
| Net Change YoY | 9 | 10 | |
| Franchised Units | 45 | 54 | 64 |
| Net Change YoY | 9 | 10 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Trademark Hotel Collection franchise offers a range of initial investment options, with costs varying from $216,477 to $17,088,494. This flexibility allows aspiring franchisees to choose a model that aligns with their financial capabilities and business goals. The initial franchise fee is set at $35,000, providing access to a recognized brand and proven operational systems.
Ongoing Fees
Franchisees are required to pay a royalty fee of 5% on gross sales and a marketing fee of 2%. These fees are essential for maintaining brand standards and supporting marketing efforts that drive customer traffic to each location. Understanding these ongoing costs is crucial for effective financial planning and profitability.
Financial Performance
The average annual revenue per unit in the Trademark Hotel Collection is approximately $1,397,000, with a median revenue of $99,100. The revenue ranges from $99,100 to as high as $1,200,000, showcasing the potential for significant earnings. This financial performance data helps franchisees evaluate the viability of their investment and set realistic revenue expectations.
Breakeven and Payback
Franchisees can expect to break even within 12 months of operation, which is a relatively short period in the hospitality industry. The investment payback period is approximately 74 months, allowing franchisees to plan their financial strategies effectively and anticipate when they will begin to see returns on their investment.
Franchise Growth
The Trademark Hotel Collection has shown consistent growth in franchised units, increasing from 45 in 2021 to 64 in 2023. This upward trend indicates a strong market demand and the brand's potential for expansion, making it an attractive option for prospective franchisees looking to enter a growing sector.
Operational Costs
Average running expenses for a Trademark Hotel Collection franchise total around $250,358 annually. Key expenses include insurance, pre-opening wages, and advertising, which are vital for establishing and maintaining a successful operation. Understanding these costs helps franchisees budget effectively and manage their financial performance from the outset.
Frequently Asked Questions
The initial investment for a Trademark Hotel Collection franchise ranges from $216,477 to $17,088,494, depending on various factors like location and size of the property.