--- title: "Howard Johnson Franchise: Cost, FDD Analysis & Review" description: "Explore the Howard Johnson franchise. Investment: $4.8M-$8.7M. 145 locations. Grade: c. Financial performance disclosed. Hotels, Motels & Lodging Brands." url: "https://www.franchisegrade.com/best-franchises/brand/howard-johnson" canonical: "https://www.franchisegrade.com/best-franchises/brand/howard-johnson" markdown_url: "https://www.franchisegrade.com/best-franchises/brand/howard-johnson.md" type: "FranchiseBrand" brand: "Howard Johnson" sector: "Real Estate & Lodging" category: "Hotels, Motels & Lodging Brands" investment_low: "4759239" investment_high: "8731136" total_units: "211" grade: "C" operating_model: "Semi-Absentee | Multi-Unit | Passive" --- # Howard Johnson Franchise: Cost, FDD Analysis & Review Explore the Howard Johnson franchise. Investment: $4.8M-$8.7M. 145 locations. Grade: c. Financial performance disclosed. Hotels, Motels & Lodging Brands. ## At a glance - **Brand:** Howard Johnson - **Sector:** Real Estate & Lodging - **Category:** Hotels, Motels & Lodging Brands - **Total initial investment:** $4,759,239 – $8,731,136 - **Total units (FDD Item 20):** 211 - **FranchiseGrade grade:** C - **Operating model:** Semi-Absentee | Multi-Unit | Passive - **States with locations:** AL, AZ, AR, CA, CO, CT, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MS, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, WA, WV, WI, WY ## Howard Johnson — franchise facts ### What is the total initial investment required to open a Howard Johnson franchise? Total investment ranges from $4.8 million to $8.7 million, reflecting the significant real estate and construction costs typical of hotel franchises. This includes land acquisition, building development, furnishings, and initial operating capital required to launch a full-service property. ### What is the initial franchise fee for Howard Johnson, and what does it cover? The franchise fee is $35,000, a reasonable entry cost for a hotel franchise with nationwide brand recognition and protected territory rights. ### What ongoing fees, royalties, or required contributions do Howard Johnson franchisees pay? Franchisees pay a 4.5% royalty on gross room revenue, plus a 2% advertising fund contribution, and technology fees of $1,317 annually to support brand operations and marketing. ### What financial requirements must candidates meet to qualify for a Howard Johnson franchise? Investors need substantial capital to cover the $4.8 million to $8.7 million total investment, including real estate acquisition and development costs. Most lenders require significant net worth and liquidity reserves for hotel franchise financing. ### Are financing options or third-party funding programs available for Howard Johnson franchisees? Hotel franchises typically qualify for SBA loans, commercial real estate financing, and conventional hospitality lending from banks familiar with lodging development. Franchisees should consult with hospitality-focused lenders about available financing structures. ### What initial training does Howard Johnson provide to new franchise owners? The franchise provides 23 hours of comprehensive training, including 22 hours in classroom instruction and 1 hour of on-the-job training at a company facility or operating location. Training covers operations, guest services, housekeeping, front desk procedures, and management systems. ### What ongoing support and resources does Howard Johnson offer after opening? Franchisees receive continuous operational support, marketing resources, technology updates, and access to the brand's national systems. The company provides guidance on property management, revenue optimization, and compliance with brand standards. ### Does Howard Johnson assist with real estate and site selection for new locations? The franchise typically provides guidance on site selection criteria and market analysis for lodging properties. Franchisees work with the franchisor to identify locations meeting brand specifications within their protected territory. ### What does the day-to-day role of a franchise owner look like with Howard Johnson? Hotel owners manage daily operations including guest services, staff supervision, housekeeping, front desk, and maintenance. Most successful franchisees hire a general manager to oversee property operations while maintaining strategic oversight. ### Can Howard Johnson be operated as an owner-operator or semi-absentee franchise? The hotel model supports semi-absentee ownership through a professional on-site management structure, though owners typically remain actively involved in strategic decisions. Hiring an experienced general manager allows owners to manage multiple properties or focus on other business interests. ### What type of lifestyle and time commitment should owners expect with Howard Johnson? Hotel ownership offers stable recurring revenue but requires significant upfront capital and ongoing property management. This model suits investors seeking a long-term, asset-based business rather than a lifestyle or part-time venture. ### What territories or markets are currently available for Howard Johnson franchise ownership? The franchise offers protected geographic territories to minimize competition among franchisees. Territory size and availability depend on local market conditions and the franchisor's development strategy in your desired region. ### Does Howard Johnson offer multi-unit ownership or expansion opportunities? Experienced franchisees may have the ability to develop multiple properties within or adjacent to their territories, subject to franchisor approval and demonstrated operational success. ### Are area development or master franchise opportunities available with Howard Johnson? Multi-unit developers can negotiate area development agreements for developing multiple locations across larger territories. This structure benefits serious investors committed to expanding the brand presence in their markets. ### How does Howard Johnson approach unit-level profitability and financial performance? Hotel profitability depends heavily on occupancy rates, average daily rates, and operational efficiency. The 4.5% royalty rate is competitive, allowing franchisees to retain most revenue after fees and operating costs. ### What sets Howard Johnson apart from competitors in its market segment? The brand offers 30+ years of franchise experience, a nationwide presence across 40+ states, and protected territories that differentiate it from independent hotels. The 20-year term demonstrates the franchisor's long-term commitment to franchisee success and brand stability. ## Research this brand - Full profile: https://www.franchisegrade.com/best-franchises/brand/howard-johnson - Compare it side by side: https://www.franchisegrade.com/compare - Check affordability against your capital: https://www.franchisegrade.com/affordability-calculator - Franchise terms used above: https://www.franchisegrade.com/tools/franchise-glossary --- *Source: [FranchiseGrade](https://www.franchisegrade.com) — independent, FDD-derived franchise research.* *Cite this page as: https://www.franchisegrade.com/best-franchises/brand/howard-johnson* *Training, indexing and quotation are permitted — please attribute and link to the source URL above. Full-text reproduction of the whole page is not. Licensing: privacy@franchisegrade.com*