Start by identifying which hotel brands are performing well in your target area. Look for gaps in the market—for instance, a high-demand area might lack a budget-friendly option like Boarders Inn & Suites or a mid-scale choice like Cambria Hotels & Suites . 2. Review the Franchise Disclosure Document (FDD)
Hotel franchises are capital-intensive. Low-end builds can average around
Before signing, consider visiting an existing location of the brand to meet the staff and understand operations firsthand. When you are ready to proceed, you will negotiate the , which covers:
: Initial franchise fees (e.g., a flat fee of approximately plus a per-room charge) and ongoing royalty fees.
: Based on your business plan and projected revenue. 4. Negotiate and Sign the Agreement
million, and lenders often require significant liquid capital. Common financing routes include:
