16 frequently asked questions answered with data from the 2024 Franchise Disclosure Document.
The total initial investment to open a Canopy by Hilton franchise ranges from $63.9M to $141.5M (2024 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Canopy by Hilton is $85K (2024 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Canopy by Hilton 2024 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a Canopy by Hilton franchise requires a physical location (2024 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisCanopy by Hilton charges a royalty fee of 5.0% of gross sales (2024 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Canopy by Hilton franchise is approximately 9.0% of gross sales (2024 FDD). This includes the royalty fee, a 4.0% marketing/advertising fund contribution, a $1950/month technology fee, and other recurring charges.
View full fees analysisCanopy by Hilton has been involved in 4 litigation cases over the past 3 years (2024 FDD). There are currently 4 pending cases. There is at least one class action lawsuit pending.
View full litigation analysisNo, the Canopy by Hilton franchisor has no bankruptcy filings in their disclosure history (2024 FDD).
View full litigation analysisCanopy by Hilton offers non-exclusive territory rights to its franchisees (2024 FDD). The franchise agreement does not include encroachment protection. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisCanopy by Hilton currently operates 26 locations (2024 FDD) (26 franchised, 0 company-owned). The system grew by 0.0% over the past year. The 3-year compound annual growth rate is 9.1%.
View full growth analysisThe 1-year franchisee turnover rate for Canopy by Hilton is 0.0% (2024 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisCanopy by Hilton does not include an Item 19 financial performance representation in their FDD (2024 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for Canopy by Hilton is 20 years (2024 FDD). The total potential term is 20 years.
View full contract analysisCanopy by Hilton's post-termination non-compete clause lasts 0 years after termination or expiration (2024 FDD).
View full legal analysisNo, Canopy by Hilton's franchise agreement does not require mandatory arbitration (2024 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
View full legal analysisCanopy by Hilton provides 28 hours of initial training (2024 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisCanopy by Hilton does not provide site selection assistance (2024 FDD). Franchisees are responsible for finding and securing their own location. The franchisor also provides technology support and systems.
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