15 frequently asked questions answered with data from the 2024 Franchise Disclosure Document.
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The total initial investment to open a Homewood Suites by Hilton franchise ranges from $20.8M to $32.5M (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 Homewood Suites by Hilton is $100K (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 Homewood Suites 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 Homewood Suites 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 analysisHomewood Suites by Hilton charges a royalty fee of 5.5% 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 Homewood Suites by Hilton franchise is approximately 9.0% of gross sales (2024 FDD). This includes the royalty fee, a 3.5% marketing/advertising fund contribution, a $1260/month technology fee, and other recurring charges.
View full fees analysisHomewood Suites by Hilton has been involved in 4 litigation cases over the past 3 years (2024 FDD). There are currently 2 pending cases. There is at least one class action lawsuit pending.
View full litigation analysisNo, the Homewood Suites by Hilton franchisor has no bankruptcy filings in their disclosure history (2024 FDD).
View full litigation analysisHomewood Suites by Hilton offers protected territory rights to its franchisees (2024 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.
View full territory analysisHomewood Suites by Hilton currently operates 511 locations (2024 FDD) (511 franchised, 0 company-owned). The system grew by 0.6% over the past year. The 3-year compound annual growth rate is 0.8%.
View full growth analysisThe 1-year franchisee turnover rate for Homewood Suites by Hilton is 0.2% (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 analysisThe initial franchise agreement term for Homewood Suites by Hilton is 22 years (2024 FDD). Franchisees can renew 0 times for 0-year periods. The total potential term is 22 years.
View full contract analysisHomewood Suites by Hilton's post-termination non-compete clause restricts former franchisees from operating a competing business for 0 years within 0 miles of the former location (2024 FDD).
View full legal analysisNo, Homewood Suites by Hilton's franchise agreement does not require mandatory arbitration (2024 FDD). Disputes may be resolved through litigation.
View full legal analysisHomewood Suites by Hilton provides 18 hours of initial training over approximately 2 weeks (2024 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisHomewood Suites 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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