Howard Johnson is a hotel franchise system that has been experiencing unit decline over the past three years, dropping from 159 units in 2022 to 139 units in 2024. The franchise offers lodging facilities with initial fees of $35,000 and ongoing royalties of 5% of gross room revenue. The system requires significant real estate investment with total costs ranging from approximately $347,000 for conversions to over $11 million for new construction facilities. Notable concerns include the lack of standard renewal rights, declining unit count, and several pending litigation matters including class action suits. The franchise provides protected territories that are individually negotiated and requires substantial owner involvement in hotel management.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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