15 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
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The total initial investment to open a Howard Johnson franchise ranges from $347K to $11.5M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Howard Johnson is $35K (2025 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 Howard Johnson 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
Yes, a Howard Johnson franchise requires a physical location (2025 FDD). Franchisees will need to lease or purchase commercial real estate, which is a significant component of the total investment.
View full investment analysisHoward Johnson charges a royalty fee of 5.0% of gross sales (2025 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 Howard Johnson franchise is approximately 7.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, a $734/month technology fee, and other recurring charges.
View full fees analysisHoward Johnson has been involved in 8 litigation cases over the past 3 years (2025 FDD). There are currently 2 pending cases. There is at least one class action lawsuit pending.
View full litigation analysisNo, the Howard Johnson franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisHoward Johnson offers protected territory rights to its franchisees (2025 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 analysisHoward Johnson currently operates 139 locations (2025 FDD) (139 franchised, 0 company-owned). The system contracted by 2.8% over the past year. The 3-year compound annual growth rate is -4.4%.
View full growth analysisThe 1-year franchisee turnover rate for Howard Johnson is 7.2% (2025 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 Howard Johnson is 15 years (2025 FDD). The total potential term is 15 years.
View full contract analysisHoward Johnson's post-termination non-compete clause lasts 0 years after termination or expiration (2025 FDD).
View full legal analysisNo, Howard Johnson's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.
View full legal analysisHoward Johnson provides 74 hours of initial training over approximately 1 weeks (2025 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, Howard Johnson provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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