Magnuson Franchising is a small hotel franchisor with only 11 units, focusing exclusively on converting existing independent hotels to branded properties. The franchise fee is low at $10,000, but total investment ranges from $175,000-$400,000 for conversion costs. The 8% royalty rate is relatively high for hotel franchising, with a $250 monthly minimum. The system shows growth from 0 units in 2022 to 11 units currently, but provides no financial performance data. Territory protection is minimal, and the franchisor retains extensive control over online distribution channels. The contract terms include automatic renewal but require substantial compliance conditions.
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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
Similar to Magnuson Franchising, LLC in category and investment range