Buying a Hampton Inn Franchise
Top 20 Most Popular Franchises: Hampton Inn
Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 1,500 franchises and knows the key facts and data that signal a successful franchiseA franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate.... system. Upon extensive review using a number of internet research tools, our team was able to compile a short list of the “Top 20 Most Popular Franchises in the United States.” In the article below, we review the business model proposed by one of these 20 franchises: Hampton Inn, as well as the requirements that encompass its franchise application process.
About Hampton Inn
Hampton Inn was founded in 1984 by the Promus Hotel Corporation in Memphis, Tennessee. With the intent of inaugurating the “mid-price national hotel” market, Hampton Inn was rapidly demanded by many guests given not only its attractive pricing, but also its luxury features for the time, such as a continental breakfast offering for all guests and complimentary phone call services. This growing demand soon led the company to be acquired by Hilton Worldwide, and today the company currently has over 2,430 hotels across 20 countries totaling a number of over 250,000 rooms worldwide. The company is currently headquartered in McLean, Virginia and is led by the Chief Executive Officer and President of Hilton Worldwide, Christopher J Nassetta, that has been serving in this position since 2007
How Much Does a Hampton Inn Franchise Cost?
The first factor to consider when interested in investing in a Hampton Inn franchise are the financial requirements accompanying this investment opportunity. The total investment amount to establish a Hampton Inn franchise ranges from $7,662,800-$20,306,500 including the company’s franchise fee that is $75,00 and excluding any land or lease costs. Once the store has been built and operations begin, franchisees are then expected to pay the parent company a royalty fee of 6% on gross salesThe total amount in dollars made in the business before expenses are deducted. See also Gross Revenue...., and an additional marketing fee of 4% on gross sales in exchange for the marketing services provided by the franchisor. The franchisor is particularly looking for experienced candidates who are truly driven to own a Hampton Inn franchise. Additionally, the minimum net worthValue of all the non-financial and financial assets of a business buyer. There is usually a minimum net worth requirement to qualify as a franchisee and for bank financing.... required to own a Hampton Inn franchise ranges is of at least $100,000 and the applicant must have liquid assets totaling at least $50,000.
Hampton Inn in Numbers
When evaluating a Hampton Inn franchise’s potential for growth one does not need to go beyond Hilton Hotel’s reputation to better understand the prospect for success of the opportunity at hand. According to the Business Travel News, the Hotel industry had a 2.1% growth in 2019, and even with the current pandemic crisis – economists expect a 1.9% growth in the industry for the year of 2020. Looking at the franchise’s internal performance, although limited data was made available on the financial status of the company’s franchisees, it was found that only 9 franchises terminated their contracts in 2018 – an insignificant value when contrasted with the total amount of franchises under Hampton Inn’s franchise system.Moving forward, Hampton Inn is looking to establish new units across the country as well as worldwide, as the chain spreads its comfort and safety across different cultures.
Summary
Investing in a Hampton Inn franchise is an attractive opportunity, especially for individuals who are business-driven and enjoy the hospitality industry. As seen, the Hotel industry is constantly growing and expanding specifically because traveling has more than ever become a huge part of our society’s daily lives and routines. That said, if you are an individual with previous business management experience and are willing to invest an amount ranging from $7,662,800-$20,306,500 or more, Hampton Inn is the right franchise for you!