General

Industry

Travel and Hospitality

Category

Hotel

SBA Identifier

S3146

Year of Founding

2000

Fees

Marketing Fee

2%

Royalty Fee

4.5%

Franchise Fee

$35,000-$35,000

Investment Range

$2.66M-$15.32M

Location units

Total U.S. Locations

6

U.S. Franchised Units

6

U.S. Corporate Units

0

Headquarters (City)

Minneapolis

Other

Item 19 - Franchise Financials

Yes

Financing Availability

-

Started Offering Franchises

2000

Issuance of FDD Data

03/30/2021

What to know about Park Inn franchise?

The franchise offered is for the right to operate a hotel that provides lodging services to the public under the names "Park Inn" or "Park Inn by Radisson" (collectively referred to in this document as "Park Inn") or "Park Inn by Radisson Residences" (referred to in this document as "Park Inn Residences").

Park Inn is based in Minneapolis, MN. Scroll down to learn more!

How much does a Park Inn franchise cost?

Are you wondering how much is a Park Inn franchise? Before starting a Park Inn franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Park Inn franchise is $2,662,774 and can go all the way up to $15,317,727. Keep in mind, you should also allocate additional funds to live off of while the Park Inn business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Park Inn franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Park Inn business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Park Inn franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Park Inn. Hotels to the Hotel, Outdoor Travel and Hospitality industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2018 13 0 1 12
2019 12 0 6 6
2020 6 1 1 6

Additional Details

How much does a Park Inn franchise owner make?

Park Inn franchise earnings and revenue can vary significantly from one franchisee to another.
The Park Inn franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Park Inn discloses financials at the unit level. In other words, they show how much Park Inn franchisees made in the past. Through analyzing this information available in the metrics tab, it can serve as a good basis to further explore the opportunity or not.

At Vetted Biz, we advise you to speak with 5 to 10 franchisees to understand how much money they are making from the Park Inn franchise. Roughly 60% of franchises disclose financials and it makes the process easier when filtering potential franchise opportunities like Park Inn. Don’t just speak to existing franchisees, call franchisees who have recently left the system and try to find out how much those Park Inn owners were making.

Visit the Park Inn metrics tab to explore the financials for this business.

What is the Park Inn franchise fee?

Owning a Park Inn franchise requires 4.5% royalty fee and 2% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Park Inn Franchise Disclosure Document

Keep in mind, there is also an initial Park Inn franchise fee of $35,000 that is included in the initial investment amount of $2,662,774 to $15,317,727. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Park Inn franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Park Inn franchise fee of $35,000.

Visit the Park Inn metrics tab to explore the financials for this business, royalty and marketing fees compare to other Travel and Hospitality franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Park Inn founded?

Park Inn started offering franchises in 2000. Park Inn was founded 22 years ago in 2000.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Park Inn locations are in the U.S.?

As of 2021, there were 6 locations across the U.S. There are also 0 corporate locations. Most Travel and Hospitality franchises like Park Inn have more franchised locations than corporate locations.

How many Park Inn franchises opened over the past few years?

Over the prior 3 years we have data for, Park Inn has opened 1 outlets throughout the U.S. Visit the Park Inn metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

How many Park Inn franchises closed over the past few years?

Over the prior 3 years we have data for, Park Inn has closed 8 outlets throughout the U.S

Visit the Park Inn metrics tab to explore how the openings compare to other Travel and Hospitality franchises.

Is Park Inn growing? Are they opening more locations than they are closing?

The net unit growth rate for Park Inn over the past 3 years is -54%. Over the last year we have data for, Park Inn had a net unit growth rate of 0%.

Without a comparison, this number doesn’t mean much. Compare how the Park Inn growth rate compares to 2,000+ other franchises and Industry franchises like Park Inn. More info in the Park Inn metrics tab.

Is Park Inn franchise eligible for an SBA Loan?

Park Inn is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Park Inn franchise was assigned the SBA Franchise ID of S3146 on 05/29/2018. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Park Inn that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Park Inn a franchise in the United States?

According to the SBA, Park Inn meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Park Inn provides you with an FDD if you are in discussion to buy a Park Inn.

What is the Park Inn Franchise for Sale Rate?

The Park Inn systemwide health and franchisee satisfaction can be measured by the Park Innfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Park Inn franchise for sale rate over the past 3 years is 33%. Over the last year we have data for, Park Inn had a franchise for sale rate of 0%.

Without a comparison, this number doesn’t mean much. Compare how the Park Inn franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Park Inn. More info in the Park Inn metrics tab.

What is the Park Inn Franchise Failure Rate?

Park Inn franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Park Inn failure rate over the past 3 years is 133%. Over the last year we have data for, Park Inn had a franchise failure rate of 17%.

Without a comparison, this number doesn’t mean much. Compare how the Park Inn franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Park Inn. More info in the Park Inn metrics tab.

How can I find out more details on Park Inn franchise?

Visit the Park Inn metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Park Inn

$8,990,251

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Park Inn

4.5%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Park Inn

$35,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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General

Industry

Travel and Hospitality

Category

Hotel

SBA Identifier

S3146

Year of Founding

2000

Fees

Marketing Fee

2%

Royalty Fee

4.5%

Franchise Fee

$35,000-$35,000

Investment Range

$2.66M-$15.32M

Location units

Total U.S. Locations

6

U.S. Franchised Units

6

U.S. Corporate Units

0

Headquarters (City)

Minneapolis

Other

Item 19 - Franchise Financials

Yes

Financing Availability

-

Started Offering Franchises

2000

Issuance of FDD Data

03/30/2021

Detailed Franchise metrics for Park Inn

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Park Inn below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Growth Rate

The percentage change of total franchise units from one year to the next by franchisor.

 

1 year

3 years

Park Inn

0%

-54%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Park Inn

11%

33%

Industry median

All franchises median

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Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Park Inn

22%

133%

Industry median

All franchises median

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Business details

Company Name

www.radissonhotelsamericas.com/parkinn

Business email

**********@******.com

Mailing address

701 Carlson Parkway, Suite 300, MS 4001

State headquarters

Minnesota

Owner Name

Park Inn

Phone

+1 (000) 0********00

City

Minneapolis

Zip code

55305-8254
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