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HOWARD JOHNSON
Howard Johnson International, Inc. offers franchises for Howard Johnson branded guest lodging facilities that provide overnight accommodations, related services such as complimentary breakfast items, coffee, high-speed internet, swimming pools, fitness rooms, and access to the Wyndham Rewards loyalty program. The brand primarily operates in the economy segment in North America and upper mid-scale to luxury properties internationally, targeting families and leisure travelers. Franchisees operate under the franchisor's system without the franchisor owning or managing any facilities.
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Franchise Costs
5% royalty + 2% ad fund + $734-$1,050/mo PMS fee
Financial Performance
Item 19 Financial Performance
Data Based On: 57 Qualified Chain Facilities (franchised outlets) for the period from January 1, 2024 through December 31, 2024, that passed their most recent quality assurance inspection or had yet to receive a quality assurance inspection prior to December 31, 2024, and achieved a 'Comparable Social Review Score'.
Extracted Item 19 Section
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Unlock financial performance dataHOWARD JOHNSON Franchise Analysis
What happens when a classic American hotel brand meets modern franchising pressures? Howard Johnson, under Wyndham's umbrella, teases a mixed bag in its 2025 FDD—Item 19 financial performance data hints at economy-segment realities, while SBA loan volumes suggest franchisees are betting big. Does this setup promise steady bookings from families, or expose cracks in a shrinking network?
Item 7 pegs total investment at $6,681,950 to $11,539,776 for a typical 100-200 room property, dwarfing many hospitality peers due to real estate and buildout demands. Upfront franchise fee hits $35,000, followed by 5% royalties on room revenue, 2% brand fund, and $734-$1,050 monthly PMS fees—stacking up higher than some mid-tier hotels but aligned with Wyndham's ecosystem perks like Wyndham Rewards access. Item 19 discloses median gross sales around $3.2M for mature units (per 2024 data), implying 15-20% operating margins after fees if occupancy holds 65%+, though economy branding caps upside versus upscale siblings.
System metrics raise flags: 143 locations in 2023 shrank to 139 in 2024 (-3%), with 10 terminations signaling operational strains amid post-pandemic shifts. Yet 14 projected new units and 75 SBA loans (avg $2.37M) show lender confidence, default rates below category norms at ~5%. Litigation clusters around terminations and fee disputes—mostly franchisor wins—underscore strict enforcement. For deep-pocketed operators eyeing Wyndham's pipeline, it's viable; bootstrappers face brutal capital hurdles and contraction risks.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How HOWARD JOHNSON Compares
Key Insights
- One of the lowest SBA loan default rates in Hotels
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
HOWARD JOHNSON Current | $6.7M – $11.5M | $35K | 5.0% | 139 |
| SUPER 8 | $4.7M – $6.9M | $25K | 5.5% | 1,375 |
| DAYS INN, DAYS HOTEL AND DAYS INN & SUITES | $7.6M – $9.4M | $35K | 5.5% | 1,235 |
| LA QUINTA INN & SUITES | $12.8M – $17.2M | $55K | 5.5% | 884 |
| RED ROOF PLUS AND SUITES | $7.3M – $8.9M | $27K | 5.0% | 596 |
| BAYMONT INN & BAYMONT INN & SUITES | $7.6M – $10.5M | $26K | 5.0% | 547 |
Hotels Average 34 franchises | $8.7M – $22.2M | $48K | 5.3% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 34 Hotels franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+28 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for HOWARD JOHNSON franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
75 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
154 franchisee contacts on file from official FDD filings.
154 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Primarily termination disputes and fee collection matters.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a HOWARD JOHNSON franchise ranges from $6,681,950 to $11,539,776. This includes a franchise fee of $35,000. Ongoing royalty fees are 5.0% of gross sales.
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