MAGNUSON HOTELS & MAGNUSON GRAND

Item 7 lays out the financial entry: $175,000 to $400,000 total investment, kicked off by a modest $10,000 franchise fee—far below many hotel chains demanding seven figures upfront. Ongoing costs include an 8% royalty on gross room revenue, plus a $100-$260 monthly Airbnb connection fee and a $250 minimum monthly invoice to cover shortfalls. No Item 19 means no official revenue or profit benchmarks from franchisor-provided franchisee data, a red flag in hospitality where averages can swing wildly by location and property class; buyers must dig into Item 20 for unverified seller anecdotes or lean on those 24 SBA loans averaging a hefty $1,972,783 each, suggesting lenders see viable scale-up potential in conversions.

System maturity shows promise amid youth: from 9 locations in 2023 to 11 in 2024, a 22% jump per FDD notes, with headquarters in Casper, WY, pushing proprietary systems, central reservations, and third-party marketing. Zero terminations or transfers signal stability so far, but the tiny footprint demands scrutiny on saturation risks and conversion success rates. For a hotel owner eyeing affiliation, cross-check Item 19 absence against SBA trends and growth trajectory to gauge if this lean model delivers the occupancy lift needed to justify fees—request audited property comps before committing.