HomeTowne Studios Franchise
Cost, fees, owner earnings, closure rate and litigation for a HomeTowne Studios franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
HomeTowne Studios discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
2023 performance: 49 affiliate hotels avg. $39.55 RevPAR; 16 franchised avg. $34.52 RevPAR. 45-55% earned/exceeded avg. Limited franchise data; affiliate-weighted representation.
What a HomeTowne Studios franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $30,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $10,411,393 – $12,910,291 | Item 7 — franchisor's own low/high estimate |
App fee $5K, RF $30K+$300/room. Royalty 5.5%, marketing 3%, RediRewards 2%, booking/distribution variable 0-25%.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
HomeTowne Studios system size and owner turnover
| Total outlets | 73 |
| Ceased operations | 3 |
| Terminated by franchisor | 10 |
| Transferred to new owners | 2 |
| Closure rate | 4.1% of outlets |
10 terminations 2023; 3 ceased ops; 13 of 25 franchised outlets failed/ceased since 2021.
From Item 20 of the FDD 2024. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is HomeTowne Studios worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8.5% of sales | about average |
| Startup cost | from $10,411,393 | pricier than 97% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 4.1% of outlets | worse than 68% of peers |
| Disclosed lawsuits | 3 | more litigious than 74% of peers |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a HomeTowne Studios
The franchisor's framing: 2023 performance: 49 affiliate hotels avg. $39.55 RevPAR; 16 franchised avg. $34.52 RevPAR… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
HomeTowne Studios franchise — frequently asked
- How much does a HomeTowne Studios franchise cost?
- The FDD lists a total initial investment of about $10,411,393–$12,910,291, including a $30,000 initial franchise fee.
- How much do HomeTowne Studios franchise owners make?
- 2023 performance: 49 affiliate hotels avg. $39.55 RevPAR; 16 franchised avg. $34.52 RevPAR. 45-55% earned/exceeded avg. Limited franchise data; affiliate-weighted representation. We grade this disclosure C for honesty.
- What are the HomeTowne Studios franchise fees?
- HomeTowne Studios' FDD discloses a $30,000 initial franchise fee, a 5.5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8.5% of gross sales in recurring fees before rent, labor, or debt service. App fee $5K, RF $30K+$300/room. Royalty 5.5%, marketing 3%, RediRewards 2%, booking/distribution variable 0-25%.
- What is the HomeTowne Studios franchise profit margin?
- HomeTowne Studios does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2023 performance: 49 affiliate hotels avg. $39.55 RevPAR; 16 franchised avg. $34.52 RevPAR. 45-55% earned/exceeded avg. Limited franchise data; affiliate-weighted representation. Recurring fees alone take about 8.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the HomeTowne Studios franchise failure rate?
- 10 terminations 2023; 3 ceased ops; 13 of 25 franchised outlets failed/ceased since 2021.
- How many HomeTowne Studios locations are there?
- HomeTowne Studios' FDD reports 73 total outlets, with 3 that ceased operations in the most recent reporting year and 2 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does HomeTowne Studios have complaints or lawsuits?
- HomeTowne Studios discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a HomeTowne Studios franchise worth it?
- It depends on the numbers, not the pitch. HomeTowne Studios scores C on disclosure honesty, carries about 8.5% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
Own a HomeTowne Studios? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare HomeTowne Studios to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 31061-202404-08 (Clean FDD 2024). FranchiseValidate is independent and not affiliated with HomeTowne Studios or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.