HOWARD JOHNSON Franchise
Cost, fees, owner earnings, closure rate and litigation for a HOWARD JOHNSON franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
HOWARD JOHNSON discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
2023 data: 62 qualified facilities. Avg ADR $114.03, occupancy 56.9%, RevPAR $64.93. 29% met/exceeded avg. CRS contributed 75.5% revenue.
What a HOWARD JOHNSON franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $333,899 – $11,490,271 | Item 7 — franchisor's own low/high estimate |
Royalty 5% GRR, marketing 2%, room sales 1.5%. Mandatory training, PMS fees $4.4k-$21.5k. Multiple ancillary fees.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
HOWARD JOHNSON system size and owner turnover
| Total outlets | 143 |
| Ceased operations | 5 |
| Closure rate | 3.5% of outlets |
5 outlets ceased 2023; -11 net change 2022. System declining.
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 HOWARD JOHNSON worth it? — how it compares to 436 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $333,899 | pricier than 76% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 3.5% of outlets | worse than 65% of peers |
| Disclosed lawsuits | 9 | more litigious than 92% 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 HOWARD JOHNSON
The franchisor's framing: 2023 data: 62 qualified facilities. Avg ADR $114.03, occupancy 56.9%, RevPAR $64.93. 29% m… 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
HOWARD JOHNSON franchise — frequently asked
- How much does a HOWARD JOHNSON franchise cost?
- The FDD lists a total initial investment of about $333,899–$11,490,271, including a $35,000 initial franchise fee.
- How much do HOWARD JOHNSON franchise owners make?
- 2023 data: 62 qualified facilities. Avg ADR $114.03, occupancy 56.9%, RevPAR $64.93. 29% met/exceeded avg. CRS contributed 75.5% revenue. We grade this disclosure C for honesty.
- What are the HOWARD JOHNSON franchise fees?
- HOWARD JOHNSON's FDD discloses a $35,000 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5% GRR, marketing 2%, room sales 1.5%. Mandatory training, PMS fees $4.4k-$21.5k. Multiple ancillary fees.
- What is the HOWARD JOHNSON franchise profit margin?
- HOWARD JOHNSON does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2023 data: 62 qualified facilities. Avg ADR $114.03, occupancy 56.9%, RevPAR $64.93. 29% met/exceeded avg. CRS contributed 75.5% revenue. Recurring fees alone take about 7% 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 HOWARD JOHNSON franchise failure rate?
- 5 outlets ceased 2023; -11 net change 2022. System declining.
- How many HOWARD JOHNSON locations are there?
- HOWARD JOHNSON's FDD reports 143 total outlets, with 5 that ceased operations in the most recent reporting year. Item 20 is where system health shows up before the marketing does.
- Does HOWARD JOHNSON have complaints or lawsuits?
- HOWARD JOHNSON discloses 9 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 HOWARD JOHNSON franchise worth it?
- It depends on the numbers, not the pitch. HOWARD JOHNSON scores C on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 9 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 30831-202403-02 (Clean FDD 2024). FranchiseValidate is independent and not affiliated with HOWARD JOHNSON or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.