KoaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A KOA franchise requires a total initial investment of $109K – $16.4M, including a $45K franchise fee and an ongoing 8.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 39 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $109K – $16.4M
- 6th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 8.0%
- 48th pct Lodging
- Units
- 478
- 47th pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 39 SBA loans charged off, well below the 16% franchise average.
Franchising since 1963. Systems this mature have refined operations and brand recognition.
Franchised units fell from 427 to 426 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $109K – $16.4M including a $45K franchise fee, 8.0% ongoing royalty.
- Item 19 discloses "Average Annual Registration Revenue By Site Class" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 7/100. SBA loan charge-off rate of 0.0% across 39 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Item 19 reports "Average Annual Registration Revenue By Site Class" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Kampgrounds of America, Inc.
- Parent company
- KOAH, Inc.
- Incorporated in
- MT
- HQ
- 1205 N. Transtech Way, Billings, MT 59102
- Auditor
- Eide Bailly LLP
- Audited financials
- Franchisor revenue
- $184.6M
- vs $190.0M prior year
Affiliated brands
- Kampgrounds of America
Other brands the franchisor or its parent operates (Item 1).
Overview
About
KOA franchisees operate campgrounds and RV parks, managing customer registrations, site maintenance, amenities (restrooms, laundry, Wi-Fi), and seasonal staffing. Day-to-day responsibilities include guest services, ground upkeep, vendor relations, and regulatory compliance. Revenue derives from nightly campsite rentals and ancillary services (merchandise, fuel, activities).
- CEO
- Toby L. O’Rourke
- Headquarters
- MT
- Founded
- 1960
- FDD year
- 2025
- States available
- 46
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $16K | $116K |
| Equipment, build-out, other | $49K | $16.3M |
| Total initial investment | $109K | $16.4M |
Source: KOA 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $109K – $16.4M
- Better than avg vs category
- Liquid capital req'd
- $16K – $116K
- Better than avg vs category
- Franchise fee
- $15K – $45K
- Better than avg vs category
- Royalty
- 8.0%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $8K |
| Inventory (initial) | $3K – $30K |
| Total fee load | 10.0% of rev |
Financial Performance
This brand's FDD disclosed "Average Annual Registration Revenue By Site Class" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Koa Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 478
- Opened
- 10
- Last reporting year
- Closed
- 15
- Turnover rate
- 3.1%
- Company-owned
- 51
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (yr3)
- -1.4%
- Net unit change last year
- 3-yr CAGR
- -0.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 10
- Closed (3yr)
- 15
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 14
- Transfers (3yr)
- 20
- Reacquired (3yr)
- 7
- Franchisor bought back
- Projected new
- 24
- Franchisor's next-year forecast
- Transfer rate
- 4.1%
- Owners selling to other franchisees
- Termination rate
- 3.1%
- Franchisor-initiated terminations
- Ceased ops
- 3.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 32 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- New York
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 39
- Loan volume
- $43.5M
- Median loan
- $1.1M
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 39 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
KOA presents moderate-to-cautious risk due to shrinking unit count, missing financial transparency, IP litigation, and royalty structure that penalizes lower-performing locations.
Litigation (Item 3)
2 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $150,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Eide Bailly LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 7 / 100 rating
- 01MINORUnit count declining 1.4% YoY (478 units) suggests system contraction and potential market saturation
- 02MEDNo Item 19 financial disclosure (Avg Revenue/Net Income not disclosed) prevents meaningful ROI validation
- 03HIGHActive litigation over intellectual property use indicates brand management/compliance issues
- 04MINORExtreme investment range ($109K-$16.4M) suggests vastly different business models with unclear comparability
- 05MINOR8% royalty on gross receipts is high for hospitality; unprofitable units pay royalties on total registrations regardless of net income
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Montana |
| Litigation count | 1 |
View Item 3 litigation summary
2 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 12 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- KampSight/K2
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: KampSight/K2
Item 20 · call current owners
Franchisee Contacts
138 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KOA · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KOA franchise?
The total investment to open a KOA franchise ranges from $109K – $16.4M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KOA franchise owners earn?
KOA does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is KOA's franchise failure rate?
Based on SBA 7(a) loan data, KOA has a charge-off rate of 0.0% across 39 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many KOA franchise locations are there?
As of their most recent FDD filing, KOA has 478 total units in the United States, including 427 franchised units and 51 company-owned units. 10 new units were opened in the latest reporting year.
Is KOA a good franchise to buy?
FranchiseVerdict rates KOA as a A-grade franchise with a risk score of 7 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.