Magnuson Grand® or Magnuson Hotels®Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Magnuson Grand® or Magnuson Hotels® franchise requires a total initial investment of $175K – $400K, including a $10K franchise fee and an ongoing 8.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $175K – $400K
- 8th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 8.0%
- 48th pct Lodging
- Units
- 9
- 17th pct Lodging
- SBA default
- N/A
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
Bottom line
- Total investment $175K – $400K including a $10K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 33/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Magnuson Franchising, LLC
- Parent company
- Magnuson Company, L.L.C.
- CEO title
- Chief Executive Officer
- Adnan Malik
- CEO experience
- 5 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- WA
- HQ
- 312 W 2nd St., Unit A4238, Casper WY, 82601
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $28K
- vs $173K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate independent or converted hotel properties under the Magnuson Grand/Magnuson Hotels brand, managing daily operations including front desk, housekeeping, maintenance, and guest services. They pay 8% royalty on room revenue while maintaining brand standards, leveraging Magnuson's reservation system and marketing support. Success depends entirely on local market conditions, property quality, and operational execution with minimal franchisor protection or exclusive territory rights.
- CEO
- Adnan Malik
- Founded
- 2021
- FDD year
- 2024
- States available
- 7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $150K | $300K |
| Equipment, build-out, other | $15K | $90K |
| Total initial investment | $175K | $400K |
Source: Magnuson Grand® or Magnuson Hotels® 2024 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
- $175K – $400K
- Better than avg vs category
- Liquid capital req'd
- $150K – $300K
- Better than avg vs category
- Franchise fee
- $10K – $10K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Room Revenue · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Magnuson Grand® or Magnuson Hotels® Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 5
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 10.0%
- Net growth (yr3)
- +125.0%
- Net unit change last year
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 33
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Regulatory history of disclosure violations, minimal financial transparency, underdeveloped franchise system with only 9 units, and lack of territory protection create substantial risk for a six-figure investment.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $2,500
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the U.S. Bankruptcy Code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtain
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 33 / 100 rating
- 01MINOR2020 regulatory violation by franchisor for selling franchises without disclosure documents or registration — indicates compliance failures and potential deceptive practices
- 02MINORNo average revenue or net income disclosure (Item 19) — impossible to validate ROI claims or assess realistic profitability for a $175k-$400k investment
- 03MINORTiny system of only 9 units with 125% YoY growth — suggests either recent launch (unproven model) or previous contraction; insufficient peer data for due diligence
- 04MINORNo protected territory — franchisee investment vulnerable to direct cannibalization by franchisor or competing franchisees in same market
- 05MED5-year term is relatively short for hotel franchise requiring significant buildout; limited runway to recoup capital investment
- 06MINOR8% royalty on gross room revenue is high-end for budget/mid-scale hotels; combined with unknown profitability metrics, margin sustainability is unclear
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 |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Casper, Wyoming |
| Jury trial waiver | Yes |
| Governing law | Wyoming |
| Litigation count | 1 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
- POS system
- Magnuson Cloud PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Magnuson Cloud PMS
Item 20 · call current owners
Franchisee Contacts
9 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Magnuson Grand® or Magnuson Hotels® · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Magnuson Grand® or Magnuson Hotels® franchise?
The total investment to open a Magnuson Grand® or Magnuson Hotels® franchise ranges from $175K – $400K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Magnuson Grand® or Magnuson Hotels® franchise owners earn?
Magnuson Grand® or Magnuson Hotels® 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 Magnuson Grand® or Magnuson Hotels®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Magnuson Grand® or Magnuson Hotels® (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Magnuson Grand® or Magnuson Hotels® franchise locations are there?
As of their most recent FDD filing, Magnuson Grand® or Magnuson Hotels® has 9 total units in the United States, including 0 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is Magnuson Grand® or Magnuson Hotels® a good franchise to buy?
FranchiseVerdict rates Magnuson Grand® or Magnuson Hotels® as a A-grade franchise with a risk score of 33 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.