How Much Does a Howard Johnson Franchise Cost?
Data from the 2026 Franchise Disclosure Document
Investment Summary
Total Investment
$350K – $11.9M
Franchise Fee
$35K
Royalty
5.0%
Ad Fund
3.5%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Howard Johnson is $35K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Howard Johnson franchise requires a total investment of $350K – $11.9M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $130K to $196K.
Ongoing Costs
Beyond the initial investment, Howard Johnson franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 3.5% of gross sales. There is also a technology fee of $734.
Net Worth & Liquid Capital Requirements
Howard Johnson requires working capital of $130K – $196K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
Howard Johnson does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View Howard Johnson?
SBA Loans Issued
201
Default Rate
11.9%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Howard Johnson has 201 SBA-backed loans on record. The default rate is 11.9%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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