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FranchiseVerdict

How Much Does a Magnuson Grand® or Magnuson Hotels® Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$175K – $400K

Franchise Fee

$10K

Royalty

8.0%

Ad Fund

0.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Magnuson Grand® or Magnuson Hotels® is $10K. 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 Magnuson Grand® or Magnuson Hotels® franchise requires a total investment of $175K – $400K. 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 $150K to $300K.

Ongoing Costs

Beyond the initial investment, Magnuson Grand® or Magnuson Hotels® franchisees pay ongoing fees. The royalty fee is 8.0% of gross sales (Gross Room Revenue). The advertising or brand fund contribution is 0.0% of gross sales.

Net Worth & Liquid Capital Requirements

Magnuson Grand® or Magnuson Hotels® requires working capital of $150K – $300K 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?

Magnuson Grand® or Magnuson Hotels® 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 Magnuson Grand® or Magnuson Hotels®?

SBA Loans Issued

33

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Magnuson Grand® or Magnuson Hotels® has 33 SBA-backed loans on record. The default rate is 0.0%, 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

Talk to current Magnuson Grand® or Magnuson Hotels® franchise owners

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See full Magnuson Grand® or Magnuson Hotels® research

Risk analysis, unit growth, contract terms, and more

Compare Magnuson Grand® or Magnuson Hotels® to similar franchises

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