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FranchiseVerdict

How Much Does a Park Inn by Radisson Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$256K – $1.3M

Franchise Fee

$45K

Royalty

5.5%

Ad Fund

3.3%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Park Inn by Radisson is $45K. 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 Park Inn by Radisson franchise requires a total investment of $256K – $1.3M. 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 $15K to $40K.

Ongoing Costs

Beyond the initial investment, Park Inn by Radisson franchisees pay ongoing fees. The royalty fee is 5.5% of gross sales (Gross Room Revenues). The advertising or brand fund contribution is 3.3% of gross sales. There is also a technology fee of $328.

Net Worth & Liquid Capital Requirements

Park Inn by Radisson requires working capital of $15K – $40K 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?

Park Inn by Radisson 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 Park Inn by Radisson?

SBA Loans Issued

7

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Park Inn by Radisson has 7 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

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