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Hotel franchisors have become key players in the modern hospitality industry, providing numerous opportunities for newcomers and experienced professionals alike. And with the industry constantly changing, more people are opting for franchising as a reliable route to success in the&nbsp;<a href="https://www.linkedin.com/pulse/hospitality-market-growth-trends/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">booming hospitality market</a>, leveraging established brands and comprehensive support systems.&nbsp;In this guide to hotel franchising, we'll take a closer look at how the process works and what you can expect in terms of costs. We’ll also provide you with a list of hotel brands to consider.&nbsp;<h3>What Is Hotel Franchising?</h3>Hotel franchising is a business model where a hotel brand (franchisor) grants the rights to operate a hotel under its name and business model to a third party (franchisee). In exchange for using the brand name and receiving ongoing support and guidance, the franchisee pays initial and ongoing franchise fees to the franchisor. This arrangement allows aspiring hotel owners to tap into an established brand and operational framework, reducing some of the risks associated with starting a new business.<h3>Understanding the Costs of Hotel Franchising</h3>Entering into a hotel franchise agreement involves a substantial financial commitment. And depending on which brand you choose, it can cost upwards of millions of dollars — on the low end.&nbsp;Here's a breakdown of the typical costs associated with hotel franchising:<ul><li>Initial Franchise Fee:&nbsp;This fee is paid to the franchisor for the privilege of using its brand name and operational framework. The amount varies depending on the hotel brand, and can range from tens of thousands to hundreds of thousands of dollars.</li><li>Initial Investment:&nbsp;The initial investment encompasses all the capital required to establish and operate the hotel franchise. This includes expenses such as property acquisition or lease, construction or renovation, equipment purchase and furnishings. It also includes the working capital required to cover initial operational expenses.</li><li>Ongoing Fees: Franchisees are obligated to pay ongoing fees to the franchisor throughout the duration of the franchise agreement. These fees may include royalties based on revenue generated by the hotel, marketing fees to support brand promotion, and additional charges for ongoing support services provided by the franchisor.</li><li>Operating Expenses: In addition to the initial investment and franchise fees, franchisees are responsible for covering the day-to-day operating expenses of the hotel. This includes payroll for staff members, utilities, maintenance and repairs, as well as marketing initiatives to attract guests to the hotel.</li></ul><h3>Who Are the Major Players in the Hotel Franchising Industry?</h3>Hotel franchise brands range from budget-friendly accommodations to some of the most luxurious resorts around. Many hotel brands don’t provide their franchise development data online; fortunately,&nbsp;<a href="https://www.entrepreneur.com/franchise500?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Entrepreneur</a> has gathered some important information you may need about these five major players:&nbsp;<a href="https://development.wyndhamhotels.com/brand/super-8-by-wyndham/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Super 8 by Wyndham</a><ul><li>Investment Range: $232,000 - $5.7 million</li><li>Unit Count: 2,690+</li></ul>Known for its budget-friendly accommodations, Super 8 is a cost-effective franchise option with growth potential both domestically and internationally.<a href="https://g6hospitality.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Motel 6</a><ul><li>Investment Range: $236,000 - $7.9 million</li><li>Unit Count: 1,230+</li></ul>Despite its budget-friendly reputation, Motel 6 boasts strong brand recognition and a track record of success, making it an attractive franchise opportunity.<a href="https://www.entrepreneur.com/franchises/directory/hampton-by-hilton/284276?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Hampton by Hilton</a><ul><li>Investment Range:&nbsp;$12.8 million - $24.1 million&nbsp;</li><li>Unit Count: 2,910+</li></ul>Combining quality and affordability, Hampton by Hilton is a popular choice for franchisees seeking a balance between budget and quality.<a href="https://www.entrepreneur.com/franchises/directory/holiday-inn-and-holiday-inn-express/335297?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">Holiday Inn and Holiday Inn Express</a><ul><li>Investment Range: $11 million - $23.3 million</li><li>Unit Count: 4,300+</li></ul>Holiday Inn and Holiday Inn Express are among the world's most recognized hotel brands. With four tiers ranging from midscale to luxury, they prioritize value and dependability in their offerings.<a href="https://www.entrepreneur.com/franchises/directory/doubletree-by-hilton/284273?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">DoubleTree by Hilton</a><ul><li>Investment Range:&nbsp;$28 million - $97.6 million</li><li>Unit Count:&nbsp;500+</li></ul>Founded in 1969, DoubleTree began franchising in 1989. It quickly caught the attention of Hilton Hotels, which later merged with the brand. DoubleTree has since expanded to over 500 units globally.While the initial investment and ongoing expenses can be substantial, the potential for success and profitability is significant, particularly when aligned with the right brand and market demand. By carefully evaluating your options, conducting thorough research, and seeking professional guidance, you can embark on a rewarding journey as a hotel franchisee.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=hotel-franchising-the-ultimate-guide-2725340" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Hotel Franchising: A Comprehensive Guide

1851 Franchise

Hotel franchising is a great gateway into the lucrative hospitality market. In this article, we look at how it works, the costs involved, and some of the major players in the industry.

Hotel Franchising: The Ultimate Guide

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Jollibee

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New York Business Journal: Jollibee Opens Midtown Restaurant, Eyes NYC Growth for Filipino Chicken Chain

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Mister Sparky Electric

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Powering Growth: How Mister Sparky Franchisees Use ServiceTitan to Scale Electrical Operations

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TruBlue Home Service Ally

TruBlue’s 2026 Annual Conference Celebrates Growth, Purpose and Top-Performing Franchisees

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DoodyCalls

DoodyCalls Ranks on Entrepreneur’s 2026 Franchise 500®

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Children's Lighthouse

How AI Is Reshaping the Job Market and Why It Can’t Replace Early Childhood Education

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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The Penny Shortage Is Creating a New Risk for QSR Franchise Systems - 1851 Franchise

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems

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Private equity firm&nbsp;<a href="https://skylineinv.com/">Skyline Investors</a> has acquired rent-to-own franchisor&nbsp;<a href="https://buddysfranchising.com/">Buddy’s Home Furnishings</a> in a deal that signals continued investor confidence in franchise-based retail models, according to a&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">report from Retail TouchPoints</a>. The transaction, announced Feb. 4, brings new ownership to a system of more than 220 locations across 18 states and Guam, positioning Buddy’s for its next phase of growth within the franchising sector.Financial terms of the deal were not disclosed, but the acquisition reflects a broader trend of private equity firms targeting established franchise brands with recurring revenue and strong unit-level performance. For Buddy’s, which specializes in furniture, electronics and appliances, the partnership is intended to strengthen its operational platform and expand long-term opportunities for franchisees.“This is an exciting new chapter for Buddy’s,” CEO&nbsp;<a href="https://www.linkedin.com/in/michael-bennett-cfe-a9309538/">Michael Bennett</a> said in a statement. “Skyline brings a collaborative mindset that our franchisees and customers will feel immediately. We’re not just changing ownership; we’re gaining committed partners who understand our business, value our franchise network and are ready to invest in our collective success.”Skyline structured the investment alongside&nbsp;<a href="https://www.linkedin.com/in/jeffrey-jaeger-bb48b43/">Jeffrey Jaeger</a> and&nbsp;<a href="https://www.linkedin.com/in/scott-alter-7aa99311/">Scott Alter</a>, co-founders and principals of affordable housing developer&nbsp;<a href="https://standard-communities.com/">Standard Communities</a>. Their involvement adds financial and strategic expertise aimed at supporting capital formation, balance sheet management and disciplined expansion.For franchise operators, the deal offers potential benefits in the form of increased corporate resources, enhanced systems and renewed investment in technology and infrastructure. Private equity-backed franchisors often prioritize scalability, data-driven decision-making and operational consistency, all of which can influence franchisee performance and long-term brand stability.Skyline brings prior experience in the rent-to-own space, including investments in&nbsp;<a href="https://www.gomajik.com/">Majik Rent-to-Own</a>, which may help accelerate Buddy’s development efforts and refine its franchise support model. Company leaders say the firm’s approach is centered on partnership rather than short-term returns.“Buddy’s represents exactly the type of platform opportunity we’re built to support,”&nbsp;<a href="https://www.linkedin.com/in/kevintom/">Kevin Tom</a>, founder and managing partner at Skyline Investors, said in a statement. “With Buddy’s proven brand and strong franchise network, there’s a clear runway for growth.”As private equity continues to expand its footprint in franchising, deals like this highlight the sector’s appeal to institutional investors. For Buddy’s franchisees, the acquisition marks a transition that could shape everything from marketing strategies to multi-unit development in the years ahead, reinforcing the brand’s position in the competitive rent-to-own marketplace.Read the original article&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Buddy's Home Furnishings Acquisition - Skyline Investors - 1851 Franchise

Skyline Investors’ acquisition highlights how rent-to-own operators with dense unit networks and steady demand are drawing long-term capital and operational playbooks.

Buddy’s Home Furnishings Deal Signals More Private Equity Interest in Franchise Retail

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

North County Pizza Inc., a major&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> franchisee, has filed for Chapter 11 bankruptcy protection,&nbsp;<a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">Yahoo! Finance recently reported</a>. The bankruptcy filing gives North County Pizza time to restructure its debt and reorganize its business, while pausing any legal actions against the company during the process.The Oceanside, California-based franchisee did not explain why it filed for bankruptcy or whether it plans to close locations or lay off employees. Franchisees across the restaurant industry have pointed to tough competition, higher labor and food costs, and expensive leases as reasons for restructuring or filing for bankruptcy.The franchisee filed for bankruptcy on March 11 in the U.S. Bankruptcy Court for the Southern District of California, reporting $100,000 to $1 million in assets and $1 million to $10 million in liabilities.The announcement follows recent news that&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> plans to close 300 underperforming restaurants, including 200 by the end of 2026, and cut 7% of its workforce. It also comes just weeks after&nbsp;<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> announced it was&nbsp;<a href="https://1851franchise.com/yum-brands-pizza-hut-sale-2731599#franchise-news">considering a sale of Pizza Hut</a> and plans to close 250 underperforming U.S. locations.Together, these moves could point to a broader reset across the pizza franchise sector. For franchisees, this environment raises the stakes around site selection, cost control and operational efficiency, while also creating potential opportunities to capture market share as weaker locations exit the market.Read the original article <a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit<a href="http://www.1851growthclub.com">&nbsp;www.1851growthclub.com</a> and start your journey.

Large Domino’s Franchisee Files for Chapter 11 Bankruptcy

The California-based franchisee seeks to restructure debt as closures and strategic shifts continue across major pizza brands like Pizza Hut and Papa Johns.

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The&nbsp;<a href="https://www.franchise.org/">International Franchise Association</a> has released its annual&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">Franchising Economic Outlook</a> report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,”&nbsp;<a href="https://www.linkedin.com/in/matthewhaller">Matt Haller</a>, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."The report features key industry projections for the year, including:<ul><li>The addition of over 12,000 new franchised businesses</li><li>The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs</li><li>An increase in total franchise GDP from $549.9 to $558.4 billion</li><li>An increase in multi-unit ownership as current single-unit franchisees pursue scale</li></ul>In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends.&nbsp;<ul><li>This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.</li><li>A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.</li><li>Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.</li></ul>In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.Find the full 2026 Franchising Economic Outlook report&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">here</a>.

Highlighting child services and commercial and residential services as top performers, the organization predicts the industry will add over 150,000 jobs and increase its GDP by billions this year.

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Big O Tires Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Big O Tires is a full-service auto care franchise offering tires, brake repair, alignments, oil changes and preventive maintenance under a nationally recognized brand.

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Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

amada-senior-care-franchise-costs-fees-profit

BrightStar Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: BrightStar Care is a home health care franchise that provides both medical and non-medical services.

Hotel Franchising: The Ultimate Guide

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