Howard Johnson franchise
2025 filing · March 31, 2025Fewer locationsShares sales figures
Howard Johnson at a glance
An economy hotel offering overnight rooms as a Howard Johnson, Howard Johnson Inn or Howard Johnson Plaza Hotel. At the end of 2024 there were 139 Howard Johnson locations in the US, all franchised.
The business
- Industry
- Hotel
- Franchisor
- Howard Johnson International, Inc
- The company that sells the franchises
- Current franchisor selling since
- 1990
- 35 years of selling franchises
- Franchisor based in
- Parsippany, New Jersey
What you pay
- Cost to open
- $347K–$3.27M
- Conversion of an existing 100-room hotel, excluding land
- Franchise fee
- $35,000
- $350 per room with a $35,000 minimum.
- Royalty
- 5% of room revenue
- 5% of gross room revenues, paid monthly
- Brand fund
- 2%
- 2% of gross room revenue, paid with the royalty
- Territory
- Limited
- Limited protection
- Franchisor financing
- Some financing offered
Where it is
- US locations, 2024
- 139
- Franchised and company-owned
- Franchised
- 139
- Company-owned
- 0
- Change in 3 years
- −20
- Franchised locations, 2022–2024
- States
- 42
- Most in California, Florida and Texas
From Howard Johnson International, Inc’s 2025 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Howard Johnson among all franchises with the same figure.
| Figure | Howard Johnson | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $1,807,740 | Costs more than 91% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 139 | More than 81% of franchises |
How much a Howard Johnson franchise costs
Opening conversion of an existing 100-room hotel, excluding land costs an estimated $347,215 to $3,268,265. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are facility improvements ($0 to $1,647,950) and furniture, fixtures and equipment ($116,268 to $615,536). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Fee (inclusive of Application Fee) | $35,000 | ||
| Photos | $2,450 | $6,500 | |
| Training Tuition | $2,850 | $6,500 | |
| Training Expenses | $1,200 | $4,450 | |
| Temporary Signage | $0 | $1,250 | |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $0 | $103,000 | |
| Facility Improvements | $0 | $1,647,950 | |
| Conversion Contingency | $0 | $82,398 | |
| Technology Systems | $0 | $70,132 | |
| Property Management Set-Up and Installation | $4,500 | $22,100 | |
| Furniture, Fixtures and Equipment | $116,268 | $615,536 | |
| Signage | $15,000 | $80,000 | |
| Opening Inventory | $7,235 | $297,919 | |
| Insurance | $22,500 | $65,000 | |
| Grand Opening Advertising | $3,000 | $14,500 | |
| Miscellaneous Non-Tangible Asset Costs | $7,163 | $22,297 | |
| Additional Funds for 3 Month Initial Period | $130,049 | $193,733 | |
| Total | $347,215 | $3,268,265 | |
Source: Howard Johnson International, Inc, 2025 filing, page 43
Howard Johnson franchise fee
The franchise fee is $35,000, $350 per room with a $35,000 minimum.. You pay it when you sign the franchise agreement.
Source: Howard Johnson International, Inc, 2025 filing, page 25
Royalty and ongoing fees
| Royalty | 5% of gross room revenues, paid monthly. |
|---|---|
| Brand or marketing fund | 2% of gross room revenue, paid with the royalty. |
| Digital Pay-For-Performance (“PFP”) Commission | Up to 10% of GRR. |
| Relicense Fee (Transfers) | Currently, equal to the greater of $35,000 or $350 per room |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Howard Johnson International, Inc, 2025 filing, page 28
Other fees as filed, from pages 28–32. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Howard Johnson publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Howard Johnson International, Inc, 2025 filing, page 83
SBA loans to Howard Johnson franchisees
Lenders approved 301 SBA-backed loans for Howard Johnson franchisees from 1990 to 2026, $407.6M in all: 226 7(a) loans and 75 504 loans. Of the 272 that have ended, 234 were paid in full and 38 were charged off (14%). The other 29 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
Growth and closures
Share of franchised locations, 2024 / 2022–2024. Typical means the median: half of brands are above it, half below.
| Measure | Howard Johnson | Typical hotel brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | −2.8% / −13% | +2.1% / +9.7% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 7% / 24% | 3.1% / 14% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical hotel brand is the median of the 47 brands in hotel franchises with three years of counts.
How Howard Johnson compares
Of the 116 hotel franchises on this site, Howard Johnson is the 27th cheapest to open and the 35th largest by number of locations.
| Figure | Howard Johnson | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $347K | $9.44M | $222K |
| Cost to open, high end | $3.27M | $21.3M | $477K |
| Franchise fee | $35K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| Brand fund | 2% | 3% | 2% |
| US locations | 139 | 37 | 21 |
| Shares earnings figures | Yes | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 159 (−9) | 0 | – | – |
| 2022 | 148 (−11) | 0 | +4 | −15 |
| 2023 | 143 (−5) | 0 | +8 | −13 |
| 2024 | 139 (−4) | 0 | +6 | −10 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Over 4 years, from the start of 2021 to the end of 2024, franchised locations went from 168 to 139 (−29, −17%). The earlier years come from the brand's 2024 filing.
Source: Howard Johnson International, Inc, 2025 filing, page 86
2021: Howard Johnson International, Inc, 2024 filing, page 93
Where Howard Johnson locations are
At the end of 2024, Howard Johnson had franchised locations in 42 states. The most are in California, Florida and Texas.
- California18
- Florida11
- Texas9
- New Jersey8
- Georgia7
- Virginia7
| State | Franchised |
|---|---|
| California | 18 |
| Florida | 11 |
| Texas | 9 |
| New Jersey | 8 |
| Georgia | 7 |
| Virginia | 7 |
| Arizona | 6 |
| Massachusetts | 5 |
| Tennessee | 5 |
| Louisiana | 4 |
All 42 states
Source: Howard Johnson International, Inc, 2025 filing, page 87
Who owns Howard Johnson?
Howard Johnson franchises are sold by Howard Johnson International, Inc. It is a subsidiary of Wyndham Hotel Group, LLC.
Howard Johnson is one of the 21 Wyndham Hotels & Resorts brands here. Wyndham Hotels & Resorts is a public company based in Parsippany, New Jersey. Its shares trade on the New York Stock Exchange as WH.
From Howard Johnson International, Inc’s 2025 filing, page 9; Wyndham Hotels & Resorts.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 20–25. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Howard Johnson International, Inc, 2025 filing, litigation on pages 20–25, bankruptcy on page 25
Howard Johnson filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from Howard Johnson International, Inc’s 2025 filing, issued March 31, 2025; the earlier ones below are on record with the Minnesota Department of Commerce and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2025 filing | March 31, 2025 | Minnesota | Costs, fees and locations, 2022–2024 |
| 2024 filing | – | Minnesota | Locations, 2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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