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Description
Investment Icon

What Are the Initial Investment Requirements for an AmericInn Franchise?

To open an AmericInn franchise, you should be prepared for a wide range of initial investment costs. The estimated low end is around $279,269, while the high end can reach up to $10,129,540. This includes a franchise fee of $35,000, along with additional costs for equipment, training, and site development. It's crucial to have cash reserves between $279,269 and $4,054,753 and a net worth of $500,000 to $1,000,000 to meet the financial prerequisites for franchise ownership.

Fees Icon

What Ongoing Fees Should You Expect as an AmericInn Franchisee?

As an AmericInn franchisee, you will need to budget for ongoing royalties and marketing fees. The royalty fee is set at 5% of your gross revenue, while a marketing fee of 2% is also required. These fees contribute to the brand's overall marketing and operational support, ensuring you are part of a well-recognized franchise system. Understanding these financial commitments is essential for maintaining profitability and planning your budget effectively.

Revenue Icon

What Is the Average Revenue Potential for an AmericInn Franchise?

The average annual revenue for an AmericInn franchise unit is approximately $1,498,000. However, revenue can vary significantly, with the highest-performing units generating up to $1,217,000 annually. This potential for high revenue underscores the importance of effective management and operational efficiency in maximizing your franchise's profitability.

Breakeven Icon

How Long Does It Take to Break Even with an AmericInn Franchise?

Franchisees can expect to reach their breakeven point within approximately 24 months of operation. This timeframe is crucial for planning your financial strategy and understanding the cash flow needs of your business. Additionally, the investment payback period is also estimated at 24 months, indicating that with proper management, you can recover your initial investment relatively quickly.

AmericInn Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$500,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$35,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

24 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$279,269 - $10,129,540
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$279,269 - $4,054,753
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$6,000
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$63,140
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$1,217,000
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$63,140
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Restaurant Franchises
Category icon A more specific division within the broader industry.

i Category:

Full-Service Restaurants
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Geoff Ballotti
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

22 Sylvan WayParsippany, NJ 07054
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1993
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

AmericInn International, LLC

AmericInn Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

215
The number of locations owned by independent franchisees.

Franchised Units i

215
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2020 2021 2022
Total Units 204 206 215
Net Change YoY 2 9
Franchised Units 204 206 215
Net Change YoY 2 9
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Investment Overview

The initial investment to open an AmericInn franchise ranges from $279,269 to $10,129,540, depending on various factors such as location and size. The franchise fee is set at $35,000, with ongoing royalty fees at 5% of gross sales and a marketing fee of 2%. Potential franchisees should be prepared to have a cash reserve between $279,269 and $4,054,753 and a net worth of $500,000 to $1,000,000 to qualify for ownership.

Potential About

Revenue Potential

AmericInn franchises have demonstrated strong revenue potential, with average annual revenue per unit reported at $1,498,000. The median annual revenue is $63,140, while the highest-performing units can achieve revenues of up to $1,217,000. This indicates a lucrative opportunity for franchisees willing to invest in the brand and effectively manage their operations.

Metrics About

Franchise Growth

The AmericInn franchise has shown consistent growth in the number of franchised units, increasing from 204 units in 2020 to 215 units in 2022. This growth trajectory highlights the brand's expanding footprint and the increasing demand for its services. The absence of corporate-owned units suggests a strong focus on franchising as a growth strategy.

Fees About

Breakeven Analysis

Franchisees can expect to reach breakeven within approximately 24 months of operation. This timeline is crucial for prospective owners to consider, as it impacts cash flow management and long-term profitability. Understanding the breakeven point allows franchisees to plan their financial strategies effectively.

Breakeven About

Operational Expenses

Average annual operating expenses for an AmericInn franchise total around $379,640. Key expenses include operating supplies and equipment ($251,370), insurance ($15,000), and pre-opening wages ($76,225). Managing these costs efficiently is essential for maximizing profitability and ensuring the franchise's financial health.

Units About

Support and Training

AmericInn provides comprehensive support and training for franchisees, ensuring they are well-equipped to run their businesses successfully. This includes assistance with site selection, marketing strategies, and operational best practices. The ongoing support from the franchisor is a significant advantage for both new and experienced franchisees, facilitating smoother operations and enhancing overall performance.

Frequently Asked Questions

The initial investment for an AmericInn franchise ranges from $279,269 to $10,129,540, depending on various factors such as location and property size. This includes the initial franchise fee of $35,000.