Source: FranopolisMagnuson Hotels
What It Costs
SourcesWhere Your Startup Money Goes
| Cost | Disclosed Amount | Source |
|---|---|---|
| Initial franchise fee (high) | $10,000 | 2025 FDD · PDF Page 15 $10,000 |
| Signage and branded supplies (low) | $3,000 to $40,000 | 2025 FDD · PDF Page 15 $3,000 to $40,000 |
| Additional funds – 3 months (low) | $150,000 to $300,000 | 2025 FDD · PDF Page 15 $150,000 to $300,000 |
| Total estimated initial investment (low) | $175,000 to $400,000 | 2025 FDD · PDF Page 15 $175,000 to $400,000 |
| Initial franchise fee (low) | $10,000 | 2025 FDD · PDF Page 15 $10,000 |
| Professional fees (low) | $2,000 to $10,000 | 2025 FDD · PDF Page 15 $2,000 to $10,000 |
| Insurance (low) | $10,000 to $40,000 | 2025 FDD · PDF Page 15 $10,000 to $40,000 |
Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.
SourcesFees And Payment Terms
| Fee | Disclosed Terms | Source |
|---|---|---|
| Re-booking fee multiplier | 200% of the booking fee, or the cost of alternate accommodation, whichever is higher, plus any of our other costs we incur addressing guest complaints | 2025 FDD · PDF Page 13 |
| Misreported revenue reference period | ...based on 110% of the average monthly Gross Room Revenue of the three prior months. | 2025 FDD · PDF Page 15 |
| Extended closure offline amount | $750 per occurrence, plus $25 / day offline (subject to change) | 2025 FDD · PDF Page 14 |
| Late payment fee | 5% of the balance per occurrence, plus 1.5% per month (or the maximum rate allowed by law) | 2025 FDD · PDF Page 12 |
| Approved PMS fee estimate high | Our direct costs (estimated $300 to $2,000 per year) | 2025 FDD · PDF Page 12 |
| Third-party channel other fee estimate low | Reimbursement of all fees (currently estimated: 10% for GDS reservations, or 15% to 20% for other channels) (subject to change) | 2025 FDD · PDF Page 11 |
| De-identification processing fee | $9,995 (subject to change) | 2025 FDD · PDF Page 14 |
| Extended closure fee | $750 per occurrence, plus $25 / day offline (subject to change) | 2025 FDD · PDF Page 14 |
| Late payment monthly interest | 5% of the balance per occurrence, plus 1.5% per month (or the maximum rate allowed by law) | 2025 FDD · PDF Page 12 |
| Termination damages payment deadline | Within 10 days of termination | 2025 FDD · PDF Page 14 |
| De-identification deadline | ...if de- identification is not completed within 30 days of termination or expiration of your Franchise Agreement... | 2025 FDD · PDF Page 14 |
| Third-party channel other fee estimate high | Reimbursement of all fees (currently estimated: 10% for GDS reservations, or 15% to 20% for other channels) (subject to change) | 2025 FDD · PDF Page 11 |
| Initial franchise fee waived once in last fiscal year | In the last fiscal year, we waived one initial franchise fee of $10,000, otherwise the initial franchise fee was uniformly imposed. | 2025 FDD · PDF Page 11 |
| Misreported revenue fee basis | ...all fees calculated under your Franchise Agreement by reference to Gross Room Revenue will be calculated based on 110% of the average monthly Gross Room Revenue of the three prior months. | 2025 FDD · PDF Page 15 |
| Airbnb connection fee low | $100 to $260 per month (subject to change) | 2025 FDD · PDF Page 11 |
| Airbnb connection fee high | $100 to $260 per month (subject to change) | 2025 FDD · PDF Page 11 |
| Inconvenience fee maximum | This fee may be increased up to $5,000. | 2025 FDD · PDF Page 14 |
| Re-activation annual increase cap | This fee may be increased by up to 10% per year on a compounding basis. | 2025 FDD · PDF Page 13 |
| Extended closure annual increase cap | This fee may be increased by up to 10% per year on a compounding basis. | 2025 FDD · PDF Page 14 |
| Third-party channel GDS fee estimate | Reimbursement of all fees (currently estimated: 10% for GDS reservations, or 15% to 20% for other channels) (subject to change) | 2025 FDD · PDF Page 11 |
| Approved PMS fee estimate low | Our direct costs (estimated $300 to $2,000 per year) | 2025 FDD · PDF Page 12 |
| Inconvenience notice period | ...with fewer than 90 days prior written notice to us. | 2025 FDD · PDF Page 14 |
| Standards violation fee | $2,000 per month | 2025 FDD · PDF Page 12 |
| Re-activation offline fee | $750 per occurrence, plus $25 / day offline (subject to change) | 2025 FDD · PDF Page 13 |
| Insurance certificate fee | $250 per month | 2025 FDD · PDF Page 13 |
| Minimum invoice revenue annual increase cap | We may modify the minimum requirement by up to 10% per year on a compounding basis with 30 days’ notice to you. | 2025 FDD · PDF Page 12 |
| Re-activation fee | $750 per occurrence, plus $25 / day offline (subject to change) | 2025 FDD · PDF Page 13 |
| Insufficient funds fee | $25 per occurrence | 2025 FDD · PDF Page 12 |
| Initial fee waived in last fiscal year | In the last fiscal year, we waived one initial franchise fee of $10,000, otherwise the initial franchise fee was uniformly imposed. | 2025 FDD · PDF Page 11 |
| Extended closure threshold | You must pay this fee if you take any Guest Room out of available inventory for longer than 14 days without authorization. | 2025 FDD · PDF Page 14 |
| Conversion violation fee | $1,000 per month | 2025 FDD · PDF Page 12 |
| Failed inspection fee | $2,500 (subject to change), plus the costs of all follow- up inspections | 2025 FDD · PDF Page 13 |
| GDS booking fee | $11.50 per GDS booking (subject to change) | 2025 FDD · PDF Page 11 |
| Continuing fee | 8% of Gross Room Revenue | 2025 FDD · PDF Page 11 |
Some fees apply only to a specific event or service. These are not all monthly expenses.
SourcesInside The FDD
SourcesPlain-language summaries of the available FDD information. Each summary links to its source, with original excerpts available to review.
Sources
The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.
19Reported Business Results
The franchisor does not provide claims about future franchisee financial results or past results of its company-owned or franchised locations.
2025 FDD · PDF Page 34 · Item 19 · View Source
Read Source Excerpts
Source NotesWe do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.
Find The Right Business For The Life You Want.
You don’t have to compare every brand on your own. A franchise consultant can help narrow your options and work through what ownership would ask of you.
Bring your questions about this brand, your priorities and the kind of business you want to run.
Your Role
Understand the hours, sales and people responsibilities behind the ownership model.
Your Shortlist
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Your Market
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