Source: Franopolis

Membership Hotel Organization

Sources2025 FDD Research

Startup Investment$71,595 to $1,244,695Source Research · Item 7

FDD Edition2025Sources

What It Costs

Sources

Disclosed Startup Investment$71,595 to $1,244,695

Your location, business format and operating plan can change the total.

Where Your Startup Money Goes

Cost	Disclosed Amount	Source
Computer system acquisition range low — $2695	$2,695 to $3,695	2025 FDD · PDF Page 20 We estimate the cost of purchasing the Computer System will be between $2,695 (if you already have an adequate system and only need the PMS software, front desk service stations, a scanner, signature pad, and a EMV terminal that you will purchase from us) to $3,695.
Inventory — range low	$100 to $5,000	2025 FDD · PDF Page 18 Inventory (10) $100 $5,000 As Incurred As Incurred Third Parties
Initial Franchise Fee — range low	$9,995	2025 FDD · PDF Page 18 Initial Franchise Fee (2) $9,995 $9,995 Lump Sum When You Sign the Franchise Agreement Us
Training — range low	$0 to $5,200	2025 FDD · PDF Page 19 Training (11) $0 $5,200 As Incurred As Incurred Us, Providers of Certification Programs, Travel, Lodging, and Food Services
Franchise Application Fee — range low	$500	2025 FDD · PDF Page 18 Franchise Application Fee (1) $500 $500 Lump Sum Upon application but no earlier than fourteen calendar days after you execute the Receipt attached as Exhibit J Us
Architecture — range low	$0 to $7,500	2025 FDD · PDF Page 18 Architecture Fees, Permits and Licenses $0 $7,500 As Incurred As Incurred Architect, Government Agencies
Marketing — range low	$500 to $25,000	2025 FDD · PDF Page 18 Marketing (6) $500 $25,000 As Incurred Before Opening Third Parties
Professional Fees — range low	$500 to $10,000	2025 FDD · PDF Page 18 Professional Fees (9) $500 $10,000 As Incurred As Incurred Third Parties
Additional Funds — range low	$50,000 to $300,000	2025 FDD · PDF Page 19 Additional Funds - 3 months (12) $50,000 $300,000 As Incurred As Incurred Us and Third Parties
TOTAL — range low	$71,595 to $1,244,695	2025 FDD · PDF Page 19 TOTAL ESTIMATED INITIAL INVESTMENT (13) $71,595 $1,244,695
Equipment, Computer System, Fixtures, Other Fixed Assets, Construction, Remodeling, Leasehold Improvements and Decorating Costs — range low	$2,800 to $500,000	2025 FDD · PDF Page 18 Equipment, Computer System, Fixtures, Other Fixed Assets, Construction, Remodeling, Leasehold Improvements and Decorating Costs (3) $2,800 $500,000
Inspection Expense — range low	$200 to $1,500	2025 FDD · PDF Page 18 Inspection Expense (5) $200 $1,500 Lump Sum Upon Invoice Us
Insurance — range low	$2,000 to $300,000	2025 FDD · PDF Page 18 Insurance (8) $2,000 $300,000 As Incurred As Incurred Insurance Company
Signage — range low	$5,000 to $80,000	2025 FDD · PDF Page 18 Signage (7) $5,000 $80,000 As Incurred As Incurred Third Parties

Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.

Sources

Fees And Payment Terms

Fee	Disclosed Terms	Source
Inspection daily current/cap — $1500	Inspection Fee The then-current fee, which is currently $500 per day, plus expenses As incurred You will pay this fee if we conduct an in- person inspection of your MHO Business. We may increase this fee up to $1,500 per day upon 30 days’ notice. You will also pay all costs and expenses we incur for food, travel, and lodging.	2025 FDD · PDF Page 14
Transfer deposit — $1000	Transfer Fee Our then-current application fee and then-current Initial Franchise Fee $1,000 non- refundable deposit at time of transfer application submittal and the remaining balance of fee at time of the approved transfer Payable in connection with the transfer of your MHO Business, a transfer of ownership of your legal entity, or the Franchise Agreement (this does not apply to the transfer of an entity you control— see below). If we are not offering Franchises at the time of your transfer, the transfer fee will be the initial franchise fee plus the application fee listed in the most recent Franchise Disclosure Document.	2025 FDD · PDF Page 15
Customer complaint — $25	Customer Complaint Fee $25 per complaint Within 5 days of receipt of invoice Payable if there is a customer complaint about your MHO Business.	2025 FDD · PDF Page 13
Initial training low,per-person and representative expense — $500	Training We provide a virtual initial training program. However, we may decide in our sole discretion that you need additional training in certain aspects of the business, in which case we may require you to pay us a fee to train you or your key personnel, or we may provide training at your MHO Business and require reimbursement for costs incurred by our representative(s). We estimate this will be from $0 (assuming no in-person training is needed) to $5,000 (assuming one day of training at $500 per person for three people and up to $3,500 for one of our representatives to travel to your MHO Business). The fee for additional training is uniform and our travel expenses will vary depending on the location of your MHO Business. These additional training fees are non-refundable once paid.	2025 FDD · PDF Page 11
Initial training low,per-person and representative expense — $5000	Training We provide a virtual initial training program. However, we may decide in our sole discretion that you need additional training in certain aspects of the business, in which case we may require you to pay us a fee to train you or your key personnel, or we may provide training at your MHO Business and require reimbursement for costs incurred by our representative(s). We estimate this will be from $0 (assuming no in-person training is needed) to $5,000 (assuming one day of training at $500 per person for three people and up to $3,500 for one of our representatives to travel to your MHO Business). The fee for additional training is uniform and our travel expenses will vary depending on the location of your MHO Business. These additional training fees are non-refundable once paid.	2025 FDD · PDF Page 11
PMS software setup and optional OTA/equipment — $100	PMS Software Setup and Equipment Fees You will pay us a one-time setup fee of $495 for setting up the property management system (“PMS”). The setup fee is uniform, paid upon installation, fully earned once paid and is non-refundable. If you choose to sign up for the optional service Advanced OTA Interface, you will pay us our designated vendor’s then-current connectivity fee, which we will remit to the designated supplier. As of the Issuance Date, we anticipate the fee to be approximately $100, but the rate is set by the supplier. The connectivity fee is paid at the time of connection and non-refundable unless otherwise arranged with the supplier. You will also purchase equipment for the front desk service stations at your property from us, which we estimate to be approximately $2,200. This also includes a scanner, signature pad, and a Europay Mastercard and Visa (“ EMV ” ) terminal. The equipment fee is payable when you order the equipment and are non-refundable.	2025 FDD · PDF Page 11
Inspection range low — $200	Inspection Expense Prior to approving you as a franchisee, we may inspect your property and will charge you for our travel, meals, and lodging expenses related to such inspection. We estimate this to be between $200 and $1,500. These amounts are non-refundable and payable upon receipt of invoice.	2025 FDD · PDF Page 10
Late fee and annual interest cap — $100	Late Payment Fee $100 per occurrence, plus the lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law As incurred Payable if any payment due to us or our affiliate is not made by the due date. Interest accrues from the original due date until payment is received in full.	2025 FDD · PDF Page 14
Royalty options perroom/peroccupied roomnight — $2	Royalty (2) One of the following 2 options: (i) $26.95 per room at the Hotel; or (ii) $2.00 per occupied room per night at the Hotel during the month. $ If you elect to pay the Royalty on a “per room” basis, the Royalty Fee is due on 1st day of the month of each month. If you elect to pay the Royalty on a “per occupied room” basis, the Royalty is due on the last day of the month. The Franchisee must elect which of the 2 Royalty Options when the Franchise Agreement is signed. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance.	2025 FDD · PDF Page 11
Liquidated damages perunit — $200	Liquidated Damages $200 for each unit on the Property Within 15 days after termination of the Franchise Agreement Due if the Franchise Agreement terminates within eighteen (18) months for any reason.	2025 FDD · PDF Page 17
Management daily — $500	Management Fee $500 per day, plus costs and expenses As incurred Payable if we manage your MHO Business after: (1) you cease to perform your responsibilities (whether due to retirement, death, disability, or for any other reason) and you fail to find an adequate replacement Responsible Owner (defined in Item 15) within 30 days; (2) you are in material breach of this Franchise Agreement; or (3) upon a crisis management event.	2025 FDD · PDF Page 14
Technology/support perroom monthly — $26.95	Technology and Support Fee The then-current fee (currently $26.95 per room (“Unit”) per month) Due on the 1 st day of the month. This fee covers certain technologies and support used in the operation of your MHO Business, such as access to our preferred property management system, booking	2025 FDD · PDF Page 11
Initial franchise — $9995	Initial Franchise Fee The “Initial Franchise Fee” for a single MHO Business is $9,995. The Initial Franchise Fee is payment for the pre-opening assistance that we provide to you to allow you to open your MHO Business and also offsets some of our franchise recruitment expenses. The Initial Franchise Fee is uniform, fully earned by us once paid and is non-refundable under any circumstances. The Initial Franchise Fee is payable when you sign your Franchise Agreement. During our last fiscal year ended December 31, 2024, we did not collect any Initial Franchise Fees.	2025 FDD · PDF Page 10
Dishonored payment cap — $50	Dishonored Fee Payment The lesser of $50 or the maximum amount permitted by law, plus any amount past due with the highest rate of interest allowed by law in your state As Incurred Payable if any attempt by us to withdraw funds is dishonored for any reason.	2025 FDD · PDF Page 14
Unauthorized advertising — $500	Unauthorized Advertising Fee $500 per occurrence On demand This fee is payable to us or, if established, the Brand Fund, if you use unauthorized advertising in violation of the terms of the Franchise Agreement.	2025 FDD · PDF Page 13
Late fee and annual interest cap — 18%	Late Payment Fee $100 per occurrence, plus the lesser of the daily equivalent of 18% per year simple interest or the highest rate allowed by law As incurred Payable if any payment due to us or our affiliate is not made by the due date. Interest accrues from the original due date until payment is received in full.	2025 FDD · PDF Page 14
Inspection range high — $1500	We estimate this to be between $200 and $1,500.	2025 FDD · PDF Page 10
Royalty options perroom/peroccupied roomnight — $26.95	Royalty (2) One of the following 2 options: (i) $26.95 per room at the Hotel; or (ii) $2.00 per occupied room per night at the Hotel during the month. $ If you elect to pay the Royalty on a “per room” basis, the Royalty Fee is due on 1st day of the month of each month. If you elect to pay the Royalty on a “per occupied room” basis, the Royalty is due on the last day of the month. The Franchisee must elect which of the 2 Royalty Options when the Franchise Agreement is signed. Your Royalty is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance.	2025 FDD · PDF Page 11
Regional training — range low per day	The then-current fee; ($500 per attendee per day for additional training (which we may increase to $1,500); and between $100 and $150 per day for regional training).	2025 FDD · PDF Page 13
Inspection daily current/cap — $500	Inspection Fee The then-current fee, which is currently $500 per day, plus expenses As incurred You will pay this fee if we conduct an in- person inspection of your MHO Business. We may increase this fee up to $1,500 per day upon 30 days’ notice. You will also pay all costs and expenses we incur for food, travel, and lodging.	2025 FDD · PDF Page 14
Initial training low,per-person and representative expense — $3500	Training We provide a virtual initial training program. However, we may decide in our sole discretion that you need additional training in certain aspects of the business, in which case we may require you to pay us a fee to train you or your key personnel, or we may provide training at your MHO Business and require reimbursement for costs incurred by our representative(s). We estimate this will be from $0 (assuming no in-person training is needed) to $5,000 (assuming one day of training at $500 per person for three people and up to $3,500 for one of our representatives to travel to your MHO Business). The fee for additional training is uniform and our travel expenses will vary depending on the location of your MHO Business. These additional training fees are non-refundable once paid.	2025 FDD · PDF Page 11
Convention current/cap annual and regional — $100	Convention Fee The then-current fee (currently estimated to be $500 per person for annual conventions and $100 for regional meetings) Upon receipt of written notice that such convention is being held Your “Responsible Owner” or “General Manager,”(both defined in Item 15) if any, must attend any national or regional conferences we hold. This fee defrays the cost of your attendance. It is due regardless of whether or not you attend. We may increase the fee to up to $1,000 for annual conventions and up to $500 for regional meetings, upon 30 days’ written notice.	2025 FDD · PDF Page 13
Creditcard service maximum — 4%	Payment Service Fee Up to 4% of total charge As incurred We may charge this fee if you make a payment to us or our affiliate by credit card.	2025 FDD · PDF Page 13
Supplier evaluation cap — $2000	Supplier and Product Evaluation Fee Costs of inspection (estimated to be up to $2,000) Within ten days after invoicing Payable if we inspect a new product, service or proposed supplier nominated by you.	2025 FDD · PDF Page 13
Convention current/cap annual and regional — $1000	Convention Fee The then-current fee (currently estimated to be $500 per person for annual conventions and $100 for regional meetings) Upon receipt of written notice that such convention is being held Your “Responsible Owner” or “General Manager,”(both defined in Item 15) if any, must attend any national or regional conferences we hold. This fee defrays the cost of your attendance. It is due regardless of whether or not you attend. We may increase the fee to up to $1,000 for annual conventions and up to $500 for regional meetings, upon 30 days’ written notice.	2025 FDD · PDF Page 13
Additional training — current fee per attendee per day	The then-current fee; ($500 per attendee per day for additional training (which we may increase to $1,500); and between $100 and $150 per day for regional training).	2025 FDD · PDF Page 13
Additional training — maximum fee per attendee per day	The then-current fee; ($500 per attendee per day for additional training (which we may increase to $1,500); and between $100 and $150 per day for regional training).	2025 FDD · PDF Page 13
Initial training low,per-person and representative expense — $0	Training We provide a virtual initial training program. However, we may decide in our sole discretion that you need additional training in certain aspects of the business, in which case we may require you to pay us a fee to train you or your key personnel, or we may provide training at your MHO Business and require reimbursement for costs incurred by our representative(s). We estimate this will be from $0 (assuming no in-person training is needed) to $5,000 (assuming one day of training at $500 per person for three people and up to $3,500 for one of our representatives to travel to your MHO Business). The fee for additional training is uniform and our travel expenses will vary depending on the location of your MHO Business. These additional training fees are non-refundable once paid.	2025 FDD · PDF Page 11
Optional OTA connectivity — $100	Connectivity Fee for Advanced OTA Interface Varies based on your agreement with our designated supplier (estimated to be approximately $100 as of the Issuance Date) On demand We may collect this connectivity fee should you choose to sign up for the optional service Advanced OTA Interface. The cost of this service will be set by our designated supplier, and we will collect this fee on behalf of the designated supplier.	2025 FDD · PDF Page 12
Regional training — range high per day	The then-current fee; ($500 per attendee per day for additional training (which we may increase to $1,500); and between $100 and $150 per day for regional training).	2025 FDD · PDF Page 13
PMS software setup and optional OTA/equipment — $495	PMS Software Setup and Equipment Fees You will pay us a one-time setup fee of $495 for setting up the property management system (“PMS”). The setup fee is uniform, paid upon installation, fully earned once paid and is non-refundable. If you choose to sign up for the optional service Advanced OTA Interface, you will pay us our designated vendor’s then-current connectivity fee, which we will remit to the designated supplier. As of the Issuance Date, we anticipate the fee to be approximately $100, but the rate is set by the supplier. The connectivity fee is paid at the time of connection and non-refundable unless otherwise arranged with the supplier. You will also purchase equipment for the front desk service stations at your property from us, which we estimate to be approximately $2,200. This also includes a scanner, signature pad, and a Europay Mastercard and Visa (“ EMV ” ) terminal. The equipment fee is payable when you order the equipment and are non-refundable.	2025 FDD · PDF Page 11
PMS software setup and optional OTA/equipment — $2200	PMS Software Setup and Equipment Fees You will pay us a one-time setup fee of $495 for setting up the property management system (“PMS”). The setup fee is uniform, paid upon installation, fully earned once paid and is non-refundable. If you choose to sign up for the optional service Advanced OTA Interface, you will pay us our designated vendor’s then-current connectivity fee, which we will remit to the designated supplier. As of the Issuance Date, we anticipate the fee to be approximately $100, but the rate is set by the supplier. The connectivity fee is paid at the time of connection and non-refundable unless otherwise arranged with the supplier. You will also purchase equipment for the front desk service stations at your property from us, which we estimate to be approximately $2,200. This also includes a scanner, signature pad, and a Europay Mastercard and Visa (“ EMV ” ) terminal. The equipment fee is payable when you order the equipment and are non-refundable.	2025 FDD · PDF Page 11
Audit understatement threshold — 2%	Audit Expenses Cost of audit and inspection, any understated amounts, and any related accounting, legal and travel expenses On demand You will be required to pay this if an audit reveals that you understated weekly Gross Sales by more than 2% or you fail to submit required reports.	2025 FDD · PDF Page 14
Potential cooperative cap — 5%	Local and Regional Advertising Cooperatives (4) Established by cooperative members, up to 5% of Gross Sales Established by cooperative members We currently do not have a cooperative but reserve the right to require one to be established in the future. We anticipate that each MHO franchise and each MHO Business that we own will have one vote for each MHO franchise operated in the designated market. Each MHO Business we own that exists within the cooperative’s area will contribute to the cooperative on the same basis as franchisees. We anticipate that each MHO franchisee and each MHO Business that we own will have one vote for each MHO operated in the designated market. Item 11 contains more information about advertising cooperatives.	2025 FDD · PDF Page 12
Franchise application — $500	Franchise Application Fee You will pay us a franchise application fee of $500 upon applying for a Franchise, but in no event earlier than fourteen calendar days after you execute the Receipt Page on Exhibit J. The franchise application fee is uniform, fully earned by us once paid and is non-refundable under any circumstances.	2025 FDD · PDF Page 10

Some fees apply only to a specific event or service. These are not all monthly expenses.

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Inside The FDD

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Plain-language summaries of the available FDD information. Each summary links to its source, with original excerpts available to review.

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Research Data: Franopolis

The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.

07Estimated Startup Investment

The FDD estimates a total startup investment of $71,595 to $1,244,695. Review the listed costs and any conditions before setting your own startup budget.

2025 FDD · PDF Page 19 · Item 7 · View Source

Read Source Excerpts

TOTAL ESTIMATED INITIAL INVESTMENT (13) $71,595 $1,244,695
2025 FDD · PDF Page 19 · Item 7

Source Notes

Expert Guidance

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Inside The FDD

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