Howard Johnson
The total investment to open a Howard Johnson franchise ranges from $347,215 to $6.7M. The initial franchise fee is $35,000. Ongoing royalties are 5% plus a 2% advertising fee.
What is the Howard Johnson franchise?
Howard Johnson is a globally recognized hotel franchise within the Wyndham Hotels & Resorts system. The brand serves the mid market segment and a broad range of travelers. Its history began in 1925, when Howard Deering Johnson acquired a small patent medicine store and soda fountain in Wollaston, Massachusetts. He expanded his ice cream shops and restaurants across the nation and is widely credited with advancing the franchise model. The first Howard Johnson motor lodge franchise opened in Savannah, Georgia, in 1954, adding lodging to the existing restaurant business. As of 2026, nearly 475 Howard Johnson hotel franchises operate in 17 countries. Data dated December 31, 2025, reports 304 hotels, while another source cites approximately 352 units. The United States has over 150 franchises according to one source, while Vetted Biz reports 139 total U.S. locations. At the end of 2020, the brand had 310 locations worldwide, including 168 in the United States, 69 in China, and 46 across Latin America. The global hotel market was valued at USD 2,080.57 billion in 2025 and is projected to reach USD 3,931.42 billion by 2034, at a compound annual growth rate of 7.54 percent. Another estimate places the market at USD 1,376.40 billion in 2023 and USD 2,993.90 billion by 2032. Howard Johnson’s long operating history, mid market focus, and position within Wyndham make it a subject for independent franchise investment review.
The hotels and motels industry, including Hotels except Casino Hotels and Motels, represents a large and growing part of global hospitality. One market estimate places its value at USD 2,080.57 billion in 2025, with growth to USD 3,931.42 billion by 2034 at a 7.54 percent compound annual growth rate. Another estimates USD 1,376.40 billion in 2023 and USD 2,993.90 billion by 2032. Demand is supported by leisure and business travel, rising disposable income in emerging economies, renewed domestic tourism, and continued interest in travel. Howard Johnson’s mid market position serves travelers seeking affordability, comfort, and consistent service. That value focus can help the segment remain relevant during periods when customers pay closer attention to price. Standardized lodging and interest in experiences also support demand. Economic stability, infrastructure development, and greater professionalization across hospitality add support for the category. Competition remains strong, but the market outside major hotel families is fragmented. A recognized brand with nearly a century of history may have an advantage in attracting guests and franchise operators. Market size and projected growth make hotels and motels a significant category for franchise review, although results will depend on property management and local conditions.
The official franchise data states an initial franchise fee of $35,000. Other sources report fees of $43,350 to $66,925, $43,600 to $61,350, and $36,000. The variation may reflect agreement types or regional factors. Total initial investment depends on whether the property is a conversion or new construction project, along with hotel size and location. Provided franchise data gives a range of $531,500 to $7.50 million. For a 100 room conversion facility, other research reports $369,836 to $2,891,219, excluding land. For a 100 room new construction facility, the reported range is $5,278,421 to $9,603,858, also excluding land. Other reported investment ranges are $301,284 to $11,114,482, $347,215 to $11,539,776, and $188,500 to $7,100,000. The FDD Item 7 range is $6,681,950 to $11,539,776. These figures show how the capital requirement can differ substantially between a conversion and a new build. One source states liquid capital of $36,000. Other information varies, including a minimum cash requirement from $1,580,000 to a higher end figure based on location and build out costs. The advertising fee is 3 percent, with other data indicating 2 percent or 1 percent to 3 percent of sales for national advertising funds. Howard Johnson has been part of Wyndham Hotels & Resorts since 2006. Veterans may receive a 50 percent discount on application and franchise fees and a development incentive of up to $4,000 per room. Another source reports a 5 percent veteran discount on the franchise fee.
A Howard Johnson franchise requires daily hotel operations focused on guest service, facility maintenance, cleanliness, reservations, and staff supervision. The operating team may include front desk, housekeeping, maintenance, and food and beverage employees depending on the property’s amenities. The system supports both conversions of existing facilities and new construction, allowing an owner to use existing real estate or develop a property for a particular market. Training includes up to 30 hours of on the job instruction and 41 to 81 hours of classroom instruction. General managers attend a five day General Manager Orientation called Strategic Training for Exceptional Performance, or S.T.E.P., at Wyndham’s corporate headquarters. Owners also receive a three day Owner Orientation covering available support and services. Regional training workshops take place throughout the year. Ongoing resources include newsletters, meetings and conventions, a toll free support line, grand opening assistance, online support platforms, security and safety procedures, field operations consultants, proprietary software, and a franchisee intranet platform. Marketing support includes cooperative advertising, national and regional media campaigns, social media, SEO, website development, targeted email marketing, and access to the Wyndham loyalty program and mobile application. Specific territory exclusivity terms are not provided, although upfront franchise fees may vary with territory size. No explicit multi unit requirement is stated. The Wyndham system generally supports multi unit ownership, while an owner operator structure may suit an initial property. Professional management may also be used.
Buyers need to review industry benchmarks, historical unit information, and market position instead of relying on franchisor reported unit economics. The global hotels market was valued at USD 2,080.57 billion in 2025 and is projected to reach USD 3,931.42 billion by 2034 at a compound annual growth rate of 7.54 percent. Howard Johnson’s restaurant division had 400 restaurants by 1954. When the company went public in 1961, it operated 605 restaurants, including 265 company owned and 340 franchised units, plus 88 franchised motor lodges across 32 states and The Bahamas. The restaurant chain exceeded 1,000 locations by the late 1960s and 1970s. By 1975, it had 649 company owned restaurants, 280 franchised restaurants, 125 company operated motor lodges, and 411 franchised motor lodges. The restaurant business later declined, and its last restaurant closed in Lake George, New York, in 2022. Hotel operations continue to have an international presence. As of December 31, 2025, there were 304 Howard Johnson hotels. As of 2026, nearly 475 hotel franchises operated in 17 countries. Other reports identify 310 worldwide locations at the end of 2020, including 168 in the United States, 69 in China, and 46 in Latin America. In 1999, the brand franchised nearly 500 Hotels and Inns worldwide. The counts differ by period and source but show a continuing international footprint. Wyndham Hotels & Resorts is a publicly traded company, and Howard Johnson operates within that parent system.
Howard Johnson’s hotel business has expanded and changed over time while its restaurant division ended with the Lake George, New York, closure in 2022. Current franchise data lists 277 total units, all franchised. Other figures include 304 hotels as of December 31, 2025, nearly 475 hotel franchises in 17 countries as of 2026, and 310 worldwide locations at the end of 2020. The 2020 count included 168 units in the United States, 69 in China, and 46 in Latin America. International expansion began by 1959 with a lodge and restaurant in Nassau, Bahamas. By the late 1960s, the company pursued overseas locations through franchise and licensing agreements. In 1999, an international master franchise agreement covered Austria, Belgium, Germany, Luxembourg, the Netherlands, Portugal, Spain, and Switzerland, with plans to develop nearly 40 hotels over five years beginning in 2001. Howard Johnson International Inc. was incorporated in Delaware on May 15, 1990. Before the 2006 Wyndham Hotels & Resorts acquisition, ownership included Imperial Group Ltd. in 1979, Marriott Corp. in 1985, Prime in 1990, Blackstone Capital Partners L.P. in 1990, and Hospitality Franchise Systems Inc., or HFS Inc., in 1992. HFS later became Cendant Corporation. The current President of Howard Johnson by Wyndham is Anthony Pizzuto. Brand recognition developed over nearly a century, supported by the company’s early restaurant franchising and motor lodge expansion. Wyndham provides access to a global reservation system, loyalty program, marketing resources, and a scaled supply chain. Howard Johnson also uses Wyndham digital platforms, loyalty initiatives, and training programs. The brand has operated in the mid market segment across North America, South America, Asia, and the Middle East. Properties have been found in the U.S., Canada, Mexico, Malta, Romania, Argentina, Colombia, Guatemala, Dominican Republic, Dutch Antilles, Ecuador, Peru, Venezuela, Israel, Jordan, Oman, United Arab Emirates, China, and India.
An appropriate Howard Johnson franchisee should have sound business judgment and be prepared to manage the details of a mid market hotel. Prior hospitality experience is not specifically required, but management, customer service, or real estate development experience may help with daily operations. Wyndham’s training and support provide operating resources, while an active owner operator approach may be useful during the early ownership period. Multi unit requirements are not specified. The broader Wyndham system often encourages experienced operators to add properties, creating a possible expansion path for successful franchisees. Available territories span North America, South America, Asia, and the Middle East. Historical markets include the U.S., Canada, Mexico, Malta, Romania, Argentina, Colombia, Guatemala, Dominican Republic, Dutch Antilles, Ecuador, Peru, Venezuela, Israel, Jordan, Oman, United Arab Emirates, China, and India. The 1999 master franchise agreement covering Austria, Belgium, Germany, Luxembourg, the Netherlands, Portugal, Spain, and Switzerland included plans for nearly 40 hotels. Specific market performance data is not disclosed. High traffic areas, established tourist destinations, and developing business hubs are generally relevant locations for a mid market hotel. The Howard Johnson franchise agreement term is 5 years. Renewal terms, transfer policies, and resale provisions are not provided in the available information and should be reviewed directly with the franchisor.
Howard Johnson combines a long operating history with a hotel franchise position inside Wyndham Hotels & Resorts. Its mid market focus serves travelers who may prioritize value, comfort, and consistent service. The global hotel market is projected to grow from USD 2,080.57 billion in 2025 to USD 3,931.42 billion by 2034 at a 7.54 percent compound annual growth rate. The stated franchise fee is $35,000, and the total initial investment range is $531,500 to $7.50 million, depending on the property and project scope. Training, marketing resources, and Wyndham support are part of the system. PeerSense provides franchise due diligence data that includes SBA lending history, Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders, rather than a lender itself.
Loan Activity Score
56/100
SBA Default Rate
11.5%
Active Lenders
152
According to its Franchise Disclosure Document or public business records, Howard Johnson has 139 locations, all owned by franchisees. Public SBA loan records show 152 lenders made 349 loans to franchisees of Howard Johnson. PeerSense calculates Howard Johnson's score as 56 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2026 Franchise Disclosure Document.
Franchising since 1925 · 139 locations
$347,215 to $6.7M
$35,000
139
139 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Howard Johnson
349
Total SBA loans
$1.3M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Howard Johnson
Loan Activity Score Breakdown
Major Brand (100+ loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
11.5%
vs 10.3% peer avg
SBA Loans
349
Total Volume
$464.5M
Active Lenders
152
19 selective
States
39
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Howard Johnson based on SBA lending data
SBA Default Rate
11.5%
1.2% above peer avg
SBA Loan Volume
349 loans
Across 152 lenders
Lender Diversity
152 lenders
Avg 2.3 loans per lender
Investment Tier
Premium investment
$347,215 to $6,681,950 total
Howard Johnson: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2008
21 approvals. The best year on record for Howard Johnson.
Top SBA State
Texas
42 SBA financed Howard Johnson locations, the densest operator footprint.
Average Loan Size
$1.3M
Median $2.5M. Use as a sizing anchor when modeling your own Howard Johnson unit.
Lender Concentration
13.2%
Highly Diversified
Share of Howard Johnson approvals captured by the top 3 SBA lenders.
Howard Johnson's SBA lending pipeline peaked in 2008 (21 approvals). The last five fiscal years account for 3% of cumulative volume ($35M approved). Operator density is highest in Texas with 42 SBA financed locations. Average funded ticket sits at $1.3M, with the median at $2.5M. Lender mix is highly diversified: the top three SBA lenders account for 13.2% of approvals. Borrowers have leverage to shop multiple credit boxes.
Payment Estimator
Estimated Monthly Payment
$3,594
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Howard Johnson, unit breakdown
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman