Several factors affect the price of a KOA franchise. The initial investment might be anywhere between $1.5 million and $3 million, depending on the campground’s location, size, and facilities. A franchise fee of $30,000 to $50,000 will also be due. You will also need to pay a monthly marketing cost of 2% of your gross income in addition to a royalty fee of 8% of your gross revenue.
The initial investment pays for purchasing property, constructing or remodeling facilities, buying equipment, and hiring personnel. It is important to remember that the price of buying land might vary significantly based on where it is located and how big the campground will be. For instance, land in a well-known tourist location, such a national park or a beach resort, will cost more than land in a rural area.
You will get support and training from the company as a KOA franchisee to aid in the effective operation of your business. You’ll get access to the KOA reservation system, which lets you control reservations, keep tabs on sales, and keep an eye on occupancy rates. Additionally, you will receive marketing assistance, such as advertising and promotional materials, to aid in drawing visitors to your campground.
In conclusion, business owners who love the outdoors and camping may find financial success by investing in a KOA franchise. Before selecting a choice, it is crucial to fully comprehend the fees involved and to do extensive research. You must make a $1.5 million to $3 million initial investment for a KOA franchise, in addition to paying a franchise fee, monthly royalty fee, and marketing fee. Before making an investment in a campground franchise, it is crucial to carefully analyze the location, amenities, and competition. KOA can give you with the support and training you need to manage a successful business.