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Howard Johnson

2012 Franchise 500
#215
At a Glance

Products & Services: Hotels

Number of Locations: 462

Total Investment: $189.57K - 7.33M

Founded: 1925

Began Franchising: 1954

Public Owned WYN - Wy

About Howard Johnson

With a loan of $500, Howard Dearing Johnson purchased a small patent medicine shop in Quincy, Massachusetts, in 1925. He used an old-fashioned, hand-cranked freezer in the store's basement to make vanilla, chocolate and strawberry ice cream for the shop's soda fountain. Three years later, with menu additions like hot dogs and hamburgers, he opened the first Howard Johnson's Restaurant.

By 1935, there were 25 Howard Johnson ice cream and sandwich stands in Massachusetts. Five years later, with more than 100 restaurants on the Atlantic Coast, Johnson opened the first turnpike restaurant on the Pennsylvania Turnpike. In 1954, when the company operated 400 restaurants, the first Howard Johnson hotel opened in Savannah, Georgia.

After Johnson's son took over the company in 1959, it was subsequently acquired by three different companies before Cendant Corp. bought the hotel chain in 1990. Howard Johnson Int'l. franchises offer mid-priced lodging at Howard Johnson Plaza Hotels, Howard Johnson Hotels, Howard Johnson Inns and Howard Johnson Express Inns. Children stay free at Howard Johnson, and Road Rally and AARP offer senior discounts at the hotels.

Franchise Units

Year U.S. Canadian International Company Owned
2011 312 67 83 0
2010 338 62 77 0
2009 348 56 71 0
2008 367 40 63 0
Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $189,570 - $7,328,060
Franchise Fee: $36,000
Ongoing Royalty Fee: 4%
Term of Franchise Agreement: 15-20 years
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

Franchise Ranking History

Franchise 500®: #215 (2012), #172 (2011), #112 (2010), #144 (2009), #161 (2008),
America's Top Global: #169 (2012), #135 (2011), #92 (2010), #112 (2009), #149 (2008),