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Howard Johnson

2014 Franchise 500
#189
At a Glance

Products & Services: Hotels

Number of Locations: 449

Total Investment: $184.7K - $8.2M

Founded: 1925

Began Franchising: 1954

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.

Franchise Units

Year U.S. Canadian International Company Owned
2014 294 61 94 0
2013 295 60 90 0
2012 300 64 81 0
2011 312 67 83 0
2010 338 62 77 0
Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $184,670 - $8,202,000
Franchise Fee: $35,000
Ongoing Royalty Fee: 4.5%
Term of Franchise Agreement: 15-20 years
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

Franchise Ranking History

Franchise 500®: #189 (2014), #222 (2013), #215 (2012), #172 (2011), #112 (2010),
America's Top Global: #127 (2013), #169 (2012), #135 (2011), #92 (2010),