Start a Candlewood Suites Franchise in 2025

2025 Franchise 500 Rank: #221 Ranked #264 last year

Initial investment: $13.4M - $19.5M

Units as of 2024: 384 6.7% over 3 years

Candlewood Suite opened its first branch hotel in 1995. The following year, franchising began. The company opened the first international Candlewood Suite in 2007 in Montreal, Canada. Currently, there are over 400 Candlewood Suite branches all across the country, with many more hotels currently in planning stages.

Why You May Want to Start a Candlewood Suites Franchise

Candlewood Suites is committed to providing guests with all of the convenience they are used to at home. Suites consist of completely stocked kitchens, a workspace, a television with a DVD player, access to free Wi-Fi, close laundry equipment, pleasant living room furniture, and a comfortable bed.

Candlewood Suites is a popular choice amongst guests who are business travelers because of the comfort it offers. The company is intent on having its customers return because of the cleanliness, and the reasonable prices offered. Candlewood Suites also has a Candlewood Cupboard where guests can get food and snacks whenever the urge strikes.

Candlewood Suites are relatively easy to run. Franchisees should be available to operate the business, but hiring executive managers may be beneficial to franchisees. However, absentee ownership is not an option; franchisees are expected to be involved.

What Might Make Candlewood Suites a Good Choice?

To be part of the Candlewood Suites team, you should make sure you’re financially ready for an initial investment, including a franchise fee and other potential startup fees. These fees will include royalty fees, as well as potential franchise renewal fees. Franchisees may also need to meet the company's set net worth and liquid capital requirements. Candlewood Suites has partnered with third-party services in order to offer franchisees financial help with costs, including the franchise fee and other startup costs.

Like any other franchising business, Candlewood Suites requires franchising payments. Franchisees may need to pay two separate fees in management standard contracts: base and incentive fees. These fees are dependent on the franchise location.

With your investment in Candlewood Suites, franchisees receive training, a marketing program, and consultation services as operations begin. It can also be worthwhile if, as a franchisee, you join the Intercontinental Hotels Group (IGH), an association of hotel owners worldwide. There, other hotel owners can give you practical tips on how to run your business.

How to Open a Candlewood Suites Franchise

As you decide whether you wish to open a Candlewood Suites franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. If there are multiple hotels around the location, then opening a Candlewood Suites in that area may not be beneficial.

Once you have decided that you would like to open a Candlewood Suites franchise, you are required to download and read the franchise advice form. This form will include details about the approximate startup cost, timeframe, and more.

After an inquiry to Candlewood Suites, an executive may call you to evaluate your franchisee requirements and the location of choice. If your request is accepted, the franchise executive will talk you through the particulars of the Franchise Disclosure Document. If confirmed as a franchisee, you will sign a contract before operating a Candlewood Suites.

Company Overview

About Candlewood Suites

Industry	Lodging
Related Categories	Hotels & Motels
Founded	1995
Parent Company	IHG Hotels & Resorts
Leadership	Jolyon Bulley, CEO, Americas
Corporate Address	Three Ravinia Dr., #100 Atlanta, GA 30346
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube

Business Overview

Franchising Since	1996 (29 years)
# of employees at HQ	1,711
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Canada, Mexico
# of Units	384 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a Candlewood Suites franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$50,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$13,413,650 - $19,461,750
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5.5%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	20 years (average)
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	Candlewood Suites has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	Varies
Classroom Training	Varies
Ongoing Support	Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Ad Templates National Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No