- 2023 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$10.8M - $16.5M
- Units as of 2022
363 9% 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.
About Candlewood Suites
|Franchising Since||1996 (2023-1996 years)|
|# of employees at HQ||1,400|
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
|# of Units||363 (as of 2022)|
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.
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.
|$10,758,000 - $16,467,976|
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.
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|
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.
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
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.
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.
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.
Interested in ownership opportunities like Candlewood Suites? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Candlewood Suites landed on this year's Franchise 500 Ranking versus previous years.
Are you eager to see what else is out there? Browse franchises that are similar to Candlewood Suites.
Pillar To Post Home Inspectors
- Home inspections
Holiday Inn and Holiday Inn Express
Hilton Garden Inn
- Upscale midprice hotels
- Indoor running studios
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
Subway Struggles to Attract Multi-Unit Franchisees in the U.S., Announces Major Expansion in Another Country
Subway has been attempting to sign new franchisees to multi-unit deals to improve its ownership model. However, the franchisees it's looking for aren't taking the bait.
How to Effectively Utilize Video in Your Franchise Brand's Marketing Strategy
Knowing where to focus your effort will help you in many ways.
What Makes Scenthound a Top New & Emerging Franchise
Focusing on out what dogs and their owners actually need helped Scenthound CEO Tim Vogelcreate a successful franchise system.
How to Harness the Power and Money of a Crowd Through Crowdfunding
You don't have to be rich, succumb to ever-growing interest rates, run the risk of your bank collapsing or use your house as collateral to build a franchise. All you have to do is find the right crowd.
Woman Ties the Knot at White Castle Almost 30 Years After the Chain Gave Her Free Food as a Homeless Teen
Jamie West was just 12 years old when she ran away from the foster care system.
Franchise Ownership Made Easy: Best Practices for Managing and Growing Your Business
Using these tips, you can maximize the benefits of franchise ownership and take your business to the next level.