- 2023 Franchise 500 Rank
#54 Ranked #99 last year
- Initial investment
$11.6M - $17M
- Units as of 2022
222 188.3% over 3 years
Tru by Hilton was founded in 2015 by Hilton Hotels Brands as a brand of hotels operating in the midscale hotel market. The company began franchising one year later. The Tru by Hilton franchise sets out as a game-changing brand looking to meet the needs of customers who are seeking a fun and affordable hotel stay.
Since its formation, Tru by Hilton has strived to offer customers a unique hotel experience with cross-generational appeal. In 2019, the franchise had grown to over 125 properties and over 11,200 rooms, signifying its fast growth.
Reimagining the public workspace to fit modern customer needs is Tru by Hilton’s main attraction. An ideal Tru by Hilton’s franchisee is anyone keen on providing quality service and creating a fun and conducive environment.
Why You May Want to Start a Tru by Hilton Franchise
Tru by Hilton’s franchisees are expected to advance the brand’s solid reputation and unique offerings by upholding quality service and appeal. Tru by Hilton features distinct modern aspects that make it a robust hotel franchise compared to the competition.
Each Tru by Hilton franchise is made by first considering a social area featuring a sizable centralized lobby nicknamed “The Hive.” The Hive is the heart of operations at a Tru by Hilton unit, as customers can enjoy multiple offers, such as eating, working, playing, and lounging.
The brand goes further by including a “Command Center,” or the front desk, where social media engages guests. The Tru by Hilton franchise reimagines the mid-range hotel market, aiming to give customers more for less.
What Might Make Tru by Hilton Franchise a Good Choice?
The investment cost varies, so to be part of the Tru by Hilton team, you should make sure you’re financially ready for an initial investment that will include a franchise fee and startup fees. You’ll also want to make sure you have enough capital available to cover possible ongoing fees. These ongoing fees might include royalty percentages, ad fees, or even renewal fees. A typical term of agreement runs for a renewable period of 22 years.
As a brand connected to the reputable Hilton Worldwide family, Tru by Hilton franchisees can benefit from Hilton’s relationship with third-party financiers to cover startup, franchise fees, payroll, equipment, and accounts receivable.
How to Open Your Own Tru by Hilton Franchise
As you make your decision regarding whether to start a Tru by Hilton 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. While competition is healthy, too many hotels in a single area may not set your franchise up for success.
After you've decided to go for the franchise, you'll need to apply. If the company approves your application, you'll need to go through training. Since Tru by Hilton aims to standardize the quality of service and standards across all units, classroom training of over 100 hours is necessary for all franchisees. Additional on-the-job training may last for a few hours.
Support options offered include purchasing co-ops, grand opening, a tool-free line, meetings & conventions. Tru by Hilton also provides marketing support for franchisees, facilitating co-op advertising, national & social media, loyalty program/app, and website development.
About Tru by Hilton
- Related Categories
- Hotels & Motels
- Parent Company
- Christopher Nassetta, CEO
- Corporate Address
7930 Jones Branch Dr.
McLean, VA 22102
- Franchising Since
- 2016 (2023-2016 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees in the following international regions: Central America, Canada, South America, Mexico
- # of Units
- 222 (as of 2022)
Information for Franchisees
Here's what you need to know if you're interested in opening a Tru by Hilton 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.
- Initial Investment
- $11,588,983 - $17,028,467
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.
- Veteran Incentives
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- 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.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 22 years
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.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Tru by Hilton 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
- 8 hours
- Classroom Training
- 174-182 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
- 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 Tru by Hilton? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Tru by Hilton landed on this year's Franchise 500 Ranking versus previous years.
Curious to know where Tru by Hilton ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Tru by Hilton.
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