travel-hospitality · FDD 2024 · HQ GA

Holiday Inn Franchise

A IHG Hotels & Resorts brand operating in the travel-hospitality sector, franchising since 1953. Financial profile from publicly filed FDDs.

$9.0M – $22.0M
Initial investment
5.0%
Royalty rate
2,800
Total locations

The verdict

Holiday Inn needs $9.0M–$22.0M to open and charges a 5.0% royalty - an entry cost above the typical travel-hospitality franchise.

$50K
Franchise fee (Item 5)
5.0%
Royalty of gross sales (Item 6)
3.0%
Ad-fund contribution
2,800
Locations (Item 20)

Figures from Holiday Inn's publicly filed Franchise Disclosure Document (2024).

Investment Overview

Investment Range $9.0M – $22.0M
Total Investment
$9.0M – $22.0M
Franchise Fee
$50K
Royalty Rate
5.0%
Ad Fund Rate
3.0%

Revenue Data (Item 19)

Item 19 Not Disclosed

This franchisor did not provide financial performance data in their FDD. This is common, disclosure is optional.

Network Size & Growth

2,800
Total Locations
2,800
Franchised
+80
Opened (Last Year)

Net Growth Rate

Year-over-year unit change

0.71% growth

60 locations closed in the last reporting year

Quick Facts

Subsector
mid scale hotel
Founded
1952
Franchising Since
1953
Headquarters
GA
FDD Year
2024
Item 19
Not Disclosed

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Important Notice

Data sourced from publicly available FDD filings. Not financial advice. Consult a franchise attorney and accountant before investing. Past performance does not guarantee future results.

What the Holiday Inn FDD Reveals

Holiday Inn, a IHG Hotels & Resorts franchise, has been franchising since 1953 - 1 years after the concept was founded in 1952 , currently with 2,800 total locations in the travel-hospitality sector, headquartered in GA. Per the 2024 FDD, budget a total initial investment of $9.0M to $22.0M, with the 144% low-to-high spread driven mainly by site size, market, and how extensive the buildout runs. That total bundles the franchise fee of $50K together with equipment, leasehold buildout, and the working capital needed to get through ramp-up.

Ongoing royalties run 5.0% of gross sales, plus a 3.0% national ad-fund contribution on top -- 8.0% combined out of every sales dollar. No Item 19 financial performance data is disclosed for Holiday Inn; the FTC Franchise Rule makes that disclosure optional, and plenty of franchisors skip it. Prospective buyers should compensate by calling Item 20 contacts, building their own unit-economics model from comparable brands, and insisting on real profit-and-loss numbers before signing.

The unit count trend here is positive -- Holiday Inn posted 0.7% net growth year-over-year (80 openings, 60 closures). Consistent expansion usually means the unit model pencils out for new owners, but a late-cycle growth spike can also come from an aggressive sales push rather than genuinely strong store-level economics.

Frequently Asked Questions

How much does a Holiday Inn franchise cost?
Budget $9.0M to $22.0M in total initial investment to open a Holiday Inn franchise. That includes an initial franchise fee of $50K. On top of that, royalties run 5.0% of gross sales.
What is the ROI for a Holiday Inn franchise?
Holiday Inn does not disclose financial performance data (Item 19) in their FDD. ROI varies significantly by location, market, and operator. Contact existing franchisees for firsthand financial information.
How many Holiday Inn locations are there?
Holiday Inn has 2,800 total locations (2,800 franchised). Year-over-year, the unit count is up 0.7%.
What are the ongoing fees for a Holiday Inn franchise?
Holiday Inn's ongoing royalty is 5.0% of gross sales. On top of that, a 3.0% ad-fund contribution applies. These are ongoing costs beyond the initial buy-in, and they vary somewhat by location; the full fee details live in Items 6 and 7 of the FDD.
Is Holiday Inn a good franchise to buy?
Deciding if Holiday Inn is a good fit rests on factors specific to you: your financial situation, local market conditions, and your business goals. Unit count is currently up 0.7% year-over-year. Before committing, work through the standard diligence checklist -- full FDD review, Item 20 franchisee interviews (current and former), independent verification of financial claims, and a franchise attorney's review.

How Holiday Inn compares to the travel-hospitality sector

Holiday Inn's costs vs the average across 7 travel-hospitality brands tracked here.

Initial investment (low)
$9.0M
Sector avg $3.9M · +129%
Royalty rate
5.0%
Sector avg 5.0% · 0 pts
Franchise fee
$50K
Sector avg $40K · +24%

Sector averages computed across all tracked travel-hospitality brands from FDD Items 5–7 (FDD year 2024).

Understanding franchise investment (click to expand)
Data sourced from official state franchise disclosure registries and FDD filings. See our methodology for details. Retrieved and formatted by PlainFranchise Editorial

Source: Franchise Disclosure Documents (FDDs) Initial investment, franchise fee, royalty, and Item 19 revenue data from FDD Items 5-7 and 19 · 2024

Every figure on PlainFranchise is rendered directly from Franchise Disclosure Document (FDD) source data, no number is typed in by an editor. This page draws directly on Franchise Disclosure Document (FDD) source data, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error.