Magnuson Hotels Franchise Review 2025: Ratings & Verdict

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Magnuson Hotels fits owner-operators looking for an emerging hospitality concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$175K - $400K

Franchise fee (Item 5)

$10K

Royalty (Item 6)

8%

System size (Item 20)

11 +2

Agreement term

5 yrs

Item 3 litigation

None disclosed

Model Magnuson Hotels's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2025 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 8% on gross sales.

PROJECTED ANNUAL SALES$500,000

$100k$2M

Royalty (8%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

11

Total units open

2

Units opened last year

1

Units closed last year

+2

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2025 filing.

5

Risks to review

3

Strengths identified

4

Questions to ask

Industry Benchmarks

How Magnuson Hotels ranks against 81 Hospitality & Travel peers we've analyzed.

Initial investment

17th pct · of 81 peers

Franchise fee

12th pct · of 81 peers

System size

31st pct · of 81 peers

Hospitality & Travel industry averages

Avg investment

$7.6M - $24.5M

Avg franchise fee

$42K

Avg system size

241

Franchises analyzed

81

How Magnuson Hotels stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Magnuson Hotels Disclosed $10K $175K - $400K 8% 11
Cruiseshipcenters USASimilar price Disclosed $49K $149K - $259K 9% 93
CpBiggest system Disclosed $11K $2K - $21K 1.5–3% 3,124
TaTop-rated in category None $140K $1.5M - $14.1M 2–4.5% 33

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Magnuson Hotels franchise cost?

Magnuson Hotels requires a $10,000 initial franchise fee and a total initial investment range of $175,000–$400,000, per the most recent FDD on file.

Who owns Magnuson Hotels?

Magnuson Hotels is franchised by Magnuson Franchising, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.

Does Magnuson Hotels disclose financial performance (Item 19)?

Yes. Magnuson Hotels discloses Item 19 financial performance representations in its FDD. See the financials sub-page for the disclosed figures.

What ongoing fees does Magnuson Hotels charge?

Franchisees pay a royalty of 8% on gross sales as defined in Item 6 of the FDD.

How many Magnuson Hotels locations are there?

As of their 2025 FDD, Magnuson Hotels has 11 total locations, with 2 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Magnuson Hotels grant exclusive territory?

No. Magnuson Hotels does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, Magnuson Hotels discloses an initial agreement term of 5 years. Review Items 10 and 17 for the full renewal and termination provisions.

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