In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Grand Welcome franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Grand Welcome franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Grand Welcome outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Grand Welcome franchise opportunity

Section V – Presentation and analysis of Grand Welcome’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average number of units managed, average daily rate, average length of stay, average monthly occupancy (guests only), number of paying reservations, average annual unit gross revenue for the 6 Grand Welcome outlets (5 corporate and 1 franchised) that continuously operated during the entire 2021 calendar year

• 2021 gross revenue, cost of goods sold, property costs, operating expenses and franchise fees, and net franchise profit for the 6 Grand Welcome outlets (5 corporate and 1 franchised) that continuously operated during the entire 2021 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Grand Welcome franchise opportunity (exclusive content for Platinum subscribers)

Section I – Grand Welcome Franchise Costs

• Grand Welcome franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $19,000 to $109,000
• Initial Data Collection Fee:  $500 to $2,500
• Your Training Expenses:  $1,000 to $3,000
• Office Lease Deposit:  $0 to $1,000
• Office Furniture, Fixtures, Equipment, and Supplies:  $0 to $1,500
• Licenses and Permits:  $150 to $500
• Real Estate Brokerage License:  $0 to $3,000
• Computer Systems:  $500 to $1,500
• Vehicle:  $0 to $3,500
• Vehicle Graphics:  $250 to $500
• Branding and Promotional Materials:  $250 to $750
• Professional Fees:  $250 to $3,000
• Insurance:  $1,000 to $3,000
• Operating Expenses/Additional Funds – 3 Months:  $15,000 to $35,000
• Total Estimated Grand Welcome Franchise Costs:  $37,900 to $167,750

Section II – Grand Welcome’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Grand Welcome’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $19,000 to $109,000, depending on the potential territory revenue expected in the territory
• Royalty Fee:  8% of Net Revenue per month
• Local Unit Owner Targeted Marketing Expenditure:  Tier 1: $500; Tier 2: $1,500; Tier 3: $2,000; Tier 4: $2,500
• Brand Fund Contribution:  1% of Net Revenue per month, subject to increases not to exceed 3% annually

Section III – Number of Franchised and Company-Owned Grand Welcome Outlets

Franchised

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  3
• Net Change:  +3

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  6
• Net Change:  +3

Company-Owned

2019

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  10
• Net Change:  +2

2020

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  8
• Net Change:  -2

2021

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  5
• Net Change:  -3

Section IV – News Updates on the Grand Welcome Franchise

• Grand Welcome Doubles Growth Goals in the Year of 2022

• Grand Welcome Announces It Has Surpassed 750 Short-term Vacation Rental Properties in the U.S.

• Grand Welcome Named One of 2022’s Top New and Emerging Franchises by Entrepreneur

• Grand Welcome Did Not Rank on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Grand Welcome Franchise (Item 19, 2022 FDD)

• This Item contains a historic financial performance representation about Grand Welcome’s existing affiliate-owned outlets in 2021.

• As of December 31, 2021, Grand Welcome had 11 territory outlets in operation. At the end of the year, Grand Welcome had 5 corporate outlets and 1 franchised outlet in operation. 5 franchise territory outlets were excluded because they were not open for a full year.

• The following table shows Key Performance Indicators (KPI’s), Gross Revenues, and Costs information for Grand Welcome’s Operating Affiliates’ 5 territories, which continuously operated during the entire 2021 calendar year. Grand Welcome’s affiliate’s operation in Hawaii consists of 3 territories; however, financial information is provided to Grand Welcome in a single, consolidated report.

Lake Tahoe

• Territory Size:  Tier 4
• Number of Units Managed:  182
• Average Daily Rate:  $393
• Average Length of Stay:  4
• Average Monthly Occupancy (guests only):  33%
• Number of Paying Reservations:  4,695
• Average Annual Unit Gross Revenue:  $52,487

Revenue

• Rental Income:  $7,170,037
• Cleaning Fee:  $1,733,173
• Reservation Fee:  $1,019,534
• Other Fees:  $147,805
• Taxes:  $755,096
• Gross Revenue:  $10,825,646

Cost of Goods Sold

• Taxes:  $755,096
• Guest Targeted Marketing Fee:  $571,975
• Property Owner’s Revenue Share:  $6,079,883
• Net Revenue:  $3,418,692

Property Costs

• Maintenance Costs:  $338,346
• Property Owner Maintenance Chargebacks:  $298,001
• Cleaning Costs:  $1,457,202

Gross Profit:  $1,921,145

Operating Expenses and Franchise Fees

• General Manager:  $120,000
• Rent:  $27,653
• Insurance:  $15,000
• Payroll:  $25,456
• Payroll Taxes and Benefits:  $17,921
• Accounting Fees:  $5,000
• Travel, Meals, and Entertainment:  $8,303
• Utilities:  $4,419
• Marketing:  $25,552
• Telephone:  $631
• Office Expense:  $18,236
• Local Taxes, Fees, and Permits:  $66,358
• Local Unit Owner Target Marketing Expenditure:  $30,000
• Brand Advertising Contribution:  $34,187
• Guest Services Support Fee:  $70,425
• Technology Fee:  $65,520
• Royalty Fee:  $273,495
• Total Operating Expenses and Franchise Fees:  $808,157

Net Franchise Profit:  $1,112,988

Net Revenue to Net Franchise Profit:  33%

Gross Revenue to Gross Franchise Profit:  10%

Mammoth

• Territory Size:  Tier 4
• Number of Units Managed:  101
• Average Daily Rate:  $182
• Average Length of Stay:  4
• Average Monthly Occupancy (guests only):  28%
• Number of Paying Reservations:  2,726
• Average Annual Unit Gross Revenue:  $26,765

Revenue

• Rental Income:  $1,781,928
• Cleaning Fee:  $654,613
• Reservation Fee:  $339,811
• Other Fees:  $79,514
• Taxes:  $356,951
• Gross Revenue:  $3,212,816

Cost of Goods Sold

• Taxes:  $356,951
• Guest Targeted Marketing Fee:  $168,705
• Property Owner’s Revenue Share:  $1,318,159
• Net Revenue:  $1,369,001

Property Costs

• Maintenance Costs:  $50,129
• Property Owner Maintenance Chargebacks:  $52,809
• Cleaning Costs:  $423,292

Gross Profit:  $948,389

Operating Expenses and Franchise Fees

• General Manager:  $70,000
• Rent:  $48,576
• Insurance:  $15,000
• Payroll:  $68,192
• Payroll Taxes and Benefits:  $16,385
• Accounting Fees:  $5,000
• Travel, Meals, and Entertainment:  $607
• Utilities:  $5,176
• Marketing:  $3,318
• Telephone:  $1,395
• Office Expense:  $7,047
• Local Taxes, Fees, and Permits:  $735
• Local Unit Owner Target Marketing Expenditure:  $30,000
• Brand Advertising Contribution:  $13,690
• Guest Services Support Fee:  $40,890
• Technology Fee:  $36,360
• Royalty Fee:  $109,520
• Total Operating Expenses and Franchise Fees:  $471,890

Net Franchise Profit:  $476,499

Net Revenue to Net Franchise Profit:  35%

Gross Revenue to Gross Franchise Profit:  15%

Sea Ranch

• Territory Size:  Tier 2
• Number of Units Managed:  38
• Average Daily Rate:  $402
• Average Length of Stay:  4
• Average Monthly Occupancy (guests only): 44%
• Number of Paying Reservations:  1,759
• Average Annual Unit Gross Revenue:  $88,980

Revenue

• Rental Income:  $2,516,849
• Cleaning Fee:  $475,911
• Reservation Fee:  $490,558
• Other Fees:  $74,377
• Taxes:  $328,572
• Gross Revenue:  $3,886,267

Cost of Goods Sold

• Taxes:  $328,572
• Guest Targeted Marketing Fee:  $195,889
• Property Owner’s Revenue Share:  $2,018,712
• Net Revenue:  $1,343,094

Property Costs

• Maintenance Costs:  $107,130
• Property Owner Maintenance Chargebacks:  $111,424
• Cleaning Costs:  $417,714

Gross Profit:  $929,674

Operating Expenses and Franchise Fees

• General Manager:  $70,000
• Rent:  $17,950
• Insurance:  $15,000
• Payroll:  $68,277
• Payroll Taxes and Benefits:  $18,414
• Accounting Fees:  $5,000
• Travel, Meals, and Entertainment:  $1,385
• Utilities:  $8,818
• Marketing:  $3,030
• Telephone:  $1,870
• Office Expense:  $6,236
• Local Taxes, Fees, and Permits:  $200
• Local Unit Owner Target Marketing Expenditure:  $18,000
• Brand Advertising Contribution:  $13,431
• Guest Services Support Fee:  $26,385
• Technology Fee:  $13,680
• Royalty Fee:  $107,447
• Total Operating Expenses and Franchise Fees:  $395,123

Net Franchise Profit:  $534,551

Net Revenue to Net Franchise Profit:  40%

Gross Revenue to Gross Franchise Profit:  14%

Hawaii

• Territory Size:  Tier 4
• Number of Units Managed:  101
• Average Daily Rate:  $206
• Average Length of Stay:  8
• Average Monthly Occupancy (guests only):  46%
• Number of Paying Reservations:  1,809
• Average Annual Unit Gross Revenue:  $37,113

Revenue

• Rental Income:  $2,942,211
• Cleaning Fee:  $461,263
• Reservation Fee:  $492,102
• Other Fees:  $66,614
• Taxes:  $557,877
• Gross Revenue:  $4,520,067

Cost of Goods Sold

• Taxes:  $557,877
• Guest Targeted Marketing Fee:  $236,403
• Property Owner’s Revenue Share:  $2,333,040
• Net Revenue:  $1,392,747

Property Costs

• Maintenance Costs:  $295,171
• Property Owner Maintenance Chargebacks:  $384,501
• Cleaning Costs:  $367,503

Gross Profit:  $1,114,574

Operating Expenses and Franchise Fees

• General Manager:  $90,000
• Rent:  $63,061
• Insurance:  $15,000
• Payroll:  $166,171
• Payroll Taxes and Benefits:  $28,544
• Accounting Fees:  $5,000
• Travel, Meals, and Entertainment:  $1,476
• Utilities:  $5,255
• Marketing:  $5,251
• Telephone:  $3,470
• Office Expense:  $12,281
• Local Taxes, Fees, and Permits:  $3,155
• Local Unit Owner Target Marketing Expenditure:  $30,000
• Brand Advertising Contribution:  $13,927
• Guest Services Support Fee:  $27,135
• Technology Fee:  $36,360
• Royalty Fee:  $111,420
• Total Operating Expenses and Franchise Fees:  $617,507

Net Franchise Profit:  $497,067

Net Revenue to Net Franchise Profit:  36%

Gross Revenue to Gross Franchise Profit:  11%

Santa Barbara

• Territory Size:  Tier 4
• Number of Units Managed:  8
• Average Daily Rate:  $407
• Average Length of Stay:  14
• Average Monthly Occupancy (guests only):  47%
• Number of Paying Reservations:  91
• Average Annual Unit Gross Revenue:  $90,340

Revenue

• Rental Income:  $588,801
• Cleaning Fee:  $50,839
• Reservation Fee:  $91,408
• Other Fees:  $44,004
• Taxes:  $40,964
• Gross Revenue:  $816,016

Cost of Goods Sold

• Taxes:  $40,964
• Guest Targeted Marketing Fee:  $56,410
• Property Owner’s Revenue Share:  $471,163
• Net Revenue:  $247,479

Property Costs

• Maintenance Costs:  $44,647
• Property Owner Maintenance Chargebacks:  $13,098
• Cleaning Costs:  $37,557

Gross Profit:  $178,373

Operating Expenses and Franchise Fees

• General Manager:  $55,000
• Rent:  $2,434
• Insurance:  $5,000
• Payroll:  $0
• Payroll Taxes and Benefits:  $0
• Accounting Fees:  $5,000
• Travel, Meals, and Entertainment:  $0
• Utilities:  $0
• Marketing:  $799
• Telephone:  $43
• Office Expense:  $1,217
• Local Taxes, Fees, and Permits:  $619
• Local Unit Owner Target Marketing Expenditure:  $30,000
• Brand Advertising Contribution:  $2,475
• Guest Services Support Fee:  $1,365
• Technology Fee:  $2,880
• Royalty Fee:  $19,798
• Total Operating Expenses and Franchise Fees:  $126,630

Net Franchise Profit:  $51,743

Net Revenue to Net Franchise Profit:  21%

Gross Revenue to Gross Franchise Profit:  6%

Newport Beach

• Territory Size:  Tier 4
• Number of Units Managed:  14
• Average Daily Rate:  $564
• Average Length of Stay:  8
• Average Monthly Occupancy (guests only):  46%
• Number of Paying Reservations:  303
• Average Annual Unit Gross Revenue:  $113,470

Revenue

• Rental Income:  $1,316,289
• Cleaning Fee:  $156,641
• Reservation Fee:  $152,570
• Other Fees:  $44,291
• Taxes:  $152,677
• Gross Revenue:  $1,822,468

Cost of Goods Sold

• Taxes:  $152,677
• Guest Targeted Marketing Fee:  $90,319
• Property Owner’s Revenue Share:  $1,128,956
• Net Revenue:  $450,516

Property Costs

• Maintenance Costs:  $34,551
• Property Owner Maintenance Chargebacks:  $29,700
• Cleaning Costs:  $123,611

Gross Profit:  $322,054

Operating Expenses and Franchise Fees

• General Manager:  $80,858
• Rent:  $10,251
• Insurance:  $4,237
• Payroll:  $0
• Payroll Taxes and Benefits:  $8,138
• Accounting Fees:  $19,467
• Travel, Meals, and Entertainment:  $5,203
• Utilities:  $0
• Marketing:  $47,375
• Telephone:  $1,165
• Office Expense:  $998
• Local Taxes, Fees, and Permits:  $0
• Local Unit Owner Target Marketing Expenditure:  $30,000
• Brand Advertising Contribution:  $4,505
• Guest Services Support Fee:  $4,545
• Technology Fee:  $5,040
• Royalty Fee:  $36,041
• Total Operating Expenses and Franchise Fees:  $257,823

Net Franchise Profit:  $64,231

Net Revenue to Net Franchise Profit:  14%

Gross Revenue to Gross Franchise Profit:  4%

Average

• Number of Units Managed:  74
• Average Daily Rate:  $359
• Average Length of Stay:  7
• Average Monthly Occupancy (guests only):  41%
• Number of Paying Reservations:  1,897
• Average Annual Unit Gross Revenue:  $68,192

Revenue

• Rental Income:  $2,719,352 (65.0%)
• Cleaning Fee:  $588,740 (14.1%)
• Reservation Fee:  $430,997 (10.3%)
• Other Fees:  $76,101 (1.8%)
• Taxes:  $365,356 (8.7%)
• Gross Revenue:  $4,180,546 (100.0%)

Cost of Goods Sold

• Taxes:  $365,356 (8.7%)
• Guest Targeted Marketing Fee:  $219,950 (5.3%)
• Property Owner’s Revenue Share:  $2,224,986 (53.2%)
• Total Cost of Goods Sold:  $2,810,292 (67.2%)

Net Revenue:  $1,370,254 (32.8%)

Property Costs

• Maintenance Costs:  $144,996 (3.5%)
• Property Owner Maintenance Chargebacks:  $148,256 (3.5%)
• Cleaning Costs:  $471,146 (11.3%)
• Total Property Costs (After Adding Back Property Owner Maintenance Chargebacks):  $467,886 (11.2%)

Gross Profit:  $902,368 (21.6%)

Operating Expenses and Franchise Fees

• General Manager:  $80,976 (1.9%)
• Rent:  $28,321 (0.7%)
• Insurance:  $11,540 (0.3%)
• Payroll:  $82,024 (2.0%)
• Payroll Taxes and Benefits:  $14,900 (0.4%)
• Accounting Fees:  $7,411 (0.2%)
• Travel, Meals, and Entertainment:  $2,829 (0.1%)
• Utilities:  $3,945 (0.1%)
• Marketing:  $14,221 (0.3%)
• Telephone:  $1,429 (0.0%)
• Office Expense:  $7,669 (0.2%)
• Local Taxes, Fees, and Permits:  $11,844 (0.3%)
• Local Unit Owner Target Marketing Expenditure:  $28,000 (0.7%)
• Brand Advertising Contribution:  $13,702 (0.3%)
• Guest Services Support Fee:  $28,458 (0.7%)
• Technology Fee:  $26,640 (0.6%)
• Royalty Fee:  $109,620 (2.6%)
• Total Operating Expenses and Franchise Fees:  $473,529 (11.3%)

Net Franchise Profit:  $428,839 (10.3%)

• Gross Revenues means all rental income received from guest stays and other guest payments, including cleaning fee, damage waiver, reservation fees, and sundry other fees, less taxes, credit card/merchant processing fees, and OTA commissions.

• This includes rent, utilities, telephone, travel, office-related expenses, local taxes and fees, payroll, payroll taxes and benefits, and some other general expenses. You may not incur all of these expenses depending on how you operate, or you might incur other costs not included in this table, such as vehicle expenses.

• This includes adjustments for certain profit and loss items if run as a franchise for maintenance chargebacks, third party commissions, insurance, accounting, and the cost of a General Manager running Grand Welcome’s corporate locations.

• Grand Welcome’s affiliate-owned outlets operate in substantially the same manner as franchise outlets; however, the Operating Affiliates are not subject to the same fees that a franchisee will experience. Specifically, a franchisee who achieved the same sales results that Grand Welcome’s Operating Affiliates achieved would incur Local Marketing Fees, Brand Fund Contributions, Technology Fees, and Royalty Fees, as reflected in the above table.

Section VI – Grand Welcome Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️