RV park franchises are a great option for entrepreneurs who want to get into the RV park business. There are many requirements and costs to consider when starting a franchise, but there are also many benefits. This article will help you understand everything you need to know about starting an RV park franchise.
What is an RV Park Franchise?
An RV park franchise is a business that provides branding, RV park structure, and well-developed marketing strategies for franchisees. RV parks that are part of a franchise typically include luxurious amenities such as showers with guest toiletries, updated laundry rooms with sitting areas, and entertainment areas, including oversized barbecues, outdoor kitchens and other amenities. Most franchised RV parks include swimming pools and playgrounds and a few even offer a linked golf course for guests.
The difference between owning an RV park franchise and owning an independent RV park is that a franchise is an already-established brand identity for your RV park, while starting an independent RV park is one you’ll have to build from the ground up. If you own a franchised RV park, you will have to follow the franchisor’s rules and guidelines; however, it also means that you will have access to the franchisor’s marketing and advertising resources.
Requirements For Starting an RV Park Franchise
There are several requirements that must be met in order to start an RV park franchise. First, you must have a minimum of $500,000-$1,000,000 in liquid assets. Additionally, most RV park franchisors require a minimum investment of $10,000-$50,000.
In addition, you will also need to have a minimum of $1 million in net worth. This is because franchisors typically require a personal guarantee from the franchisee.
Finally, you will need to be able to show that you have experience in the RV park industry. This can be done by having worked in a similar business, such as a campground or RV resort.
Start-up Costs You’ll Need to Know
There are several costs that you need to be aware of when starting an RV park franchise:
Franchise Fee: The first cost is the franchise fee. This is the fee that you pay to the franchisor in order to use their brand name and business model. The franchise fee for an RV park franchise can range from $10,000 to $50,000.
Royalty Fee: The second cost is the royalty fee. This is a percentage of your total revenue that you pay to the franchisor on a monthly or annual basis. The royalty fee for an RV park franchise is typically 5%.
Advertising Fee: The third cost is the advertising fee. This is a percentage of your sales that you pay to the franchisor in order to access their marketing and advertising resources. The advertising fee for an RV park franchise is typically 2% of the total of your reservations at the RV park.
Equipment and Supplies: The fourth cost is for equipment and supplies. This includes items like picnic tables, playground equipment, and laundry machines. The cost of equipment and supplies can range from $10,000 to $75,000.
Lease or Purchase of Property: The fifth cost is for the lease or purchase of the property. This is the cost of the land on which you will build your RV park. The cost of leasing or purchasing property can range from $50,000 to $1 million.
Building Construction: The sixth cost is for building construction. This is the cost of building the RV park, including the cost of labor. The cost of building construction can range from $250,000 to $1 million. The contractor is typically paid 3%-5% of the total building cost.
So, as you can see, there are several costs that you need to be aware of when starting an RV park franchise. These costs can range from $500,000 to $2 million; which is why you are required to have enough money in liquid assets and in net worth before starting the franchise.
Pros And Cons Of Running An RV Park Franchise
There are both pros and cons to running an RV park franchise.
Established Brand: One of the biggest pros of running an RV park franchise is that you are buying into an already established brand. This means that you will have access to the franchisor’s marketing and advertising resources and it will be a huge boost to bringing RV campers to your RV park.
Support System: Another big pro of running an RV park franchise is that you will have a support system in place. This includes operational and management systems, such as training and digital software support.
Proven Business Model: Another pro of running an RV park franchise is that you are buying into a proven business model. This means that the franchisor has already successfully started and operated RV parks, so you know that the business model works.
High Cost: One of the biggest cons of running an RV park franchise is that it is a high-cost investment. This is because you need to pay the franchise fee, royalty fee, advertising fee, and build or lease the property.
Ongoing Fees: Another big con of running an RV park franchise is that you have to pay ongoing fees to the franchisor. This includes the royalty fee and advertising fee, which are a percentage of your sales.
Lack of autonomy: Another con of running an RV park franchise is that you lack autonomy. This means that you have to follow the franchisor’s rules and regulations.
RV Park Franchise Opportunities
If you are interested in starting an RV park franchise, there are several opportunities available. Here are a few of the most popular RV park franchises:
Kampgrounds of America: Kampgrounds of America is one of the largest RV park franchises in the United States. They have over 500 locations across the country. They have a franchise fee of $30,000 and a royalty fee of 5%.
Jellystone Park: Jellystone Park is another popular RV park franchise. They have over 80 locations across the United States and Canada. They have a franchise fee of $10,000 and a royalty fee of 3.5%.
Escapees RV Club: Escapees RV Club is a membership-based RV park franchise. They have over 100 locations in the United States and Canada. They have a franchise fee of $5,000 and a royalty fee of 3%.
As you can see, there are many factors that need consideration before starting an RV park as a franchisee. There are several costs that you need to be aware of, as well as the pros and cons of running a franchise. However, if you are interested in starting an RV park franchise, there are several opportunities available. Hopefully, this article has given you a better understanding of what is involved in starting an RV park franchise.