About Clarion Hotels Franchise
Clarion Hotels is a hotel franchise within the Choice Hotels International portfolio, offering several brand formats including Clarion Hotel, Clarion Inn, Clarion Inn and Suites, Clarion Suites, Clarion Resort, and Clarion Pointe.
The brand has been franchising since 1987.
Franchise fees are calculated per room, starting at $400 per room for new construction Clarion properties and $500 per room for new Clarion Pointe properties, with minimums of $45,000.
Clarion Hotels Franchise Cost & Fees
Minimum Investment
$396K
Average Investment
$1.4M
Maximum Investment
$2.5M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | For CLARION, $400 per room for new construction ($45,000 minimum) and $550 per room for transfers/renewals ($45,000 minimum). For CLARION POINTE, $500 per room for new construction ($45,000 minimum) and $650 per room for transfers/renewals ($45,000 minimum). | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Room Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3.25% of Gross Room Revenues (System Fee) | National brand fund |
| Total Investment Range | $396,250 – $2,488,895 | Includes build-out, inventory, working capital |
The investment range of $396K–$2.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Room Revenues) and marketing fee (3.25% of Gross Room Revenues (System Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Affiliation Fee | $45,000 | $70,400 |
| Property Improvements | $192,000 | $1,792,000 |
| Insurance | $2,000 | $70,000 |
| Advertising | $2,500 | $40,000 |
| Hardware to operate choiceADVANTAGE® property management system -- Depending on the configuration | $3,000 | $10,800 |
| choiceADVANTAGE® Software License and Systems Training | $8,750 | $15,750 |
| Opening Inventory of Supplies | $48,000 | $272,000 |
| Orientation and Hospitality Training Fees | $0 | $3,345 |
| Mandatory On-Premise Signs (including freight and installation but excluding maintenance and insurance) | $15,000 | $80,000 |
| Working Capital Required Before Operations Begin | $30,000 | $60,000 |
| Additional Funds for 3-Month Initial Period | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The then current affiliation fee or $45,000 (whichever is greater) for 50% or more equity interest; $3,000 for less than 50% equity interest; $0-$7,500 for Close Family Member transfer. |
| Technology Fee | System Fee (covers development, maintenance, upgrading of PMS/Reservation systems), choiceADVANTAGE® Support Fee ($436-$719/month), CrowdStrike ($60/month), Choice Revenue Management system ($125-$522/month). |
| Audit Fee | $1,000 - $6,000 |
| Rewards Programs Fee (Choice Privileges) | 4.5% - 5.5% of room revenue generated by rewards program members |
| Airline Frequent Traveler Program Fee | 5% of room revenue generated by airline frequent travelers |
| Affiliate and Enhanced Reservations Program Commissions | Standard commissions (currently up to 10%) |
| Marketing Processing Fee Programs Processing Fee | $0.48 per transaction per eligible stay for Affiliate, FedRooms, GSA fees; $0.12 per transaction per eligible stay for Reward Program or CHERP fees |
| Third Party Distribution Fee | $3.00 for each consumed reservation |
| Travel Agent and Other Reservation Based Commissions | Standard commission (currently 10% - 12%) |
| General Sales Agents (GSA) Fee | 5% commission in addition to any applicable Travel Agent Commission |
| Global Distribution System (“GDS”) / DHISCO Fee | Currently $7.70 for each reservation |
| Gift Card Redemption Processing Fee | 2.5% of the value of the gift card (plus $3 monthly check fee if applicable) |
| Choice Hotels Owners Council (CHOC) Dues | $50/month |
| Association’s Regional Franchise Meeting Fee | $299 per attendee plus travel, lodging and living expenses (Late Registration fee is an additional $50) |
| Annual Convention Registration Fee | $1,115 plus travel, lodging and living expenses (Late Registration Fee is $1,305) |
| Educational Resources Program | $1,000 annually plus any applicable taxes |
| Additional Training Programs | Reasonable charges ranging from $50 - $250 |
| Re-Licensed Hotel Training | $995 |
| Room Count Change Fee | The per-room charge then being charged for new franchisees, but not less than $1,000 |
| Extension Fee | $5,000 |
| Assumption Fee | $7,500 |
| Commitment to Your Satisfaction Program | Up to the cost of the dissatisfied guest’s stay at your hotel |
| Property Improvement Plan Fee | $3,000 |
| Choice Privileges Elite Welcome Recognition Program | Approximately $0.005 per Choice Privileges point awarded to guest, or the cost of the gift provided to guest |
| Choice Privileges Elite Benefits “Reserved Parking” Signs | Approximately $25 per “Reserved Parking” sign |
| “Casting” Service Subscription (Clarion Pointe only) | $75 installation fee per room, plus ongoing $2 per month per TV |
| Choice Privileges “Points Plus” Packages | Approximately $0.005 per Choice Privileges point awarded to guest |
| Insurance Reimbursement Fee | $500-$100,000 |
| Taxes | Amount assessed by federal, state and local tax authorities |
| ChoiceMAX Training and Set Up Fee | $1,000-$2,500 |
| Choice Signature Start | Up to $3,000 Monthly |
| Resource Advisor Energy & Sustainability Software Platform | $215 (annually) up to $250 associated with implementation and service |
| Sales Certification Training Program (Optional) | $500 per attendee |
| SmartMarketing (Optional) | $0 - $45 |
| Choice Revenue Management Program (Optional) | $430 - $1,700 based on offering tier/service |
| Interior Design Waiver Fee (Optional) | Not to exceed $15,000 |
| Mega Agency and Consortia Pay for Performance Program (Optional) | 2.7% of total room revenue from consumed business |
| Call Forwarding Reservation Service Fees (Optional) | $2.95 per call transferred (plus early exit fee of $500/month remaining in the initial term) |
| Choice Privileges Meeting/Group Planner Point Program (Optional) | $0.005 per Choice Privileges point awarded |
| Marketing Cooperative Fee (Optional) | $400 - $2,400 annually |
| Additional Consultation and Services Fee (Optional) | Dependent on the service requested |
| choiceADVANTAGE® Quick Shop (Optional) | $30 monthly |
| AHLA Dues (Optional) | $4.50/room Annually |
| Non-Compliance Penalty | $35 - $25,000 per instance of non-compliance |
| Revenue Reporting Late Fee | 1.5% of the preceding month’s Royalty Fee and System Fee |
| Interest | 1.5% of the delinquent amount |
| Reservation System Reinstatement Fee | $5,000 |
| Liquidated Damages | If terminated before opening, number of sleeping rooms * 36 months * $40. If terminated after opening, greater of (a) $40 * sleeping rooms * months until next termination date (max 36 months); or (b) average monthly GRR for last 12 months * Royalty Fee * months until next termination date (max 36 months). |
| Intellectual Property Liquidated Damages | $2,500 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Mandatory training includes a 2.5-day Choice Onboard program (20 classroom hours) and a virtual Hospitality Operations Success Training (HOST) program (27 hours of online lessons/workshops/exams). Additionally, 16-22 hours of on-the-job training for choiceADVANTAGE® online remote onboarding is required. |
| Classroom Training | 47 hours (20 for Choice Onboard, 27 for HOST) |
| On-the-Job Training | 16-22 hours (for choiceADVANTAGE® online remote onboarding) |
| Training Location | Choice Onboard: Rockville, Maryland or Scottsdale, Arizona. HOST: Virtually (any location with internet access). choiceADVANTAGE®: Remotely (virtual) or optional on-site at your hotel. |
| Additional Training | Educational Resources Program ($1,000 annually), additional training programs ($50-$250), Re-Licensed Hotel Training ($995), optional Sales Certification Training Program ($500), and regional workshops. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchises are granted for specific sites only, and franchisees will not receive an exclusive territory. Competition may come from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by the franchisor. The franchisor reserves the right to grant franchises or open company-owned hotels at any location under any brand name other than the specific franchise agreement location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Transfer Fee | The then current affiliation fee or $45,000 (whichever is greater) for 50% or more equity interest; $3,000 for less than 50% equity interest; $0-$7,500 for Close Family Member transfer. |
| Transfer Conditions | Transferee must meet current franchisee qualifications, the hotel must comply with brand image and standards, and for controlling interest transfers, the transferee must sign the then-current franchise agreement and a property improvement plan, and all owners must sign a personal guaranty. For Close Family Member transfers, the transferee must demonstrate financial ability and experience. |
| Termination for Cause | Termination can occur for curable defaults (e.g., non-payment of fees within 10 days, other breaches within 30 days) or immediately for non-curable defaults (e.g., imminent threat to public safety, abandonment, criminal behavior, unauthorized transfer, false records, bankruptcy, failure to maintain insurance, multiple defaults, construction/opening deadline failures, conduct damaging to brand, unauthorized disclosure of confidential information, or breach of other agreements). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor does not require personal participation in the direct operation of the franchised hotel. However, a certified General Manager is required at the hotel, who must complete the Hospitality Operations Success Training (HOST). The General Manager is not required to hold an ownership interest. |
| Required Suppliers | Choice-approved product in public space and guestrooms; Choice Mark-bearing items (signs, bath amenities); bedding, computer hardware, other brand standard items per brand specifications; choiceADVANTAGE® software license and mandatory hardware package; dedicated, wired, business grade High Speed Internet Access solution; participation in any purchasing or distribution cooperative; Choice Gift Card Program; insurance policies as required. |
| Supply Restrictions | Certain Qualified Vendors are designated as exclusive suppliers. We may limit the number of Qualified Vendors to obtain volume discounts and to promote consistent quality and adequate supplies for the particular brand. We reserve the right to require you to purchase any or all approved products or services solely from us or our designated affiliate. |
| Franchisor Revenue from Suppliers | We receive certain commissions or rebates from Qualified Vendors that typically range from 1% to 2% (but may be up to 20%) of net sales volume to franchisees, as well as a flat fee annually from each Qualified Vendor. Revenues attributable to franchisee purchases were $86.9 million, or about 8.14% of our total revenues in 2021, which includes revenues from Qualified Vendors and choiceADVANTAGE® installation and support fees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Choice Hotels International, Inc. may offer to finance the affiliation fee without interest, evidenced by a promissory note due in one lump sum within three months. Choice also offers a Diversity and Veteran Incentive Program, providing forgivable promissory notes of $2,500 per room (max $250,000 for Clarion, $175,000 for Clarion Pointe) amortized over 10 years (or 5 years for 50% of the amount). Third-party financing is available through Qualified Vendors like PMC Commercial Trust, Balboa Capital Corporation, and Ascentium Capital LLC for various costs including affiliation fees, construction, equipment, and working capital. These third-party loans range from $5,000 to $5,000,000, with variable or fixed interest rates and terms from 12 to 25 years, often requiring personal guarantees and collateral. |
Clarion Hotels Franchise Earnings — Item 19
Clarion Hotels does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Clarion Hotels does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Clarion Hotels Litigation & Risk Flags
45 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Clarion Hotels System Growth
Total Units
186
Franchised
186
Company-Owned
0
Clarion Hotels currently operates 186 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 22 | 18 | 175 |
| 2020 | 29 | 24 | 180 |
| 2021 | 26 | 20 | 186 |
Transfers: 29 | Closures: 62
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$1069.3M
Net Income
$240.0M
Total Assets
$2875.0M
Audited by Ernst & Young LLP for year ending December 31.
Clarion Hotels Franchise — FAQ
The total investment to open a Clarion Hotels franchise ranges from $396,250 to $2,488,895, per their Franchise Disclosure Document. This includes the initial franchise fee of For CLARION, $400 per room for new construction ($45,000 minimum) and $550 per room for transfers/renewals ($45,000 minimum). For CLARION POINTE, $500 per room for new construction ($45,000 minimum) and $650 per room for transfers/renewals ($45,000 minimum).. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Clarion Hotels charges a royalty fee of 5.5% of Gross Room Revenues of gross sales, plus a 3.25% of Gross Room Revenues (System Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Clarion Hotels Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Clarion Hotels to ensure you have the most up-to-date version.
Clarion Hotels does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Clarion Hotels has been franchising since 1987. The FDD shows an investment range of $396,250-$2,488,895, a 5.5% of Gross Room Revenues royalty, and includes an Item 19 earnings disclosure. There are 45 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is For CLARION, $400 per room for new construction ($45,000 minimum) and $550 per room for transfers/renewals ($45,000 minimum). For CLARION POINTE, $500 per room for new construction ($45,000 minimum) and $650 per room for transfers/renewals ($45,000 minimum). and the total investment ranges from $396,250 to $2,488,895 depending on location size and market. A minimum of $30,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Clarion Hotels and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Clarion Hotels or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com