About Cobblestone Hotel & Suites Franchise
Cobblestone Hotel and Suites is a hospitality franchise brand offering franchise opportunities since 2013.
The brand specializes in upper midscale hotels in smaller communities and secondary markets where quality lodging options are limited.
Each property features comfortable guest rooms, complimentary breakfast, business centers, and fitness facilities, providing a full service hotel experience in underserved areas.
Cobblestone Hotel & Suites Franchise Cost & Fees
Minimum Investment
$3.5M
Average Investment
$6.1M
Maximum Investment
$8.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | $3.50 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $0.75 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month | National brand fund |
| Total Investment Range | $3,492,499 – $8,738,497 | Includes build-out, inventory, working capital |
The investment range of $3.5M–$8.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($3.50 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month) and marketing fee ($0.75 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $40,000 | $40,000 |
| Initial Training Fee, Travel, and Living Expenses while Training | $1,000 | $5,000 |
| Furniture, Fixtures and Equipment | $0 | $1,500,000 |
| Interior Design Review Fee | $0 | $5,000 |
| Exterior Signage | $10,000 | $50,000 |
| Hardware, Software, and Installation | $0 | $20,000 |
| Property Management System Set-Up and Installation | $7,000 | $7,000 |
| Reservation System Set-Up and Integration | $2,000 | $2,000 |
| Call Center System Initial Set Up and Installation | $1,000 | $1,000 |
| High-Speed Internet Access Hardware, Software, and Installation | $0 | $15,000 |
| Cobblestone Rewards Initial Fee | $2,000 | $2,000 |
| Signage Review Fee | $0 | $5,000 |
| Contactless Check-In and Digital Authorizations | $0 | $500 |
| Additional Funds – Pre-Opening and 3 Months | $0 | $150,000 |
| Real Estate and Site Preparation | N/A | N/A |
| Building Improvements, including Architect, MES (i.e. contractor or construction team), Civil and Aquatic Engineers, Design Fees | $2,800,000 | $6,500,000 |
| Opening Inventory | $20,000 | $60,000 |
| Closing Costs | $40,000 | $90,000 |
| Contingencies | $50,000 | $200,000 |
| Construction Review Fee | $0 | $10,000 |
| Insurance | $2,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | Then-current Initial Fee |
| Technology Fee | PMS Fees: $4.50 per room/per month plus a flat fee of $195 per month; Reservation Fees for CRS: $775 per month; Call Center Reservation Line: 11% of revenue derived from each booked reservation transferred from the call center; Cobblestone Rewards Program: $300 per month or 15% of usage per month, whichever is greater plus $0.045 per manual point; E-mail Platform: $10-$75 per month per license; Marketing Platform Fee (Sojern): 15% of all revenue derived through the Sojern marketing platform; Contactless Check-In and Digital Authorizations: $39 to $199 per month for mobile app plus $20 - $40 per month for digital authorizations (additional fees may apply per guest) |
| Interest | 18% Annual Percentage Rate |
| Quality Assurance Inspections | All lodging expenses incurred by our inspectors, ranging from $500 to $1,000 per inspection |
| Guest Complaint Resolution Fee | Cost to compensate a dissatisfied guest, plus a processing fee of $180 for every complaint received |
| Administrative Expenses Associated with Advisory Services | Will vary under circumstances (all reasonable administrative and out-of-pocket expenses and other fees) |
| Re-evaluation Fee | $1,750 |
| Re-Instatement Fee | $2,000 |
| Conference Meeting Attendance | Currently $799 per person, plus travel, lodging, meals, and incidental expenses |
| Ongoing Training Fee | $499 per person up to a maximum of $1,497 for corporate headquarters training and $500 per day up to a maximum of $4,500 (9 days) for on-site training, plus travel, wages, lodging and other related expenses for trainees and staff (between $1,000 and $5,000) |
| Promotional Programs | Will vary under the circumstances |
| Central Travel Agent Commission Program | Will vary under the circumstances and is charged as negotiated with third-party providers |
| Shift4 (credit card processing) | As negotiated with third-party vendor |
| Maintenance, Support, and Training for Guest High-Speed Internet Access Hardware and Software | As negotiated with third-party providers |
| Interior Design Review Fee (ongoing) | Up to $5,000 |
| Attorneys’ Fees and Costs | Will vary under the circumstances |
| Indemnification | Will vary under the circumstances |
| Insurance | Will vary under the circumstances |
| Liquidated Damages | See Note 2 in Item 6 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 5 days for General Manager, plus up to 5 days of opening assistance and up to 4 additional days of on-site training. |
| Classroom Training | Up to 47 hours |
| On-the-Job Training | Up to 44 hours |
| Training Location | Corporate headquarters (Neenah, WI) and on-property |
| Additional Training | Additional training may be required on an as-needed basis if the facility is not operating in compliance with standards, new standards are instituted, or new employees are unfamiliar with standards. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | 5-mile radius around the Franchised Location |
| Description | Each Cobblestone Lodging Facility is granted a “Protected Area” for one specific location, described in Exhibit A of the Franchise Agreement. As long as the facility meets minimum guest room requirements and is not in default, the franchisor will not operate or grant a license to another Cobblestone Lodging Facility within this Protected Area. This is the only territorial protection granted, and the franchisor and its affiliates retain the right to distribute products/services through alternative channels (including the Internet) and operate other lodging properties under different trade names within or outside the Protected Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years from the date the Cobblestone Lodging Facility opens for business |
| Renewal Term | No right to renew; a new Franchise Agreement with potentially different terms and conditions must be signed. |
| Renewal Fee | Then-current Initial Fee |
| Renewal Conditions | Compliance with all material provisions, 180-day written notice, agreement to remodel/modernize/renovate to current image, execution of a general release, execution of the then-current Franchise Agreement, payment of the then-current Initial Fee, and any other reasonable conditions. |
| Transfer Fee | $5,000 |
| Transfer Conditions | All monetary obligations paid, no default, transferee meets managerial/financial/business standards, transferee executes new Franchise Agreement and ancillary agreements, transferee and owners sign personal guaranty, transferee assumes Loyalty Programs and gift certificate obligations, transferee (or GM) completes training, transferee purchases real estate/building, transferee agrees to remodel/modernize/renovate to current standards, transferee demonstrates terms are not burdensome, and transferee agrees to operate for full unexpired term or longer. |
| Termination for Cause | Franchisor may terminate with notice (60 days generally, 10 days for non-payment, 24 hours for materially impairing goodwill). Immediate termination for felony conviction/guilty plea, voluntary abandonment, or repeated breaches (3+ in 36 months for same/similar breach). |
| Non-Compete Period | Not Applicable |
| Non-Compete Details | No non-compete covenants during the term or after termination/expiration of the Franchise Agreement. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee (or an approved General Manager) must actively participate in the management and supervision of the Cobblestone Lodging Facility, with direct, on-premises supervision at all times. If no management company is hired, the General Manager must have at least five (5) years of hotel general management experience. The franchisor reserves the right to require the franchisee to hire an approved management company at any time. |
| Required Suppliers | Central Reservation System (SynXis), Property Management System (SkyTouch), Call Center Reservation Services (Sabre), Cobblestone Rewards Program (Cendyn), and credit card processing system (Shift4). |
| Supply Restrictions | You must purchase your Central Reservation System, Property Management System, Call Center Reservation Services, Cobblestone Rewards Program, and credit card processing system from our approved suppliers. We do not grant approval of alternative suppliers for these systems. All other goods and services can be purchased from any suppliers you choose, provided they conform to our standards of quality and uniformity. |
| Franchisor Revenue from Suppliers | $1,932,035.32, or 30.37% of our total revenues of $6,361,189.77 for the year ended December 31, 2021. |
Cobblestone Hotel & Suites Franchise Earnings — Item 19
Cobblestone Hotel & Suites 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.
Cobblestone Hotel & Suites 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.
Cobblestone Hotel & Suites Litigation & Risk Flags
Clean Litigation RecordCobblestone Hotel & Suites has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Cobblestone Hotel & Suites System Growth
Total Units
109
Franchised
109
Company-Owned
0
Cobblestone Hotel & Suites currently operates 109 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 | 19 | 3 | 94 |
| 2020 | 13 | 0 | 107 |
| 2021 | 4 | 2 | 109 |
Transfers: 5 | Closures: 2
State Registrations
Registered in 20 states: CA, NY, HI, ND, IL, OR, IN, RI, IA, SD, KY, TX, MD, UT, MI, VA, MN, WA, NE, WI
Franchisor Financials (Item 21)
Revenue
$6.3M
Net Income
$2.6M
Total Assets
$7.4M
Audited by Baker Tilly US, LLP for year ending December 31.
Cobblestone Hotel & Suites Franchise — FAQ
The total investment to open a Cobblestone Hotel & Suites franchise ranges from $3,492,499 to $8,738,497, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Cobblestone Hotel & Suites charges a royalty fee of $3.50 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month of gross sales, plus a $0.75 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Cobblestone Hotel & Suites 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 Cobblestone Hotel & Suites to ensure you have the most up-to-date version.
Cobblestone Hotel & Suites 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.
Cobblestone Hotel & Suites has been franchising since 2013. The FDD shows an investment range of $3,492,499-$8,738,497, a $3.50 per day multiplied by the number of guest rooms at the Franchised Location, calculated based on a 30-day month royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $3,492,499 to $8,738,497 depending on location size and market. 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 Cobblestone Hotel & Suites and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Cobblestone Hotel & Suites or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com