About Magnuson Hotels and Magnuson Grand Franchise
Magnuson Hotels and Magnuson Grand is a hotel franchise system that has been franchising since 2022, backed by Magnuson Company, L.L.C.
The brand offers independent hotel owners a flexible affiliation model that provides brand recognition, reservation system access, and marketing support without the rigid requirements of traditional hotel franchise agreements.
The franchise fee is $10,000, making it one of the most affordable hotel franchise entry points available.
Magnuson Hotels and Magnuson Grand Franchise Cost & Fees
Minimum Investment
$167K
Average Investment
$269K
Maximum Investment
$370K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 | One-time payment upon signing |
| Royalty Fee | 6.5% of Gross Room Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | No specific ad fee required | National brand fund |
| Total Investment Range | $167,000 – $370,000 | Includes build-out, inventory, working capital |
The investment range of $167K–$370K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6.5% of Gross Room Revenue) and marketing fee (No specific ad fee required) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Signage and Branded Supplies | $3,000 | $40,000 |
| Insurance | $2,000 | $10,000 |
| Professional Fees | $2,000 | $10,000 |
| Additional Funds – 3 Months | $150,000 | $300,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Varies based on actual costs |
| Audit Fee | Reimbursement of all audit costs |
| GDS Booking Fees | Currently, $10.50 per GDS booking |
| Distribution Channel Fees | Reimbursement of all fees (currently estimated: 10% for GDS reservations, or 15% to 20% for other channels) |
| Insufficient Funds Fee | $25 per occurrence |
| Interest Charges | 1% per month or the maximum rate allowed by applicable law |
| Conversion Violation | $1,000 per month |
| Standards Violation | $2,000 per month |
| Re-booking Fee | 200% of the booking fee, or the cost of alternate accommodation, whichever is higher |
| Guest Relations Reimbursement | Our direct costs |
| Reinspection Fee | Reimbursement of our expenses |
| Insurance Certificate Fee | $250 per month |
| Enforcement Costs and Attorneys’ Fees | Will vary under circumstances |
| Re-Activation Fee | Currently, $750 per occurrence |
| Indemnification | Will vary under circumstances |
| Termination Damages | Will vary under circumstances |
| De-Identification Reimbursement | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | No formal training program, but revenue management support is provided. |
| Additional Training | Revenue management support is available to assist in developing strategies for optimizing rates, inventory, and reviews for the Hotel. Franchisees have the final decision and responsibility for all such strategies. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees will not receive an exclusive territory. The franchisor and its affiliates retain all rights to place Branded Hotels and conduct other business activities in any location, including those competitive with the franchisee's hotel. Franchisees may only operate from the approved Incumbent Hotel premises and cannot relocate. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | One additional successive 5-year term |
| Renewal Conditions | Renewal is conditioned on compliance with all agreements, signing a new franchise agreement and related documents, signing a general release, and bringing the Hotel into compliance with then-applicable Brand Standards for new Branded Hotels. |
| Transfer Fee | Varies based on actual costs |
| Transfer Conditions | Transfers require franchisor approval, which may be conditioned on the transferee meeting current criteria, signing a new franchise agreement and related documents, and the franchisee and owners being in full compliance with existing agreements. A general release of claims against the franchisor and affiliates is also required. |
| Termination for Cause | The franchisor may terminate immediately for various causes including material misrepresentation, abandonment of the Hotel, unauthorized transfer, conviction of a felony, loss of premises, violation of restrictive covenants, health/safety concerns, understatement of Gross Room Revenue, insolvency, or repeated violations of the Franchise Agreement or Brand Standards. |
| Non-Compete Period | Not Applicable |
| Non-Compete Details | Non-competition covenants are not applicable during the term of the franchise or after termination/expiration. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees must identify one Owner (a natural person) to supervise the day-to-day operation of the Hotel on a full-time basis. This Managing Owner is authorized to deal with the franchisor on behalf of the franchisee and make binding decisions. The franchisee is solely responsible for all decisions relating to employees, agents, and independent contractors. |
| Required Suppliers | Franchisees must use the Magnuson Cloud PMS licensed by Magnuson Company as their exclusive reservation system. Point-of-sale or other computer systems must meet Brand Standards. All signage and branded supplies must comply with Brand Standards. |
| Supply Restrictions | Franchisees must comply with Brand Standards for all signage and branded supplies. The franchisor has the sole and exclusive right to list the Hotel and Guest Rooms with Third-Party Distribution Channels. |
| Franchisor Revenue from Suppliers | Neither the franchisor nor its affiliates received any revenue or other material consideration from selling goods to Branded Hotel owners (other than fees described in Item 6) in the last fiscal year, but may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any agent or affiliate offers direct or indirect financing to you, guarantees any of your obligations, or otherwise provides any financing to any owners of Branded Hotels. |
Magnuson Hotels and Magnuson Grand Franchise Earnings — Item 19
Magnuson Hotels and Magnuson Grand 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.
Magnuson Hotels and Magnuson Grand 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.
Magnuson Hotels and Magnuson Grand Litigation & Risk Flags
Clean Litigation RecordMagnuson Hotels and Magnuson Grand 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.
Magnuson Hotels and Magnuson Grand System Growth
Total Units
0
Franchised
0
Company-Owned
0
Magnuson Hotels and Magnuson Grand currently operates 0 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 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 8 states: MI, MN, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Net Income
$-12,656.45
Total Assets
$101K
Audited by CliftonLarsonAllen LLP for year ending December 31.
Magnuson Hotels and Magnuson Grand Franchise — FAQ
The total investment to open a Magnuson Hotels and Magnuson Grand franchise ranges from $167,000 to $370,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $10,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Magnuson Hotels and Magnuson Grand charges a royalty fee of 6.5% of Gross Room Revenue of gross sales, plus a No specific ad fee required contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Magnuson Hotels and Magnuson Grand 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 Magnuson Hotels and Magnuson Grand to ensure you have the most up-to-date version.
Magnuson Hotels and Magnuson Grand 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.
Magnuson Hotels and Magnuson Grand has been franchising since 2022. The FDD shows an investment range of $167,000-$370,000, a 6.5% of Gross Room Revenue royalty, and no 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 $10,000 and the total investment ranges from $167,000 to $370,000 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 Magnuson Hotels and Magnuson Grand and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Magnuson Hotels and Magnuson Grand or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com