About The James Franchise
The James is an upper upscale full-service hotel franchise offering luxury boutique hotel services.
Franchisees operate converted existing hotels under The James brand, providing high-quality lodging to business and leisure travelers, meeting planners and attendees, and organizers of social functions.
The hotels offer guest room accommodations along with food and beverage operations, spa and salon services, meeting and event spaces, and other ancillary hospitality services.
The James Franchise Cost & Fees
Minimum Investment
$5.2M
Average Investment
$11.9M
Maximum Investment
$18.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 or $500 per Guest Room, whichever is greater | One-time payment upon signing |
| Royalty Fee | 5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3.5% of Gross Rooms Revenue (may increase up to 4.5%) | National brand fund |
| Total Investment Range | $5,232,195 – $18,627,395 | Includes build-out, inventory, working capital |
The investment range of $5.2M–$18.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Rooms Revenue) and marketing fee (3.5% of Gross Rooms Revenue (may increase up to 4.5%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee | $125,000 | $125,000 |
| Revenue Management System Installation and Training | $1,500 | $18,950 |
| IT Implementation Services Fee | $0 | $52,000 |
| Property Management System Hardware & Installation Fee | $25,000 | $40,000 |
| Ancillary System Hardware, Network, Administration | $50,000 | $150,000 |
| Sales Technology Platform Implementation Costs | $0 | $20,000 |
| PMS Interface and Tokenization Set Up Fee | $445 | $445 |
| PIP Fee | $5,000 | $5,000 |
| PIP Reinspection Fee | $0 | $5,000 |
| Custom Architecture & Design Review | $0 | $25,000 |
| Initial Onboarding and Brand Training Fee and Expenses | $6,500 | $7,500 |
| Initial Training Expenses | $1,000 | $6,000 |
| Lender Comfort Letter Fee | $2,000 | $2,000 |
| Conversion Remodeling Expenses | $675,000 | $10,125,000 |
| Initial Operations, Pre-Opening Expenses, Marketing and Advertising Expenses | $67,500 | $270,000 |
| Signage | $25,000 | $125,000 |
| Insurance | $4,000 | $152,000 |
| Branded Landing Page Installation | $1,000 | $10,000 |
| Guest Wi-Fi and In-Room Entertainment Installation | $25,000 | $75,000 |
| Photography Expenses | $0 | $5,000 |
| Additional Funds (first 3 months of operation) | $4,218,250 | $7,408,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 100% of then-current Initial Fee |
| Renewal Fee | 100% of then-current Initial Fee |
| Technology Fee | Up to $9.00 per Guest Room per month |
| Audit Fee | Cost of audit including attorneys, accountants, travel expenses (if underreported by 2% or more) |
| Loyalty Program (Sonesta Travel Pass) | 4.5% of Qualified Room Revenue |
| Reservation Fees | $1.75 to $9.50 per reservation |
| Travel Agency Commissions | 10% of TAC Consumed Revenue |
| Travel Agency Commission Settlement Fee | Up to $0.85 per transaction |
| Meetings and Events Commission | 5% on consumed master folio per group |
| TMC and Consortia Fees | $3.50 per room night |
| Email Fee | $5 per month per email account (beyond first 3) |
| Corporate Account Support | $150 per month |
| Sales Technology Platform Fees | $784.83 per month plus $135.33 per user per month |
| Guest Relations Program | $195 per issue plus resolution costs |
| Operations Insights | $125 per month |
| Online Review Response Fee | $39 to $150 per response |
| Quality Assurance Annual Inspection | $2,000 per year; $4,000 re-inspection |
| Brand Conference Fee | $100 per month |
| Revenue Management for Hire | $695 to $2,500 per month |
| Revenue Management System | $9.25 per Guest Room per month |
| Market Intelligence | Up to $250 per month |
| AHLA Fee | $4.50 per room per year |
| Non-Compliance Fee | 1% of Gross Rooms Revenue per month |
| Late Payment Charge | Lesser of 1.5% per month or maximum rate permitted by law |
| Insurance (if not maintained) | $500 per month plus reimbursement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3-5 days initial onboarding and brand training, plus 16-34 hours on-the-job training |
| Classroom Training | 0 hours |
| On-the-Job Training | 16 to 34 hours |
| Training Location | On-site at franchisee's Hotel (or another location designated by franchisor, or virtually) |
| Additional Training | Ongoing training available at $1,500/day in-person or $500/day virtual. Revenue Manager Certification Training available at $250 to $8,950 per user. Brand Conference attendance required no less than every 18 months. Total attendance not to exceed 5 days per calendar year. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | No exclusive territory granted. Franchisor and affiliates retain rights to establish Brand Hotels and Network Hotels at any location, sell ownership interests, merge or acquire businesses, use all channels of distribution, and engage in all activities not expressly prohibited. In special circumstances, franchisor may grant an exclusive or protected area if circumstances warrant. Relocation is not permitted. No options, rights of first refusal, or similar rights to acquire additional franchises. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | One additional 20-year term |
| Renewal Fee | 100% of then-current Initial Fee |
| Renewal Conditions | Must give notice 9-12 months before expiration; must have substantially complied during term with no more than 3 default notices; must be in full compliance at time of notice and renewal; must remodel to then-current Brand Standards; may be required to transition to different brand concept; must sign then-current franchise agreement (which may differ materially); must pay renewal fee; must sign general release |
| Transfer Fee | 100% of then-current Initial Fee (no fee if transfer to spouse upon spouse's death) |
| Transfer Conditions | Must be in full compliance; transferee must meet qualifications for new franchisees; transferee must complete training; must complete PIP within 120 days; transferee signs then-current franchise agreement; transferor and owners sign general release; franchisor has 30-day right of first refusal |
| Termination for Cause | 30 days to cure operational defaults; immediate termination for non-curable defaults including failure to pay within 10 days of notice, bankruptcy/insolvency, failure to open by Opening Date, abandonment, contesting Marks, felony conviction, fraud, unauthorized transfer, failure to maintain insurance, and repeated noncompliance (same default twice in 24 months or 3 breaches in 12 months) |
| Non-Compete Period | During the term of the franchise agreement only (no post-termination non-compete) |
| Non-Compete Details | During the term: no direct or indirect ownership interest in a Competitive Business; no performing services for a Competitive Business; no use of Franchise System or Brand Standards for any other business. Competitive Business excludes franchisees of competitive brands, management companies operating hotels for multiple brands, and passive investors. Post-termination: 2-year non-interference covenant (no interfering with franchisor's vendor/consultant relationships or injuring goodwill of Marks). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to participate personally in direct operation of the Hotel, although it is recommended. Hotel must be managed by a full-time General Manager meeting franchisor's minimum qualifications. Franchisee may engage an approved Management Company. If franchisee is an entity, the Principal must have at least 25% ownership interest and voting power with authority of a chief executive officer. |
| Required Suppliers | Signage must be purchased from an Approved Supplier. All FF&E and some OS&E and operating supplies such as food products must be purchased from an Approved Supplier. Must use designated booking engine, Central Reservation System, Property Management System, and Revenue Management System. |
| Supply Restrictions | Franchisor reserves the right to approve or designate all vendors and suppliers. May designate sole supplier or approved suppliers which may include franchisor or affiliates. Unapproved supplier requests require written approval with approximately 30-day review period. |
| Franchisor Revenue from Suppliers | RLHC received $101,587 from vendors based on purchases by all Network Hotels in 2021. RLHC and SRLHF derived $11,048,160 and $965,050 respectively from purchases by franchisees/licensees, representing approximately 24.2% of RLHC's total revenue. Allowances generally range from 1% to 4% of net or gross sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may offer development incentives comprising $4,000 to $8,000 per Guest Room, disbursed within 10 days after hotel opening. The incentive does not need to be repaid unless the Franchise Agreement is terminated before expiration or a transfer occurs. The repayable amount is reduced annually by an equal percentage based on the franchise term. No interest unless repayment is triggered, then 18% per annum. No security interest required. Each owner with 15%+ interest must sign a guaranty. |
The James Franchise Earnings — Item 19
The James 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.
The James 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.
The James Litigation & Risk Flags
1 Pending Action 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.
The James System Growth
Total Units
0
Franchised
0
Company-Owned
0
The James 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 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$30.1M
Net Income
$-3,308,000
Total Assets
$96.2M
Audited by Unaudited (7-month period ended July 31, 2022); Audited financial statements for RLHC by BDO USA, LLP (2020 and 2019) and successor auditor (2021) for year ending December 31.
The James Franchise — FAQ
The total investment to open a The James franchise ranges from $5,232,195 to $18,627,395, per their Franchise Disclosure Document. This includes the initial franchise fee of $75,000 or $500 per Guest Room, whichever is greater. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The James charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 3.5% of Gross Rooms Revenue (may increase up to 4.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The James 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 The James to ensure you have the most up-to-date version.
The James 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.
The James has been franchising since 2022. The FDD shows an investment range of $5,232,195-$18,627,395, a 5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There are 1 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 $75,000 or $500 per Guest Room, whichever is greater and the total investment ranges from $5,232,195 to $18,627,395 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 The James and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The James or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com