Howard Johnson Franchise Business Opportunity

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With a loan of $500, Howard Dearing Johnson purchased a small patent medicine shop in Quincy, Massachusetts, in 1925. He used an old-fashioned, hand-cranked freezer in the store's basement to make vanilla, chocolate and strawberry ice cream for the shop's soda fountain. Three years later, with menu additions like hot dogs and hamburgers, he opened the first Howard Johnson's Restaurant.

By 1935, there were 25 Howard Johnson ice cream and sandwich stands in Massachusetts. Five years later, with more than 100 restaurants on the Atlantic Coast, Johnson opened the first turnpike restaurant on the Pennsylvania Turnpike. In 1954, when the company operated 400 restaurants, the first Howard Johnson hotel opened in Savannah, Georgia.

After Johnson's son took over the company in 1959, it was subsequently acquired by three different companies before Cendant Corp. bought the hotel chain in 1990. Howard Johnson Int'l. franchises offer mid-priced lodging at Howard Johnson Plaza Hotels, Howard Johnson Hotels, Howard Johnson Inns and Howard Johnson Express Inns. Children stay free at Howard Johnson, and Road Rally and AARP offer senior discounts at the hotels.

The Howard Johnson® brand has extraordinary strength. Today, more than ever, Howard Johnson is a name that people trust, respect and look forward to seeing wherever they travel. It's a name that stands for honest quality and solid value. The Howard Johnson name now graces over 475 hotels in 17 countries worldwide. It is one of the most well-known mid-price hotel families in the world. This year, millions of people are expected to visit Howard Johnson hotels.


The information presented may have changed since first published. We recommend that you always verify fees, investment amounts and offers with the business opportunity directly prior to making a decision to invest.

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"What are The Top 5 Questions to Ask a Franchisor"


1. What training and ongoing support do you provide?

You want to know what happens after you pay the initial fee. A strong franchisor provides comprehensive pre-opening training, site-selection help, operational playbooks, and continuous assistance with marketing, technology, and supply chains.

2. What is the total initial investment, and did actual startup costs match the estimates in Item 7 of the FDD?

The Franchise Disclosure Document (FDD) lists estimated startup costs in Item 7, but real-world expenses can run higher. Asking how closely current owners tracked to these estimates reveals if you need extra working capital or if hidden fees exist.

3. How do royalties and local/national marketing fees impact profitability?

You need to understand ongoing financial obligations-such as monthly royalty percentages and ad fund contributions-and evaluate whether the brand value and support justify cutting into your profit margins.

4. What are the common challenges new franchisees face, and how do you help them overcome them?

Transparent franchisors will openly discuss real hurdles like local competition, tight labor markets, or supply chain bottlenecks, and show you the exact playbook or field support they offer to solve them as well as allowing you to speak with other franchisees.

5. How many franchise locations have closed or left the system in the past few years, and why?

High turnover, store closures, or quiet franchise exits are major red flags. This question measures system stability, territory health, and whether the corporate team addresses struggling owners or lets them fail.

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