DoubleTree by Hilton
DoubleTree by Hilton offers hotel franchises known for their welcoming tradition of greeting guests with a warm cookie upon arrival. Part of Hilton Worldwide, these establishments operate in the hospitality industry.
DoubleTree by Hilton franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $31,454,554 to $108,661,784 for a 225-room DoubleTree hotel and from $33,007,054 to $126,260,147 for a similar DoubleTree Suites hotel, excluding the cost of real property. [p.1]
What is the initial franchise fee?
The initial franchise fee is only applicable if you are installing an eforea spa in your Hotel, according to [p.49]. This fee is not refundable under any circumstances, as stated on [p.25].
What are the ongoing royalty and advertising fees?
Ongoing royalties are typically based on a percentage of the hotel's monthly gross room revenue and may also include percentages of gross food and beverage revenues, as detailed on [p.141]. There is no specified requirement for the franchisee to contribute to an advertising fund; however, the franchisee must advertise and promote their restaurant brands in a first-class manner using the franchisor’s identity and graphics standards at their own expense, as outlined on [p.74] and [p.162].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's approval, except for good cause. Good cause includes but is not limited to specific reasons such as those outlined on pages [p.5] and [p.306]. The franchisor may also have a right of first refusal to purchase the franchise instead. [p.5]
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for material breaches by the franchisee, such as failure to cure a breach or payment defaults [p.23-24]. Additionally, the franchisor may terminate the agreement without reasonable cause if no grounds for default or termination constitute 'reasonable cause' under the Virginia Retail Franchising Act or Virginia law [p.309].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The FDD states that there are no provisions granting franchisees a protected area or territory for either hotels [p.75] or food and beverage outlets [p.75]. However, under certain circumstances, the company may agree to provide a Restricted Area Provision, but this is not guaranteed and has specific limitations [p.76].
What training and ongoing support does the franchisor provide?
The franchisor provides required training courses for specific business and operational functions [p.66], such as reservations and revenue management, which must be completed with a minimum score of 80% [p.68]. Additionally, they offer orientation training as part of the certification process [p.66]. For ongoing support, the franchisor requires compliance with their Standards and may designate sites for training programs where fees apply, though they do not direct or supervise franchisee personnel [p.233, p.162].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide actual records of an existing outlet's financial performance if you are purchasing one. Additionally, they can supplement the information provided in Item 19 with possible performance scenarios at a particular location or under specific circumstances, but this must have a reasonable basis [p.101]. The franchisor does not make any financial performance representations other than providing actual records of an existing outlet if purchased [p.105].
What am I restricted to selling, and where must I buy supplies?
You are generally not restricted to selling specific items, but you may have operating restrictions that control your location, access to customers, what you sell, how you market, and your hours of operation [p.3]. For supplies, the franchise agreement may require you to buy or lease products or services from the franchisor or designated suppliers [p.50], though there is flexibility in purchasing certain software licenses through existing enterprise agreements or third-party suppliers [p.63].