DoubleTree with Piebird
DoubleTree by Hilton operates apartment collection properties, offering residents hotel-like amenities. Known for combining comfort with convenience, these properties fall within the apartment management and hospitality industries.
DoubleTree with Piebird franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a typical 100 unit Apartment Collection by Hilton apartment hotel, excluding real property, is estimated to be between $1,427,321 and $64,896,039. [p.1]
What is the initial franchise fee?
The initial franchise application fee, referred to as the "Franchise Application Fee," must be paid when submitting the Franchise Application. This fee is non-refundable except under specific conditions outlined in the FDD [p.27].
What are the ongoing royalty and advertising fees?
Franchise royalty fees are generally based on a percentage of the hotel's monthly gross room revenue and may also include percentages of gross food and beverage revenues and other applicable revenues [p.114]. There is no mention of specific advertising fees, but franchisees are required to advertise and promote their hotels in a first-class manner using Hilton’s identity and graphics standards at their own expense [p.135] and must submit all advertising materials for approval before use [p.135].
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 transfer ownership of your franchise without good cause. Good cause includes but is not limited to specific reasons, as outlined by the franchisor [p.265]. The franchisor can also exercise a right of first refusal to purchase the franchise in such cases [p.265].
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, p.22]. Additionally, termination is allowed without reasonable cause in Virginia if no stated grounds constitute 'reasonable cause' under relevant laws [p.268].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts only mention a net worth requirement but do not specify any liquid capital requirement for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. The FDD indicates that there are no provisions granting franchisees a protected area or territory [p.75]. However, under certain circumstances, the company may agree to provide a Restricted Area Provision for new developments or conversions, but this is not guaranteed and typically has a shorter duration than the term of the Franchise Agreement [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 to their satisfaction [p.201]. Additionally, they offer self-paced web-based training for OnQ Rate and Inventory Management before the hotel opens [p.68]. However, ongoing personnel policies or direct supervision are not provided by the franchisor over franchisee staff [p.201, p.66].
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 if you are purchasing one. Additionally, they can supplement the information provided in Item 19 with possible performance at a particular location or under specific circumstances, but they do not make representations about future financial performance or past performance of company-owned or franchised outlets [p.98].
What am I restricted to selling, and where must I buy supplies?
You are generally not restricted to selling specific items, but the franchise agreement may prohibit you from operating a similar business during the term of the franchise. Regarding supplies, while you have some flexibility, the franchise agreement requires you to buy or lease products or services from the franchisor or their designees, from suppliers they permit, or in accordance with their specifications [p.49]. This includes items that may be more expensive than those available on your own [p.3].