The Luxury Collection Franchise Review

franchise logo

The Luxury Collection is graded based on our most recent FDD research!

Franchise Info

The Luxury Collection is a selection of hotels and resorts offering unique, authentic experiences that evoke lasting, treasured memories.

What is the upfront investment costs to be a franchise owner of a The Luxury Collection franchise?

The Luxury Collection has an initial franchise fee of up to $100,000, with a overall initial investment range from $138,156,490 to $214,086,490.

  • Initial Franchise Fee: $100,000
  • Total Investment: $138,156,490 to $214,086,490
  • Working Capital: $3,500 to $8,000
  • Royalty Fee: 5.0%

The upfront investment of any franchise opportunity includes several fees. Unlock this investment opportunity to better understand the specific costs required to purchase a The Luxury Collection, such as franchise fees, construction and costs, pre-opening marketing, and equipment purchases. It should be noted that, franchise companies are required to disclose all upfront fees. These are not only fees that are actually paid, but also commitments to fees you are required to pay.

Can you Afford an The Luxury Collection Franchise. Complete our Affordability Calculator to find out!

How much can I earn by owning a The Luxury Collection franchised business?

As with any new franchised business, there should be a solid ROI and net profit potential. The specific franchisee's income and the revenue from a The Luxury Collection franchise opportunity depends on a lot of different factors. One way to confirm the potential revenues or profits earned from a The Luxury Collection franchise investment is to analzye the franchisor's Item 19 within their FDD. This is called a financial performance representation. This is not required within a franchisor's disclosure and approximately 68% of all franchise companies that we have reviewed will disclose financial performance data within Item 19 of their FDD. Some franchise companies may disclose limited information such as average gross revenues. This type of financial disclosure is not always helpful to determine profitability for you directly. So review systemwide sales data with caution. As expected, typically earnings and owner's income are correspond to the overall size of the upfront investment. The larger the initial investment, the larger return you could expect to see. Another determining factor to profitability is based on the number of locations you own. If you buy multiple outlets (typically referred to as Area Development Agreements), you can anticipate that as you open the next location, you will generate more revenue and profits overall. Demand for your products, your labor costs in your state, commercial lease rates and several other variables are important factors in determining your profit margin and your personal income. Your financial success are associated with The Luxury Collection's success. Your returns and owner's income is not just reliant on how well your own location performs, you should assess how well the entire franchise system is operating. Determine how the franchisor earns income and review their financial returns.

For more details and system-specific data on the revenue of a The Luxury Collection franchise opportunity, unlock this franchise

How many franchise locations do they have?

As of the 2020 Franchise Disclosure Document, there are 11 franchised The Luxury Collection locations across the USA.

Did you know there are over 3,000 franchise opportunities across the United States. More than 80% have less than 10 locations.

Are there any The Luxury Collection franchise opportunities in my city?

Based on 2020 FDD data, The Luxury Collection has franchised locations in 10 states. There may be no locations in several states as each franchise plans their development strategy differently. Specific states also require franchise companies to register their franchise opportunity and file their Franchise Disclosure Document (FDD) with state examiners prior to awarding franchise opportunities to residents in that state. These registration states have examiners review a franchisor's FDD to ensure it complies state regulatory requirements. In addition to registration states, additional states have enacted supplemental franchise or business opportunity laws that mandate franchise companies to submit their franchise within the state. In most instances the filing is a notice within the state. Unlike franchise registration states, the franchise filing states do not review a franchisor's FDD.

CA
GA
IL
MA
MN
NC
NY
OR
TX
VT

Based on our research this franchise is expanding into new regions and could be available in your city. While planning your franchise purchase, you should be thinking about what is a good location for my business. Anlayze the potential customer base to assess that the area you are looking at has a need or a market for this franchise. Even the most popular franchises have cities that they are not successful in. The reasons why a specific franchised location can fail are plentiful. You should review not only the franchise itself, but anlayze areas where you think the franchise has a better chance of long-term success.

One of our advisors will have detailed knowledge about this brand. Unlock to learn more and connect with our researchers.

Last Reviewed: 2020

Sector: Lodging

Category: Hotel

The Luxury Collection Franchise STATS

Total Investment
$138,156,490 - $214,086,490
Franchise Fee
$100,000
Franchise agreement
Initial Term
20 Years
Renewal Term
N/A
Franchise outlet growth
2014
8
2019
11
Ongoing fees
Royalty
5.0%
ad fees
2.3%
# of franchised outlets
11

EXTRA INFORMATION

Do they provide any initial training and opening assistance?

Yes, they have an initial training program of 1287.50 hours. This includes 1264.50 hours of classroom training, 23 hours of on-the-job training, and 0 hours of online training. In their FDD they outline who's in charge of the training. Unlock to find out more.


Online 0
On-the-Job 23
Classroom 1264.50
Total 1287.50

Do they offer Territory Rights?

The Luxury Collection does NOT offer territory protections. For an explanation of territory rights, unlock this franchise for more details.

Do they have computer and technology support in place?

Yes, The Luxury Collection offers comprehensive support for franchisees. Unlock this franchise to find out more.


When did they start franchising?

They began franchising in 1998. The average Hotel franchise began franchising in 1991.


Do they offer financing support?

Yes. They offer certain financing options within Item 10 of their FDD.

Create your FREE account to access additional data on The Luxury Collection, and more!
Franchise Grade is dedicated to providing advisory services that can help you make confident franchise investment decisions.
Finding the best franchise means reviewing several franchise options to determine the ideal fit for you.
Unlock this franchise for instant access to our research reports, including:
  • Growth breakdown
  • Turnover breakdown
  • Financial transparency
  • Initial and renewal terms
  • Royalties and advertising fees
  • Key Franchise FAQs
Need more reasons?
  • Our grade and free access to consult with a franchising expert
  • How much do franchise owners historically earn?
  • Do they provide Veteran or First Responder discounts?
  • Do they use public figures to promote their franchise?
  • Do they disclose any bankruptcies?
  • Is this franchise affiliated with any other franchise opportunities or private equity investment groups?
  • How many new outlets have they sold over the last 5 years?
  • How many franchised outlets have closed over the last 5 years?
  • How many new outlets have they sold in the last 5 years?
  • How many franchised outlets have terminated over the last 5 years?
  • Do they operate any company or affiliate owned outlets?
  • How many years is their initial and renewal term lengths?
  • How do they solve franchisee disputes?
  • How long has the franchisor been in business?
  • Are they expanding internationally?
  • How are the royalty, advertising and marketing funds administered and managed by the franchisor?
  • How are territories defined?
  • What support can you expect to receive from the franchisor?
  • Why has new franchise outlet growth been so low?
  • What are the critical requirements for managing a successful franchised location in this brand?
  • Are you required to work in the outlet or is this a passive investment opportunity?
  • Will they refund any upfront fees under certain circumstances?
Access is 100% free, instant, and unlimited!