Boarders Inn & Suites by Cobblestone Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$151,999 - $23,981,999
Franchise Fee
$30,000
Total US Locations
16
Business Summary
Boarders Inn & Suites by Cobblestone offers franchises for establishing and operating upper-midscale, high-quality lodging facilities that provide accommodation services. These facilities are typically located in underserved communities with populations over 3,000 or in the suburbs of larger areas. Boarders Lodging Facilities are available in various sizes, with a minimum of 29 guest rooms, and cater to a broad range of travelers, businesses, and local community members, including conventions and tour groups.
Corporate History
Cobblestone Hotels, LLC was organized on January 7, 2012, as a Wisconsin limited liability company. Although the franchisor itself has never operated a Boarders Lodging Facility business, its affiliated companies have been involved in owning, operating, and managing lodging facilities since 2002. Cobblestone Hotels, LLC began offering franchises for Boarders Inn & Suites by Cobblestone lodging facilities in January 2013.
Financial Overview
Investment Range
$151,999 - $23,981,999
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
5%
Equipment Costs (High)
$11,800,000
Working Capital
$112,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditors for Cobblestone Hotels, LLC have issued an unqualified opinion, indicating that its financial statements fairly present its financial position and results of operations. The company maintains significant cash balances; however, a portion of these funds, specifically $2,216,631 as of December 31, 2023, exceeds federally insured limits. Management believes its accounts receivable are collectible, and the auditors found no substantial doubt about Cobblestone Hotels, LLC's ability to continue as a going concern.
Financing Details
Boarders Inn & Suites by Cobblestone does not offer any direct or indirect financing to its franchisees. Additionally, Boarders Inn & Suites by Cobblestone does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
16
Franchised Units
16
Corporate Units
0
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Boarders Inn & Suites by Cobblestone has no litigation history to report.
Bankruptcy History
Boarders Inn & Suites by Cobblestone has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
1 years
Renewal Conditions
Boarders Inn & Suites by Cobblestone franchisees have no inherent right to renew their Franchise Agreement upon expiration unless state law mandates it. If an offer to renew is made by Boarders Inn & Suites by Cobblestone, franchisees must meet several conditions. These include complying with all material terms of the existing agreement and other agreements with Boarders Inn & Suites by Cobblestone or its affiliates, including all financial obligations. Franchisees must also provide written notice of their desire to renew at least 180 days before the agreement ends. They will be required to agree in writing to remodel, modernize, redecorate, and renovate their facility, replacing furniture, fixtures, supplies, equipment, and amenities to comply with the then-current Rules and Regulations and brand image. Franchisees must also, if permitted by law, sign a general release of claims against Boarders Inn & Suites by Cobblestone and its affiliates. Finally, they will need to execute Boarders Inn & Suites by Cobblestone's then-current form of Franchise Agreement, which may have materially different terms and potentially greater or additional fees, and pay Boarders Inn & Suites by Cobblestone's then-current Initial Fee.
Training & Support Program
Franchisor Assistance
Boarders Inn & Suites by Cobblestone provides comprehensive assistance to its franchisees, starting with pre-opening support. This includes approving the proposed site, providing the Rules and Regulations Manual with system standards and specifications, and supplying standard plans for the lodging facility. Boarders Inn & Suites by Cobblestone also reviews and approves the franchisee's chosen architect and contractor, as well as detailed construction plans, which may incur a fee. They conduct periodic inspections during construction or conversion and a final inspection before opening. Franchisees and their General Managers must complete a mandatory Training Program. Ongoing assistance includes providing access to confidential operations materials through the Cobblestone Portal and conducting regular quality assurance inspections. Boarders Inn & Suites by Cobblestone protects its trademarks and copyrights, indemnifying franchisees for authorized use. They may hold annual conferences and training programs, with mandatory attendance for the General Manager. Franchisees must participate in loyalty programs like "Cobblestone Rewards." Upon request, Boarders Inn & Suites by Cobblestone offers advisory services related to guest service, property sales, and operations, though franchisees must cover associated expenses. Additionally, franchisees receive access to a central reservation system, and Boarders Inn & Suites by Cobblestone may establish pricing requirements and provide information on quality and uniformity standards.
Initial Training Hours
50
Training Location
Corporate headquarters in Neenah, WI
Ongoing Support
After opening, Boarders Inn & Suites by Cobblestone provides franchisees with ongoing access to confidential operations materials through the Cobblestone Portal and conducts regular quality assurance inspections. Boarders Inn & Suites by Cobblestone may hold annual conferences and training programs, with mandatory attendance for the General Manager. Franchisees must participate in loyalty programs such as "Cobblestone Rewards." Upon request, Boarders Inn & Suites by Cobblestone offers advisory services related to guest service, property sales, and operations, though franchisees must cover associated expenses, including lodging for representatives. Additionally, franchisees receive access to a central reservation system, and Boarders Inn & Suites by Cobblestone may establish pricing requirements and provide information on quality and uniformity standards.
Franchise Requirements
Ideal Candidate Profile
Boarders Inn & Suites by Cobblestone seeks qualified individuals and entities to operate its lodging facilities. While there are no explicit educational or experience requirements for the on-site General Manager initially, if a franchisee chooses not to hire an approved management company, their General Manager must possess at least five years of hotel general management experience. All General Managers must successfully complete Boarders Inn & Suites by Cobblestone's Training Program before the hotel opens.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
5
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Each Boarders Inn & Suites by Cobblestone franchise is granted a "Protected Area" defined as a 5-mile radius around the specific franchised location, which is detailed in Exhibit A of the Franchise Agreement. Within this area, Boarders Inn & Suites by Cobblestone will not operate or grant a license to another Boarders Lodging Facility, provided the franchisee maintains at least the minimum number of guest rooms and is not in default. The specific size and number of guest rooms for each Protected Area are determined by Boarders Inn & Suites by Cobblestone based on factors such as hotel location, size, and local development trends.
Staffing Notes
Each Boarders Inn & Suites by Cobblestone hotel must have a General Manager who successfully completes the required Training Program before the facility opens. If the General Manager oversees multiple hotels, assistant managers must also complete the training. The hotel must always be under the General Manager's (or owner's) direct, on-premises supervision and be staffed with a sufficient number of competent and properly trained employees. If a franchisee chooses not to hire a management company, their General Manager must have at least five years of hotel general management experience. Boarders Inn & Suites by Cobblestone reserves the right to require the franchisee to hire an approved management company to manage the hotel at any time. Staffing also includes specific roles such as front desk, breakfast attendant, housekeeping, lounge bartender, and maintenance personnel, all of whom must adhere to uniform standards.