Cobblestone Inn & Suites Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$99,999 - $15,496,699
Total US Locations
121
Business Summary
Cobblestone Hotels, LLC offers franchises for individuals and entities to own and operate lodging facilities under the Cobblestone Inn & Suites, Cobblestone Hotel & Suites, or Cobblestone Suites brands. These facilities provide upper-midscale, high-quality lodging and accommodation services, primarily located in underserved communities or larger community suburbs. Franchisees can either build a new hotel or convert an existing property, with a minimum of 35 guest rooms, catering to a broad range of travelers, businesses, and local community members.
Corporate History
Cobblestone Hotels, LLC, a Wisconsin limited liability company, was organized on January 7, 2012. It began offering franchises of the type described in this disclosure document in January 2013. While Cobblestone Hotels, LLC has never operated a lodging facility of this type itself, its affiliated companies have owned, operated, and managed lodging facilities since 2002. In October 2018, Cobblestone Hotels, LLC purchased the 'Boulders Inn & Suites®' brand. The 13 existing properties under that brand later converted to 'Cobblestone Inn & Suite®' lodging facilities, and the 'Boulders Inn & Suites®' brand was discontinued in 2019. The company also operates under various other brand names, including 'Cobblestone Hotel & Suites®', 'Cobblestone Inn & Suites®', 'Cobblestone SuitesTM', 'Boarders Inn & Suites by Cobblestone®', 'Key WestTM', 'CenterstoneTM', and 'Riverstone Suites by Cobblestone Hotels TM'.
Financial Overview
Investment Range
$99,999 - $15,496,699
Franchise Fee (High)
$40,000
Equipment Costs (Low)
$10,000
Equipment Costs (High)
$1,908,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Cobblestone Hotels, LLC's financial condition, as presented in its financial statements, raises questions about its ability to provide services and support to franchisees. For instance, the Illinois Attorney General has imposed a financial assurance requirement that initial franchise fees be deferred until Cobblestone Hotels, LLC fulfills its initial obligations and the franchisee begins business, due to concerns about its financial state.
Financing Details
Cobblestone Hotels, LLC does not offer any direct or indirect financing options. Franchisees are responsible for arranging their own funding, as the franchisor does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
121
Franchised Units
121
Corporate Units
0
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cobblestone Hotels, LLC has no litigation to report.
Bankruptcy History
Cobblestone Hotels, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Term
2 years
Renewal Conditions
Cobblestone Hotels, LLC states that the franchise agreement automatically renews for additional two-year periods after the initial term, unless either the franchisor or franchisee provides written notice of termination at least six months before the initial term expires. If specific renewal rights are granted by law or offered by the franchisor, franchisees would need to comply with all material provisions, pay all outstanding monetary obligations, provide 180 days written notice of desire to renew, agree to remodel and renovate the facility to current standards, sign a general release (where permitted by law), execute a new franchise agreement (which may have different terms and fees), and pay the then-current initial fee, plus any other reasonable conditions set by the franchisor.
Training & Support Program
Franchisor Assistance
Cobblestone Hotels, LLC provides several types of assistance to its franchisees. Before a Cobblestone Lodging Facility opens, the franchisor assists with negotiating the protected area and approves the site, which typically takes 30 days. It also provides the Rules and Regulations Manual and standard plans for the lodging facility. The franchisor approves the franchisee's chosen architect and contractor, reviews construction plans, and may inspect the site during construction. An initial training program is provided for the General Manager, and up to nine days of opening assistance and staff training are offered on-site. After opening, Cobblestone Hotels, LLC provides ongoing access to the confidential operations manual via an extranet portal, conducts periodic quality assurance inspections, protects the "Cobblestone" trademarks, and may hold annual conferences. The franchisor also offers advisory services related to guest service and operations upon request, provides access to a central reservation system (CRS), property management system (PMS), and call center reservation services (CCR), and requires participation in the Cobblestone Rewards loyalty program. It can also establish pricing requirements and discount programs. Additionally, the franchisor provides information regarding quality and uniformity standards to suppliers or franchisees.
Initial Training Hours
49.5
Training Location
Corporate headquarters in Neenah, WI
Ongoing Support
Cobblestone Hotels, LLC provides ongoing support to franchisees through various channels. This includes loaning or providing access to the confidential operations manual (Rules and Regulations) via a private extranet called the Cobblestone Portal. The franchisor may conduct periodic quality assurance inspections of the lodging facility. It also protects the "Cobblestone" name, trademarks, and copyrights. Cobblestone Hotels, LLC may hold annual conferences and/or training and motivational programs, which the General Manager is required to attend. The franchisor sponsors loyalty programs like "Cobblestone Rewards," in which franchisees must participate. Upon request, advisory services related to guest service, property sales, and operations are available, though franchisees must reimburse expenses. Access to a central reservation system, global distribution services, email/internet, and credit card processing is also provided. The franchisor may establish pricing requirements for products and services and requires participation in discount or promotional programs. They also provide information regarding standards of quality and uniformity upon request.
Franchise Requirements
Ideal Candidate Profile
The FDD does not explicitly define an "ideal candidate profile" for the franchisee, beyond being a "qualified individual or entity." However, it does state that if the franchisee chooses not to hire a management company, their General Manager must have at least five years of hotel general management experience and must successfully complete the franchisor's training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Cobblestone Hotels, LLC defines each franchise territory as a 5-mile radius around the specific franchised location, referred to as the "Protected Area." The franchisor will determine the exact Protected Area and the minimum number of guest rooms for each facility, which will be no less than 38. These determinations are made based on factors such as the hotel's location, size, and local development trends.
Staffing Notes
Cobblestone Hotels, LLC requires that each Cobblestone Lodging Facility be staffed by a sufficient number of competent and properly trained employees. The General Manager, who must successfully complete the franchisor's training program, is responsible for direct, on-premises supervision of the facility. If the franchisee chooses not to hire a management company, the General Manager must have at least five years of hotel general management experience. All employees must practice good personal hygiene and wear clean, neat standard attire or uniforms as specified in the Rules and Regulations. The franchisor may require additional training for staff if the facility is not meeting standards, new standards are introduced, or new employees are unfamiliar with procedures.