Grand Welcome logo

Grand Welcome Franchise

Audited Financials
HospitalityEst. 2019Incline Village, NV
www.grandwelcome.com

Risk Score

Pending analysis

Investment Range

$67,750 - $169,750

Franchise Fee

$41,650

Total US Locations

64

Business Summary

Grand Welcome operates a vacation home rental and management services business under its trademarks. The franchised business provides listing, maintenance, and cleaning services to property owners, and offers assistance and concierge services to guests who rent these vacation homes.

Corporate History

Grand Welcome Franchising, LLC was formed as a Wyoming limited liability company on October 8, 2019, with its principal business address in Incline Village, Nevada. The company began offering franchises on November 25, 2019, for vacation home rental and management services under its 'Grand Welcome' trademarks. While Grand Welcome Franchising, LLC does not directly operate businesses of the type franchisees will run, its parent company, Grand Welcome Holdings, Inc. (formed in Delaware on July 2, 2019), is its owner. An affiliate, Grand Welcome IP, LLC, formed on September 21, 2018, owns one of the primary trademarks and licenses its use to Grand Welcome Franchising, LLC. Other affiliates of Grand Welcome have been operating vacation home rental and management businesses since 2015.

Financial Overview

Investment Range

$67,750 - $169,750

Franchise Fee (Low)

$41,650

Franchise Fee (High)

$109,000

Royalty %

8%

Marketing %

1%

Equipment Costs (Low)

$500

Equipment Costs (High)

$5,000

Working Capital

$25,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The financial condition of Grand Welcome Franchising, LLC, as shown in its financial statements, raises questions regarding its ability to provide necessary services and support to its franchisees.

Financing Details

Grand Welcome Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations on behalf of franchisees. Franchisees are responsible for securing their own funding for the business.

Performance Metrics

Total US Locations

64

Franchised Units

62

Corporate Units

2

Franchising Since

2019

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their agreement, Grand Welcome franchisees must be in full compliance with the current franchise agreement and must not have committed more than three defaults during the current term. Franchisees are required to provide at least nine months' written notice before the end of their term, execute a new franchise agreement, and pay a renewal fee equal to 50% of the then-current Tier 2 initial franchise fee. They must also repair, upgrade, or replace their equipment and other business assets to meet Grand Welcome's current specifications. Additionally, franchisees must sign a general release and comply with all then-current qualifications and training requirements, including completing any additional training. The new franchise agreement may include terms and conditions that are materially different from their original agreement.

Training & Support Program

Franchisor Assistance

Grand Welcome provides a range of support to its franchisees. Before opening, Grand Welcome designates territory boundaries, sets Minimum Performance Standards, and provides the Operations Manual, an equipment list, and a standard Unit Listing Agreement for franchisee revisions and approval. Initial training is offered virtually or at a field office. Grand Welcome also provides samples of initial advertising materials and recommends product and service prices. After opening, Grand Welcome offers mandatory and optional additional training programs, including annual meetings. Remedial in-territory training is available for a fee, and individualized assistance is provided by phone, email, or video conferencing within reasonable limits. Additionally, Grand Welcome maintains its website to list rental units and manages online travel agency accounts for listings and guest payments. The company sets rental rates using proprietary algorithms, approves proposed rental units, and provides specifications for equipment and approved supplier lists. Grand Welcome also disburses revenue to franchisees through a centralized payment system after deducting applicable fees.

Initial Training Hours

79

Training Location

Grand Welcome University, Virtual Sessions

Ongoing Support

After opening, Grand Welcome provides ongoing support through mandatory or optional additional training programs, including an annual business meeting or franchisee conference that can last up to five days per year at a designated location. Grand Welcome also offers remedial in-territory training and assistance upon request, for which franchisees are responsible for the trainer's costs. Franchisees can receive individualized support by phone, email, or video conferencing within reasonable limits. Additionally, Grand Welcome provides updated samples of advertising and promotional materials from time to time.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Hybrid

Owner Participation

Hands-On

Territory Type

exclusive

Territory Size Requirements

Grand Welcome territories are defined by specific zip codes, partial zip codes, or other geographic boundaries within a town, city, or county. The size of each territory is determined based on its Potential Territory Revenue (PTR), which is calculated using industry-recognized, third-party short-term rental data and analytics. This calculation considers the total number of currently available vacation home rental units in the territory, multiplied by the average number of rented nights per unit, and multiplied by the average daily rental rate. Each Grand Welcome territory must have a minimum PTR of $20,000,000.

Staffing Notes

Grand Welcome requires that the franchisee, or their approved general manager, personally supervises and manages the day-to-day operations of the business. If a manager is appointed, they must be approved by Grand Welcome, dedicate full-time to the role, and not have any business relationships with competitors. All owners and general managers must successfully complete Grand Welcome's Initial Management Training Program. Franchisees must employ sufficient staff and/or contractors for property maintenance, cleaning, and other services to ensure prompt and efficient delivery of vacation home rental and management services according to Grand Welcome's standards. This includes ensuring all personnel are properly trained, present a clean appearance, offer courteous service, and wear Grand Welcome-branded clothing as required.