Risk Score
Pending analysis
Investment Range
$109,000 - $16,142,775
Franchise Fee
$15,000
Total US Locations
478
Business Summary
Kampgrounds of America, Inc. (KOA) offers franchises to develop and operate recreational vehicle parks and campgrounds. KOA campgrounds provide camping facilities and services to the public, accommodating travelers using recreational vehicles, travel trailers, and tents. The business operates under the KOA brand, with different categories like KOA Journey, KOA Holiday, and KOA Resort, each having specific service and quality standards. KOA aims to offer clean and comfortable camping accommodations.
Corporate History
Kampgrounds of America, Inc. (KOA) was founded in September 1960 as a Montana corporation. KOA began operating, owning, and leasing campgrounds in June 1962, and started selling franchises for KOA campgrounds in October 1963. The company also has an affiliate, KOA Canada, which has been franchising campgrounds in Canada since October 1968. In 2019, KOA launched a separate venture called Terramor Outdoor Resorts, offering a glamping experience that is distinct from traditional KOA campgrounds and is not currently sold as a franchise.
Financial Overview
Investment Range
$109,000 - $16,142,775
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$45,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$46,000
Equipment Costs (High)
$160,000
Working Capital
$65,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Kampgrounds of America, Inc. (KOA) demonstrates strong financial health with net incomes of approximately $9.5 million in 2024, $21.3 million in 2023, and $40.2 million in 2022. The company's financial statements for these years have received an unqualified opinion from its independent auditor, indicating that they present fairly, in all material respects, KOA's financial position and cash flows. The auditor did not identify any conditions that would raise substantial doubt about KOA's ability to continue as a going concern.
Financing Details
Kampgrounds of America, Inc. (KOA) does not offer any direct or indirect financing to help franchisees establish their KOA campground. KOA also does not guarantee any loans, leases, or other financial obligations that franchisees may incur. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
478
Franchised Units
427
Corporate Units
51
Avg Square Footage
2,000
Franchising Since
1963
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Kampgrounds of America, Inc. (KOA) is currently involved in one pending lawsuit. This case, filed in August 2024, alleges that KOA used the plaintiffs' intellectual property on its koa.com website without permission. The plaintiffs are seeking damages for copyright and trademark infringement, failure to attribute authorship, invasion of privacy/publicity rights, and violations of North Carolina's Unfair and Deceptive Trade Practices Act. KOA disputes these allegations and claims, having filed its answer in November 2024.
Bankruptcy History
Kampgrounds of America, Inc. (KOA) has no bankruptcy history to report for itself or any of its predecessors or executive officers.
Agreement Terms
Initial Term
5 years
Renewal Conditions
To renew their franchise agreement, Kampgrounds of America, Inc. (KOA) franchisees must be in full compliance with their existing Franchise Agreement and provide KOA with written notice of their intent to renew. They are required to upgrade their campground business to meet KOA's then-current standards and fulfill all monetary obligations. Franchisees must sign a general release and provide evidence of maintaining property control for the renewal term. They also need to execute KOA's then-current franchise agreement, which may contain materially different terms and conditions, including potential changes to the protected territory. Additionally, neither the franchisee nor any of their affiliates may own or operate another recreational vehicle park or campground business under a brand other than KOA. A Renewal Expiration Fee of $7,500 is also required if KOA permits renewal after the agreement's expiration.
Training & Support Program
Franchisor Assistance
Kampgrounds of America, Inc. (KOA) provides extensive support to its franchisees both before and after opening. For new constructions, KOA assists with site review, territory designation, and prepares a scale design and development plan, including consultations on design and construction, approval of pre-construction plans, and provision of standard KOA signs and promotional guidance for opening. For conversions, KOA offers promotional guidance, loans a toll-free number, and facilitates a one-day photo shoot. All franchisees receive the KOA Quality Assurance & Policy Manual and access to technology systems like KampSight/K2 (campground management system) and eKamp (franchise intranet system), along with a temporary webpage on koa.com. Post-opening, KOA offers training at KOA University, field support services, information on equipment and supply pricing, distribution of the annual KOA Campgrounds Directory, and maintenance of its technology systems. KOA also collaborates with manufacturers and suppliers to promote camping and inspects campgrounds for compliance with standards, while managing the Advertising Fund.
Initial Training Hours
45
Training Location
KOA Headquarters in Billings, Montana
Ongoing Support
After opening, Kampgrounds of America, Inc. (KOA) franchisees receive field support services to assist with business operations. KOA provides information regarding equipment and supply prices, distributes the annual KOA Campgrounds Directory, and maintains its campground management system (KampSight/K2), intranet system (eKamp), and koa.com website. KOA works with manufacturers and suppliers to promote camping and inspects campgrounds to ensure compliance with its standards. KOA also manages and administers the Advertising Fund for general brand promotion. Additionally, KOA offers various optional training courses through eKamp, including both in-person and virtual formats, accessible to authorized staff at no charge. Franchisees are also required to attend at least one annual KOA Convention, which covers finance and operations topics.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
Kampgrounds of America, Inc. (KOA) does not use a standardized formula for defining territory size, shape, or boundaries; these factors vary depending on the characteristics of each location, the surrounding area, the type of campground operation, market conditions, geography (including road and highway networks), and proximity to other KOA campgrounds. Generally, KOA grants a minimum territory defined as a 1-mile radius surrounding the campground.
Staffing Notes
Kampgrounds of America, Inc. (KOA) franchisees are responsible for recruiting, hiring, and training all employees for their campground business, including determining employment terms, compensation, and work schedules. KOA franchisees are also solely responsible for employee supervision, maintaining employment records, and handling discipline or termination. They must clearly notify employees that they are employed by the franchisee, not KOA, and are responsible for administrative functions like payroll and workers' compensation insurance. If the franchisee chooses not to personally operate the campground, it must be overseen by an on-premises manager who successfully completes KOA's initial training program within their first 12 months of employment. KOA may require the franchisee to disclose the manager's identity and have them, or any management company, sign a non-disclosure agreement regarding confidential information.