Postcard Cabins Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$8,517,800 - $11,597,300
Franchise Fee
$50,000
Business Summary
Postcard Cabins offers outdoor-oriented lodging facilities that provide high-quality accommodations in scenic natural locations. Each property features a series of 30 to 70 fixed or mobile cabins, each equipped with one or more beds, a kitchen, and a bathroom, all connected to essential utilities. Additionally, every Postcard Cabins property includes at least one clubhouse for group gatherings, dining, and refrigerated storage. The brand anticipates converting existing outdoor facilities into Postcard Cabins properties, allowing for variations in cabin numbers, layout, and amenities across locations. Postcard Cabins may also require location-specific programming for its guests.
Corporate History
Postcard Cabins is a new brand, with its franchising operations beginning in October 2024. The franchisor, MIF, L.L.C., was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. On or about the effective date of the FDD, Marriott International acquired the intellectual property and business operating system of Getaway House, Inc. Getaway House, Inc. had been operating cabin outposts since 2015, with 29 outposts in the United States. These existing Getaway outposts are expected to convert into franchised Postcard Cabins properties under new franchise agreements with MIF, L.L.C.
Financial Overview
Investment Range
$8,517,800 - $11,597,300
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$100,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$7,380,000
Equipment Costs (High)
$10,055,000
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C. presents a strong financial position, evidenced by its audited financial statements which received an unqualified opinion from Ernst & Young LLP. As of December 31, 2023, Postcard Cabins had total assets of $409,712,000 and total liabilities of $6,791,000, resulting in substantial member's equity of $402,921,000. The company has shown consistent growth in its operating income, rising from $31,543,000 in 2021 to $43,646,000 in 2023, with net income following a similar positive trend, reaching $64,157,000 in 2023. A significant portion of its assets, approximately $376,990,000 in 2023, is due from related parties, primarily its parent company, Marriott International, Inc., and generates substantial interest income. While Postcard Cabins does not maintain a cash balance, recording all transactions through related party accounts, its auditors did not express any going concern qualifications, indicating confidence in its ability to continue operations.
Financing Details
Postcard Cabins generally does not offer direct or indirect financing for franchised properties or guarantee franchisee loans. However, in limited circumstances and at its sole discretion, Postcard Cabins may offer credit support, such as a contingent guaranty for a portion of a third-party loan, or provide a mezzanine loan. The specific terms of any such financing, including amounts, interest rates, repayment obligations, fees, security interests, and default provisions, would vary depending on factors like market opportunities, property characteristics, economic conditions, and the franchisee's commitment. Postcard Cabins does not use standard form documents for these potential financing arrangements.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
Postcard Cabins, through its affiliate Marriott International, Inc., is involved in numerous ongoing legal matters. Several active class action lawsuits and administrative investigations stem from a 2018 data security incident and a smaller 2020 incident, with claims covering negligence, privacy violations, and consumer protection. These include In re Marriott International Customer Data Security Breach Litigation (ongoing with appeals filed in 2024), City of Chicago v. Marriott International, Inc. (ongoing with discovery extending to August 2024), and various administrative inquiries from U.S. Attorneys General, the Federal Trade Commission, and regulatory authorities in Canada and Australia. A Turkish Personal Data Protection Authority action from 2019, for which Marriott paid a fine, is now slated for retrial. Postcard Cabins also faces industry-wide investigations and class-action lawsuits regarding destination, resort, and amenity fees, including District of Columbia v. Marriott International, Inc. and Todd Hall v. Marriott, International, Inc., both filed in 2019 and ongoing, alleging violations of consumer protection laws. Marriott International has initiated litigation too, such as an arbitration filed in August 2023 against a franchisee seeking over $1 million in unpaid fees, and a lawsuit in 2022 against a former franchisee alleging breach of implied covenant of good faith. Additionally, two new putative class-action lawsuits, Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A., were filed in early 2024, alleging unlawful information sharing and price-fixing under U.S. antitrust laws. Previous, concluded actions include a data incident case and two resort fee cases that were settled, and a 2016 lawsuit related to a merger that was dismissed after a confidential settlement.
Bankruptcy History
Postcard Cabins has no bankruptcy history to report in this disclosure document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The Postcard Cabins franchise agreement is not renewable, and franchisees should not expect any right to continue operating under the brand after the initial term expires. However, after the agreement ends, Postcard Cabins may, at its sole discretion, agree to enter into a new franchise agreement. This new agreement would be based on the franchisor's then-current terms and conditions, which could differ significantly from the original agreement, including changes to franchise fees and term duration.
Training & Support Program
Franchisor Assistance
Postcard Cabins provides comprehensive pre-opening assistance, including product quality standards and information for planning, constructing, renovating, and furnishing cabins and clubhouses, along with specifications for furniture, fixtures, equipment, and inventory. It reviews construction drawings for compliance, conducts periodic assessments during construction, and offers input on procuring supplies. Before opening, Postcard Cabins conducts on-site visits to ensure readiness and provides initial training for staff and general managers on systems and operations. Post-opening, franchisees receive ongoing support through representatives available for consultation on design and operation. Postcard Cabins provides mandatory electronic systems, such as its reservation, property management, and yield management systems, with ongoing support costs often covered by the Program Services Contribution. The franchisor manages a Marketing Fund for brand strategy, advertising, promotions, and loyalty programs (Marriott Bonvoy), and a centralized travel agent commission processing program. Mandatory ongoing training programs are included in a learning and development bundle fee, and general managers are required to attend regional conferences in certain years. Postcard Cabins' sales organizations, including the Global Sales Organization (GSO), offer sales and support services, with GSO participation being mandatory. Optional marketing and digital services are also available for additional fees.
Initial Training Hours
50
Training Location
Web-based or at a location designated by Postcard Cabins
Ongoing Support
After opening, Postcard Cabins franchisees receive ongoing support through representatives available for consultation on property design and operation. The franchisor provides access to and support for essential electronic systems, including a reservation system, property management system, and yield management system, with many of these costs covered by the Program Services Contribution. Postcard Cabins manages a Marketing Fund to support brand strategy, advertising, and promotions, and oversees loyalty programs like Marriott Bonvoy, along with a centralized travel agent commission processing program. Franchisees benefit from a learning and development bundle that covers required ongoing training programs, and general managers are expected to attend regional conferences periodically. Additionally, Postcard Cabins' sales organizations, including the mandatory Global Sales Organization, offer sales and support services, with various optional marketing and digital services also available at an additional cost.
Franchise Requirements
Ideal Candidate Profile
Postcard Cabins seeks franchisees who are qualified to operate its properties in accordance with the brand's standards and franchise agreement. The franchisor evaluates candidates based on their managerial and operational experience, skills, capacity, capabilities, and philosophy. If a candidate is not deemed qualified to operate the property directly, they will be required to hire an approved management company. Additionally, the franchisor determines guaranty requirements based on the proposed franchisee's financial information and ownership structure.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Postcard Cabins franchisees will not receive an exclusive territory and may not even be granted a territory. If a territory is granted, it will be non-exclusive and its specific terms, geographic size, and duration will depend on the market where the site is located. A granted territory may be defined as a radius around the property or delineated by streets, highways, or other geographical boundaries, but it will not include the right to develop additional properties or enlarge the existing one within that area.
Staffing Notes
Postcard Cabins requires that a general manager, who has successfully completed the franchisor's training program, directly supervise the business on the premises and dedicate full-time to the property's management and operation, along with other managers. While the franchisor encourages employing a suitable number of qualified individuals, it does not specify a numerical staff count. All employment decisions are made solely by the franchisee or its management company, as Postcard Cabins does not control these policies. Additionally, franchisees must implement a security policy that includes providing associate alert devices with geolocation capabilities to staff members who regularly interact with guests in enclosed spaces.