4 Questions to Ask Before Buying a Campground Franchise
In recent years, an increasing number of Americans are taking a break from their busy schedules and retreating to nature. Camping is at an all-time high as more households flock into campgrounds to relax, connect with their family members, and grow their emotional well-being. Over 41.3 million Americans went for camping trips in 2017, with 73% participating three or more times in that year.
Buying a campground franchise enables you to invest in the rapidly-expanding industry and create a steady source of income. With over 1.4 million new households going out for camping for the first time, you can leverage on the steady flow of visitors to build a lucrative venture. However, it’s essential to understand the business you are getting into. Here are four questions you need to ask before buying a campground franchise.
1. Where is the Park Located?
The location of the RV Park and campground is arguably the most important consideration to make. It doesn’t have to tick all boxes, but it should be in good condition enough to attract well-paying visitors. Are there exciting attractions present? Is it easily accessible? Franchisors usually have a wide range of camping resorts for sale. You can choose a location that naturally attracts campers to the site.
2. What’s Your Target Demographic?
The 2019 North American Camping Report by Kampgrounds of America Inc. shows that for the over 1.4 million households camping for the first time, at least 56% are millennials. 51% identifying as non-white.
The millennial population has taken the industry by storm as more young families try to reconnect with nature. With 63% of millennial parents camping with their kids, it’s essential to make your family campground ‘kid-friendly.’ Remember, a fifth of the campers say a kid-friendly campsite is an essential factor when choosing which RV parks to visit.
3. What Amenities are Present in the Campground?
Before buying a campground franchise, it is vital to check the condition of the facilities present at the campsite. The type and number of cabins and RV spots available may determine your business model and revenue stream. Modern campground franchises have resort-like facilities that net more and better-paying tenants. Campers rank access to free Wi-Fi as one of the top three amenities they prefer in a campground. Offering more amenities can make the RV park appealing to campers and promote guest loyalty.
4. How Will You Finance the Deal?
Buying a campground franchise demands a substantial investment of money. You may also need to pay for franchising fees, marketing, and royalty payments. Most investors turn to one or more financiers to kickstart their business. You need to create a solid business plan that makes it easy to convince lenders to finance your project. Besides, you may opt for a debt financing option from your franchisor. Some franchisors offer partial or full loan plans to their franchisees through their financing companies.
Camping is increasingly gaining popularity among the American population. Buying a campground franchise is one way to achieve financial freedom by riding on the wave of the increasing number of campers in RV parks and family campgrounds. Asking the right questions before investing your money may help you avoid burning your fingers in the business.