Franchise Deep Dive: Kampgrounds of America Franchise Costs, Fees, Profit and Data

Company overview

Kampgrounds of America (KOA) is a well-known franchise of campgrounds that operates in North America. It is the largest system of privately held campgrounds in the world. KOA campgrounds offer a wide range of amenities and services for campers, including recreational vehicle (RV) sites, tent camping areas and cabins.

KOA was founded in 1962 by Billings, Montana, businessman Dave Drum. Drum's vision was to create a network of campgrounds that would provide consistent and high-quality amenities for travelers across North America. The first KOA campground opened on the banks of the Yellowstone River. It had campsites for tents and RVs, as well as a small store and basic amenities. Recognizing the potential for expansion, Drum adopted a franchising model for KOA.

The iconic yellow sign with the distinctive KOA logo became a recognizable symbol for the campgrounds. This branding helped travelers easily identify and locate KOA campgrounds along highways and roads. KOA experienced significant growth during the 1960s and 1970s, expanding its network of campgrounds across the U.S. and into Canada. The franchise model allowed for consistency in amenities and services while accommodating regional differences.

While KOA initially focused on traditional camping with tents and RVs, it also expanded to offer a variety of accommodations, including cabins and lodges. This diversification appealed to a broader range of campers.

Campground types

Today, Kampgrounds of America is the largest network of privately owned campgrounds globally, with over 500 locations across North America.

KOA offers three different types of campground franchise opportunities: KOA Journey, Holiday and Resort properties, which all provide campers with memorable experiences.

Journey: This is ideal for campers who want quick getaways or to get a good night’s sleep before hitting the road again. They are conveniently located along North America’s byways and highways to give campers easy access from the road. All Journey Campgrounds include basic amenities such as clean bathrooms with hot water, laundry facilities, playgrounds, a KOA store and friendly, knowledgeable staff.

Holiday: This is a fun, relaxing place to spend time with friends and family while exploring nearby attractions. At KOA Holiday locations, campers can experience nearby cities, hiking trails, beaches, lakes, historic sites, museums and other attractions throughout the day. Then, enjoy a campfire at night. KOA Holiday Campgrounds offer Premium Tent Sites, RV Sites with a KOA Patio, Camping Cabins and Deluxe Cabins.

Resort: Campers will find a place to have fun and relax without having to leave the campground. KOA Resort Campgrounds provide campers with all of the basic amenities they expect plus various recreational activities, staff-led activities and resort-style pools. Activities vary by location, but some KOA Resorts feature shuttles, trains, mini golf courses, horseback riding, jumping pads and game rooms.

Operations and finances

Notably, KOA’s K2 Reservation System provides real-time reservations for franchisees. The platform has a robust booking chart capability, allowing owners and staff to quickly and efficiently move site reservations, filter pricing groups, manage discount programs, swap sites and easily keep track of site inventory. K2 is easily scaled for multipark management, providing critical data to help maximize revenue across all properties. Robust reporting and analytics also allow operators to manage all facets of a campground’s operation, including camp store sales.

Earnings for KOA owners are not publicly available. However, the brand was named on Franchise Business Review’s 2022 “Most Profitable Franchises” report. It was the only outdoor hospitality company to be included on the list.

Costs depend on whether franchisees convert to a KOA or start a new location.

To convert:

• Initial Franchise Fee: $11,250

• Annual Fees: Administration Fee: $1,750 (due at the beginning of year two).Royalty Fee: 8% of camping registration revenue. Advertising Fee: 2% of site registration revenue.

To buy:

• Average Cost: $3,300,000-$4,600,000

• Franchise fee: $35,000

• Net Worth: $1 million

• Liquid Assets: $500,000

The franchise fee ranges from $11,250-$35,000.

• Toby O'Rourke — CEO

• The Koa Difference

• Start a KOA Franchise in 2023

• Koa Hosts Second Largest Annual Convention, Celebrating A World-Class Net Promoter Score Of 70

• Kampgrounds Of America, Inc. Is The Only Hospitality Franchise Named To Most Innovative Franchise And Top Franchise Culture Lists

• Kampgrounds Of America, Inc. Recognized As A Top 400 Franchise

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