RV Trip Planning Discussions

Go Back   iRV2 Forums > THE OWNER'S CORNER FORUMS > Newmar Owner's Forum
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 08-13-2018, 06:17 PM   #1
Senior Member
 
turbopilot's Avatar
 
Join Date: Aug 2017
Posts: 1,460
KOA Franchise

Putting together the Class A RV Parks Map got me interested in looking at the business models for these entities.

KOA has put together a very nice KOA Franchise Sales page that walks through all the steps of building and operating a KOA franchise.

They want a $30,000 franchise fee and 10% of revenues with a 5 year agreement. What I found more interesting were the details around building a new KOA. They claim a minimum of 10 acres (sounds low), $1.8 to $2.3 million investment will get you a nice 75 RV site KOA. That works out to $30,000 per site construction cost. All sounds too low.

In another post on the forum by someone in the business claimed a high end RV park would require between $75,000 and $100,000 per RV site for construction. This makes more sense. Given the seasonal nature of this business I don't see how the math works for a new park without charging hotel like nightly rates.

Be fun to build a nice park but it would appear to be a poor investment. May explain why so many states have no new Class A RV parks.
__________________

__________________
2018 New Aire 3343
turbopilot is online now   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 08-13-2018, 06:29 PM   #2
Senior Member
 
wildtoad's Avatar
 
Join Date: Jul 2010
Posts: 3,518
And then there are those that complain about the cost of staying at a KOA. Granted some are better than others but many do have pools, laundry, play grounds, WiFi ( some actually work ), propane, and much more. All of which has to be paid for, as does the staff, taxes, Internet. All in I think their prices are fair. Higher than I’d like to pay, but I’m glad they have services that I use.
__________________

__________________
Tom Wilds
Blythewood SC
2016 Newmar Bay Star Sport 3004
2015 Jeep Wrangler 2DR 4WD Sahara, Automatic, Hard Top
wildtoad is offline   Reply With Quote
Old 08-13-2018, 08:07 PM   #3
Senior Member
 
stepside454's Avatar
 
Join Date: Jan 2011
Posts: 1,550
So many people have no idea the cost of running a business . Obviously some are more profitable than others , but people seem to think itís all profit all the time
stepside454 is offline   Reply With Quote
Old 08-13-2018, 08:21 PM   #4
Senior Member
 
Stuart W's Avatar


 
Newmar Owners Club
Join Date: Nov 2015
Location: LA CA
Posts: 4,900
The trend seems to be large corporations owning and operating numerous R.V. resorts.
__________________

2018 Dutch Star 4369 Spartan!
2017 Jeep Wrangler Smoky Mountain
2016 Canyon Star 3710 SOLD
Stuart W is online now   Reply With Quote
Old 08-13-2018, 08:25 PM   #5
UAV
Senior Member
 
UAV's Avatar
 
Join Date: Dec 2012
Location: Wheat Ridge, CO
Posts: 235
Stepside454 is absolutely correct. I have owned my own business for 24 years and it is amazing how many people thinking I am lying to them when I discuss overhead, employee costs, etc. with them.
__________________
David, Aggie and our Co-Pilot Pickles
2019 New Aire 3343 on order & 2017 Buick Envision Toad
WK0P
UAV is offline   Reply With Quote
Old 08-13-2018, 09:52 PM   #6
"Formerly Diplomat Don"
 
Dutch Star Don's Avatar
 
Newmar Owners Club
Join Date: Apr 2005
Location: Moorpark, Ca.
Posts: 11,181
We stayed at the Glacier NP KOA this summer. It's the one on the cover of the KOA magazine this year. It was not only the KOA of the year, but one of the nicest parks we've ever stayed at. It was in woods, perfectly designed, reasonably priced and spotless.

Click image for larger version

Name:	P1000371.jpg
Views:	135
Size:	588.1 KB
ID:	215043
__________________
Don & Mary
2019 Newmar Dutch Star 4018
2016 GMC Canyon 4WD Crew Cab
Dutch Star Don is offline   Reply With Quote
Old 08-13-2018, 10:07 PM   #7
Senior Member
 
Stuart W's Avatar


 
Newmar Owners Club
Join Date: Nov 2015
Location: LA CA
Posts: 4,900
KOA Franchise

Quote:
Originally Posted by Dutch Star Don View Post
We stayed at the Glacier NP KOA this summer. It's the one on the cover of the KOA magazine this year. It was not only the KOA of the year, but one of the nicest parks we've ever stayed at. It was in woods, perfectly designed, reasonably priced and spotless.



Attachment 215043


I really like the light paint color on the top wall/roof area
__________________

2018 Dutch Star 4369 Spartan!
2017 Jeep Wrangler Smoky Mountain
2016 Canyon Star 3710 SOLD
Stuart W is online now   Reply With Quote
Old 08-13-2018, 10:11 PM   #8
Senior Member
 
Join Date: Sep 2014
Location: Tucson
Posts: 968
I've stay at several RV parks in the past few years that used to be KOA's as evidenced by the unique architecture KOA uses. Several counter persons have told me they grew tired of paying KOA 10% of everything.
V3600 is offline   Reply With Quote
Old 08-13-2018, 10:48 PM   #9
Senior Member
 
turbopilot's Avatar
 
Join Date: Aug 2017
Posts: 1,460
Quote:
Originally Posted by Dutch Star Don View Post
We stayed at the Glacier NP KOA this summer. It's the one on the cover of the KOA magazine this year. It was not only the KOA of the year, but one of the nicest parks we've ever stayed at. It was in woods, perfectly designed, reasonably priced and spotless.

Attachment 215043
That KOA is done so well I wonder if it is a company owned property. If you dive into the KOA details you will find there is a KOA Company Owned Properties Division that includes "28 large campground properties".
__________________
2018 New Aire 3343
turbopilot is online now   Reply With Quote
Old 08-14-2018, 10:39 AM   #10
Senior Member
 
deaton's Avatar


 
Monaco Owners Club
Newmar Owners Club
Texas Boomers Club
Spartan Chassis
Join Date: Jan 2010
Location: New Braunfels, Texas
Posts: 1,044
KOA Franchise

Quote:
Originally Posted by V3600 View Post
I've stay at several RV parks in the past few years that used to be KOA's as evidenced by the unique architecture KOA uses. Several counter persons have told me they grew tired of paying KOA 10% of everything.


The 10% may seem high, but think of all the Good Sam parks where independent RV resort owners are routinely giving up the same percentage ON TOP of the annual fee (based on revenues) they pay to Camping World, opps I meant Good Sams, for the privilege of being a GS Park.

One of our local parks used to be a GS Park, but they took down the sign because they didnít want to keep paying the fee. They still offer a discount for silver hair and military.

If you pay $30 a year for a KOA card, you also get 10%. I would guess the park eats that, but donít know. I doubt KOA is down-streaming any if that $30.
__________________
Dan & Linda
FMCA 399045 NKK 22240
2017 Dutch Star 4018 - Spartan K2
2013 Jeep Grand Cherokee 4x4
deaton is offline   Reply With Quote
Old 08-14-2018, 11:34 AM   #11
Senior Member
 
turbopilot's Avatar
 
Join Date: Aug 2017
Posts: 1,460
Quote:
Originally Posted by deaton View Post
The 10% may seem high, but think of all the Good Sam parks where independent RV resort owners are routinely giving up the same percentage ON TOP of the annual fee (based on revenues) they pay to Camping World, opps I meant Good Sams, for the privilege of being a GS Park.

One of our local parks used to be a GS Park, but they took down the sign because they didn’t want to keep paying the fee. They still offer a discount for silver hair and military.

If you pay $30 a year for a KOA card, you also get 10%. I would guess the park eats that, but don’t know. I doubt KOA is down-streaming any if that $30.
That's where free, crowd sourced sources like the Class A RV Parks map can really make a difference. Let the good parks keep the 10% to improve the park while all the folks who drive a Newmar stay at those parks and do the promotion among fellow coach owners.
__________________
2018 New Aire 3343
turbopilot is online now   Reply With Quote
Old 08-14-2018, 11:43 AM   #12
Senior Member
 
creativepart's Avatar
 
Winnebago Owners Club
Join Date: Sep 2009
Location: Spring Branch, TX
Posts: 619
It seems there are lots of RV parks for sale around the country. Many old park owners that want to cash out and retire. I'd think buying a decent park and fixing it up would be less initial cost and depending on location could be a better investment.

I was self-employed for 30-years and sold my business a year ago. I'm happy to not have to work and pay overhead, etc anymore. Running an RV park is for the young entrepreneur. Us old guys are too grumpy to deal with those kinds of headaches.

Employees? Don't get me or any other business owner started on that subject.
__________________
2017 Winnebago Adventurer 37F
2016 Lincoln MKX Toad
creativepart is online now   Reply With Quote
Old 08-14-2018, 11:59 AM   #13
Senior Member
 
lostinfla's Avatar


 
Join Date: Oct 2014
Location: Ft. Myers, Fl.
Posts: 828
Quote:
Originally Posted by Stuart W View Post
I really like the light paint color on the top wall/roof area
I think it's up for sale now Stuart!
__________________
Jim, Bonnie & Irma (our hurricane rescue)
2016 DSDP 3736 all electric, custom paint and interior. HWH Active Air coming soon
2014 Wrangler Altitude

Prov. 3: 5-6
lostinfla is offline   Reply With Quote
Old 08-14-2018, 01:38 PM   #14
Newmarian
 
NealC's Avatar


 
Newmar Owners Club
Appalachian Campers
Freightliner Owners Club
Join Date: Feb 2017
Location: Midlothian, VA
Posts: 2,677
Maybe Camping World can open a series of RV parks...

(reeling in the line)
__________________

__________________
Neal (and Sam - yellow lab)
2017 Newmar Ventana 4037 with 1800W Solar | 2017 Chevy Colorado with Blue OX/AF1

NealC is online now   Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
KOA Daytona & KOA KeyWest Crazy Canucks Camping Locations, Plans & Trip Reports 13 03-09-2011 06:42 AM
KOA Mt. Pleasent, Sc widowsson68 Camping Locations, Plans & Trip Reports 0 03-01-2009 12:03 PM
KOA Cherokee N.C. Mike R Camping Locations, Plans & Trip Reports 5 06-20-2007 04:55 AM
A big "YAHOO" to KOA Nashville Forever Free Camping Locations, Plans & Trip Reports 3 01-31-2007 01:39 PM
Charlottesville,Va KOA diandtom Camping Locations, Plans & Trip Reports 6 11-09-2006 02:06 PM

» Featured Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 09:47 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.