While owning a campground can be incredibly profitable, starting that business from the ground up is difficult.
Leaning on what is already available in the industry can make the process easier. Learn more about owning a KOA location in our blog, and contact us for more information if you have any questions.
What Are the Biggest Challenges of Starting a Campground?
Some of the most significant challenges you’ll face when starting a campground include:
- High financial investment
- Land requirements
- Complex permitting processes
- Seasonal fluctuations
- Environmental regulations
- Maintenance and operations
Starting a campground requires a significant upfront investment. First, you must find and purchase a stretch of land that meets zoning requirements and has natural features like scenic overlooks or bodies of water. You’ll also have to pay a fee to obtain the proper zoning, environmental, building, and health permits before you can begin building on your new land.
While the average campground provides a 10% to 30% return on investment, seasonal changes in demand can impact your earnings in the off-season. It is essential to manage your cash flow carefully during this time, especially if you are a seasonal campground.
Ongoing maintenance of on-site facilities and customer service is also a labor-intensive process requiring you to hire more staff.
How Do I Start a Campground?
The process for starting a campground includes the following steps:
- Research and design
- Creating a business plan
- Getting funding and obtaining permits
- Choosing a location
- Starting your business
- Hiring staff
- Advertising your campground
- Welcoming your first guests
Once you’ve found a location that meets your requirements, you should create a long-term strategy for your campground.
All of these steps are challenging to complete for independent campgrounds due to the high investment needed to get your business started. Franchising is typically a more affordable alternative to starting a campground from scratch.
Is Franchising a Campground Easier Than Starting From Scratch?
Here’s why franchising a campground is often easier and more affordable than building one from the ground up:
- Built-in customer base
- Recognizable brand name
- Profitability
- Operational excellence
- Additional support
You can purchase an existing location or convert your independent campground into a franchise location.
When you become part of a franchise, you get all the benefits of being associated with their brand. Your parent brand can use its marketing and advertising network to direct campers toward your location, enhancing your return on investment.
The additional resources and support your parent brand can provide can also help you create a more excellent campground than you may have been able to on your own. Any time you need help, you can count on them to point you in the right direction for the answers you need.
How Can I Own a KOA?
There are several routes you can take to be a part of KOA:
For most franchisees, buying a KOA is the fastest and most cost-effective way to begin running a campground with the kind of world-class support the brand offers. You will get a pre-constructed campground with our experts behind you to hit the ground running.
You can also convert an existing campground to a KOA or build an entirely new KOA if you prefer. While these options require a higher investment of time and resources, they offer franchisees the ability to create a wholly unique campground without sacrificing the amenities and benefits of the KOA brand.
Become Part of KOA Today
With over 500 locations across North America, KOA is the most recognizable name in camping.
Let our expert team help you determine the best way to get started. Contact us today for more information on joining the KOA Family of Campgrounds®.
