What You need to know about owning aCampground
Owning a Kampgrounds of America, Inc. location is a great way to develop a successful business while enjoying the great outdoors. As a campground owner, you will meet new people, help families enjoy quality time together and watch campers enjoy themselves at your campground. Start a new business adventure by owning a KOA Campground today!
Pros and Cons of Owning a Campground
Running a campground is a great experience, allowing you to meet many new people and foster a feeling of community among fellow campers. However, as with any business, there are some considerations, such as customer service and compliance concerns.
Some benefits of owning a campground include:
1. Recreational Enjoyment
By owning a campground, you are creating a safe place for people to enjoy the outdoors and connect with other campers who appreciate nature. Depending on your campground location, you can make it a place for people to engage in activities like hiking, fishing and biking.
2. Community Building
After owning your campground for a few years, you may have some campers who become regulars or even friends you see year after year. In addition, you can use your campground to foster a sense of community to create a loyal customer base.
3. Seasonal Income
As a campground owner, you may experience peak seasons when your business is more profitable than others. These business booms may enable you to earn enough income to provide for your business during slower or off seasons.
4. Low Overhead Costs
Campgrounds typically have lower overhead costs than other businesses. Some reasons contributing to lower costs include minimal infrastructure, which reduces initial and ongoing expenses and self-service amenities such as communal bathrooms and picnic tables, which minimize the need for constant staff supervision. This means hiring fewer staff members or placing staff in income-earning areas like a campground restaurant or store.
Running your own campground also involves some considerations, like:
1. Seasonal Income
Depending on your location, your campground may only be open for certain months of the year, which can affect your overall income. Vacation patterns can also impact how many people visit your campground.
2. Maintenance
As with any business, you likely need to perform continuous maintenance to keep the campground in excellent condition. Additionally, you may wish to add amenities, more buildings and other upgrades to the campground, which can increase your overall operational expenses.
3. Compliance
Keeping your campground safe for everyone requires staying on top of compliance needs and other regulations. For example, if you wish to add another building or more sites to your campground, you may need to acquire zoning permits, which can be time-consuming.
4. Weather Risks
The weather is one of the more unpredictable aspects of running a campground. Inclement weather can cause cancellations, which can affect the revenue you bring in during a camping season. Severe weather can also damage buildings and other elements of your campground, resulting in costly repairs.
How much does it cost to run a campground?
Before starting your new business venture, it is essential to know the cost of owning a campground. To purchase an existing KOA franchise, you will need to invest anywhere from $441,950 to $12,676,425, which includes the initial franchise fee of $10,000 that all owners must pay to KOA.
To convert your independent campground into a KOA Campground, you can expect to pay anywhere from $33,750 to $483,050 — these fees also include the franchise fee of $11,250 that you must pay. The fees associated with constructing a new KOA Campground will vary from $3,803,800 to $8,894,900, which includes the initial franchise fee of $30,000 all owners must pay to KOA.
Some additional expenses you may encounter regardless if you are building, purchasing or converting a campground are:
- Computer hardware and software
- Royalty and advertising assessments
- Initial inventory
- Opening costs
- Signs
- Equipment
- Other campground improvements
- Fixtures
- Real estate
- Training expenses
- Franchise fees
To determine your financial ability to own a campground, KOA offers the Net Worth Estimator and the Startup Costs Estimator Tool. The Net Worth Estimator calculates the funds you need to purchase a KOA. The Startup Costs Estimator determines the campground price range that best matches your available funds.
You may also consider securing financing for your RV park and campground. To help you secure the funding you need, KOA is a partner of Independence Bank of Havre, Montana, and can help you with your unique financing needs. KOA has the resources and industry knowledge to make your goal of owning a KOA a reality.
How to Own a KOA Campground
Owning a campground through KOA is a great way to convert your love of the outdoors into a profitable business. Regardless of whether you would like to own a KOA Journey, Holiday or Resort, you have a few different options for purchasing and establishing a campground.
1. Buying
Buying an existing KOA location is a great opportunity that allows you to grow a successful business within an already established brand. Before purchasing a campground, you will want to have the following in place:
- Necessary financial tools: KOA’s Net Worth Estimator and Startup Costs Estimator can help you determine how much money you have to purchase a campground and a price range that matches your current fund levels.
- Secure financing: Once you are ready to purchase, KOA offers funding options through Independence Bank of Havre, Montana. Through its partnership with KOA, Independence Bank has provided over $140 million in loans to campground owners.
- Find a campground for sale: Complete the KOA contact form to learn more about how to own a campground or to find a campground for sale.
2. Franchising
If you already operate a campground, you can convert it to a KOA, giving you the freedom to do business under a nationally recognized name and have access to a wide range of support resources. Converting to a KOA is a simple process and involves the following steps:
- Obtain local approval.
- Complete an application to become a KOA franchise.
- Schedule a property visit with a KOA representative.
- Sign and execute the KOA franchise contract.
- Attend training at KOA-U.
- Complete the KOA new owner checklist.
- Open your campground under the new KOA name.
- Receive ongoing support from a KOA Business Development Consultant.
3. Building
The final option for owning a KOA is to build a campground on property you already own. The process of building a KOA consists of:
- Obtain local approval.
- Complete an application for KOA review and submit your franchise fee.
- Schedule a property visit with a KOA representative to help you develop a facility design and branding plan.
- Execute your franchise contract.
- Attend KOA training.
- Complete KOA’s new owner checklist.
- Open your campground.
- Access ongoing support from KOA business development consultants.
Benefits of owning a KOA
Being a KOA owner is a profitable and enriching experience and offers benefits such as:
GREATER FREEDOM
As a KOA owner, you can set your schedule based on campground needs and your personal life. With this freedom and flexibility, you can set aside time to work at a side business to earn extra revenue. Many KOA locations also have off-seasons which gives you time to develop a side business, attend to the needs of your campground or take a much-needed break.
SATISFYING EXPERIENCE
Owning and operating a KOA is a challenging and rewarding experience. Your days are never typical, and there is always something new to encounter. By owning an RV park, you get the chance to interact with many different campers who are there to enjoy your campground and develop long-lasting relationships. You also get to share in people’s camping experiences, which can be highly satisfying.
ACCESS TO EXPERT KNOWLEDGE
New and existing owners can access the experience, knowledge and support of hundreds of KOA owners and operators. As an owner, you can also access advice and expertise from over 80 KOA team members.
Own a KOA Campground Today!
Start a new adventure by owning a KOA Campground. With over 500 locations across North America, KOA can help you find the perfect campground to start your path to ownership. KOA offers a wealth of resources and can help you with questions ranging from how to own an RV park to how to run a campground business. To learn more about the many benefits of becoming a KOA Campground owner, complete an information request form!