Campground & RVPark Financing
Building, franchising or buying a Kampgrounds of America location is an excellent way to start a new business venture. It is essential to consider the cost of building an rv park and your financial options.
KOA Campground Loans at Independence Bank
Since 2002, Independence Bank has been one of the top hospitality lenders that finance RV parks. Independence Bank has loaned more than $300 million to KOA owners and finances over 40% of all active KOA Campgrounds in the United States. Due to many years of experience as RV park lenders, Independence Bank understands your unique challenges as a KOA owner and wants to help you succeed. The Independence Bank team will be by your side to celebrate your successes and help you navigate any obstacles.
Independence Bank offers two different types of accounts for KOA Campground owners. The first is Campground Advantage Savings which includes:
The KOA Campground Design and Layout Process
During the design process, the KOA team becomes your team. The KOA team features in-house architects and recreation specialists to offer tailored solutions for campgrounds of all sizes. Some of the services available include:
- Free Campground Advantage Checking Sweeps to maximize yield.
- Electronic statements.
- Option to pair with a Campground Advantage Checking account.
- Six withdrawals per month.
- No monthly maintenance fee.
- Interest-earning business savings account.
The second account available for KOA Campground owners is a Campground Advantage Checking account which includes features such as:
- Overdraft and returned check fees.
- IB switch kit to quickly move accounts.
- Electronic statements.
- Ability to pair with a Campground Advantage Savings account.
- Tied to merchant services.
- Free online banking and bill pay.
- No monthly maintenance fees.
- Interest accruing account.
New Construction Requirements
Before building an RV park with KOA it is essential to keep some campground financing requirements in mind, such as:
Initial Franchise Fee
Before starting construction, you must pay an initial franchise fee of $30,000, which includes:
- Consulting for technical services and assistance with campground design.
- KOA sign package.
- Training sessions at KOA University in Billings, Montana, for two people.
- On-site training sessions from a KOA Business Development Consultant.
- Access to K2, KOA’s in-house management software.
Additional Fees
As a KOA owner, you will also have additional fees such as:
- Annual administration fee: $1,750 that’s due at the start of your second year.
- Royalty fee:8% of your camping registration revenue.
- Advertising fee: 2% of your site registration revenue.
New Construction Guidelines
KOA also has specific guidelines owners must follow when completing new construction on a KOA:
- Net worth: $1,000,000
- Liquid assets: $500,000
- Initial development: Must build 90 total sites with 75 RV sites
- Average cost: $2,250,000 to $4,000,000
Franchise Requirements for an Existing Campground
Another option for those interested in joining the KOA community is to turn your existing campground into a KOA. By joining the KOA franchise, you become a member of a supportive community while gaining the opportunity to utilize KOA’s effective marketing tools. Some of the costs associated with joining the KOA franchise include:
Initial Franchise Fee
To turn your existing campground into a KOA franchise, you must pay an initial fee of $11,250, which includes:
- KOA campground sign package
- Opportunity for training sessions at KOA University in Billings, Montana, for two people
- On-site training sessions with a KOA Business Development Consultant
- Access to KOA’s management software, K2
Annual Fees
As a KOA Campground, you will also have to pay annual expenses such as:
- Annual administration fee: $1,750 that’s due at the start of your second year.
- Royalty fee:8% of your camping registration revenue.
- Advertising fee: 2% of your site registration revenue.
Learn More About KOA Financing Today
With over 500 campgrounds across North America, it is no wonder why KOA is one of the top camping locations. If you want to start your journey into KOA ownership, complete the online contact form today!