Campground & RV Park 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:

  • 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:

  • Administration fee: $1,750 due at the beginning of the second year.
  • Royalty fee: 8% of revenue from camping registration.
  • Advertising fee: 2% of revenue from site registration.

Buying Requirements

If you are considering buying an RV park, there are some requirements you need to consider. For one, you must provide a down payment of at least $250,000 in cash for an RV park investment. Before starting the purchasing process, it is also essential to determine your financial ability to ensure you can meet campground ownership needs and goals. You can evaluate your current funding level using KOA’s Net Worth Estimator. Potential buyers can also access KOA’s Startup Costs Estimator to find their ideal price range.

Achieve Your Business Goals With KOA

Whether you build, buy or decide to become a member of the KOA franchise, you will experience the KOA difference. KOA’s fresh, flexible business model allows owners to achieve financial goals while delivering unique camping experiences to all guests. Part of KOA’s ability to provide a superior experience to campground owners lies in the four guiding pillars of:

  • Camper growth: Camping continues to grow in popularity each year, and KOA can help send campers to your campground.
  • Revenue growth: Through a strategic approach to growing and investing, many KOA Campgrounds experience year-over-year revenue growth. Many campgrounds that join the KOA family experienced a 19% revenue registration increase in the first year alone.
  • Operational excellence: All KOA products and resources undergo a careful design process to help owners succeed. As a company, KOA is continually innovating and is often the first to develop and market the latest products and services campers need.
  • KOA family: As a member of the KOA family, you will have access to years of experience and the support of hundreds of owners and operators.

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!