KOA
Kampgrounds of America, Inc.
Company Information
1205 N. Transtech Way
Kampgrounds of America, Inc (KOA) is a Montana corporation organized in September 1960. Their principal business address is Transwestern III Building, Fourth Floor, 550 North 31st Street, Billings, Montana 59101. They have sold franchises for KOA campgrounds since October 1963.
As a KOA-franchised campground, you must offer camping sites to travelers who are using KOA Deluxe Cabins, recreational vehicles, travel trailers, and tents for living accommodations while they travel to or vacation at their destination. To promote the brand and the success of your campground, we set minimum service and quality standards and require certain amenities, which would be set out in the KOA Quality Assurance & Policy Manual. To optimize alignment of our standards and requirements with the type of customer you serve, we developed Journey KOA, Holiday KOA and Resort KOA brand categories. We are confident these categories benefit you and us, because the category allows focused marketing and promotion targeted as potential customers who are most likely to camp with you. Future editions of the KOA Quality Assurance & Policy Manual will detail related services, facilities and amenities. The market for camping facilities and services is well developed. The demographics of the market population include young and old; families and singles; modest income and high income; and currently employed and retired persons. Sales may be seasonal or non-seasonal, depending on the campground location. Further, KOA campgrounds compete with independent campgrounds, other campground chains, and state and federal campgrounds.
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Franchise Rating
Franchimp Summary Rating
7/10
Earning Transparency
10/10
Franchise Attrition
4/10
Investment Accessibility
7/10
Franchise System Development
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Distribution of KOA Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $13,500 Maximum: $80,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $108,000 Maximum: $16,141,775
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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